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Mint
a day ago
- Business
- Mint
United Spirits stock can get tipsy amid near-term party poopers
The United Spirits Ltd stock is down 23% from its 52-week high of ₹1,700 seen on 3 January. Investors hoping for a quick turnaround may be disappointed, particularly as the recently announced June quarter (Q1FY26) results offered little excitement. The company, which produces and sells alcoholic beverages such as McDowell's No. 1 and Royal Challenge, is grappling with a policy setback. In June, excise duty on Indian Made Foreign Liquor (IMFL), country liquor, and imported alcohol was increased in Maharashtra. According to United Spirits' management during the Q1 earnings call, the duty hike has translated into a 30-40% rise in maximum retail price (MRP). Maharashtra accounts for a mid-to-high-teens share of the company's sales in value terms. To mitigate the impact on earnings, United Spirits has implemented selective price adjustments. Duties were largely absorbed in the middle-prestige segment and partially in the lower-prestige segment. In the popular and below-prestige categories, however, the full duty increase was passed on to consumers to meet the minimum price requirement. The management expressed cautious optimism on discretionary demand. Early indicators point to strong double-digit growth in consumer spending, but this may not be enough to keep revenue neutral, raising concerns that downtrading could hurt volume and profitability. ICICI Securities Ltd has accordingly cut its earnings estimates for FY26 and FY27 by 5% and 4%, respectively, reflecting near-term headwinds from the sharp Maharashtra duty hike. Plus, Q1FY26 results were lacklustre with year-on-year revenue and volume growth of 8.4% and 9.4%, respectively, mainly aided by Andhra Pradesh resuming operations after five years and traction in prestige & above (P&A) portfolio. P&A formed 88.3% of Q1's net sales, up 50 basis points (bps) year-on-year. P&A volume and value growth stood at 9% each in Q1FY26. The guidance of double-digit revenue growth in P&A over the medium-to-long term was retained. This is expected to be aided by premiumization-led innovations and scaling up exports. In the upper-prestige category, the Signature brand saw robust growth last quarter and in the mid prestige category, pocket packs of Royal Challenge saw double-digit growth. Further, progressive policy changes in other states such as Uttar Pradesh, Madhya Pradesh and Jharkhand, are seen as tailwinds. The company has still not participated in the newly introduced category Maharashtra Made Liquor in the state. While commodity inflation was under control in Q1FY26, the management cautioned of supply related temporary disruption in glass prices owing to planned shutdowns from key suppliers. Also, ENA (extra neutral alcohol) derived from ethanol remains inflationary. Here, ethanol blending targets for 2025-26 are crucial as the government has not revised the ethanol blending policy in the past two years. The next announcement on this is anticipated in October-November. United Spirits saw a one-off indirect tax impact in Q1, excluding which, Ebitda margin dipped 162 bps year-on-year to 17.9%. Also, advertisement spends were elevated. Yes Securities estimates Ebitda and earnings CAGR of 11.9% and 9.8%, respectively, over FY25-27 for the standalone business, however, it sees just 70 bps improvement in Ebitda margin as there will be aggressive spending on innovations over the next two years. 'Premiumization and productivity initiatives should help drive margin improvement over FY25- FY27, but at a lower rate compared to earlier years," it added. Meanwhile, the stock trades at a FY27 price-to-earnings multiple of 46x, according to Bloomberg data, suggesting valuations are expensive in the current backdrop.
Hans India
12-06-2025
- Politics
- Hans India
Not a mad man, I don't even drink Royal Challenge
New Delhi: Karnataka Deputy Chief Minister DK Shivakumar, on Thursday, refuted the rumours of him buying the Royal Challengers Bengaluru (RCB) franchise, saying that he is not a mad man. Speaking to ANI, Shivakumar said that he had offers to be part of the management, but he doesn't have time for this.'I am not a mad man. I'm just a member of the Karnataka Cricket Association from my younger days, that's all. I don't have time, though I had offers to be part of the management... Why do I need RCB? I don't even drink Royal Challenge,' the Karnataka Dy CM said. On June 4, the stampede that occurred during celebrations outside M Chinnaswamy Stadium in Bengaluru during the Royal Challengers Bengaluru (RCB) Indian Premier League (IPL) victory celebrations claimed 11 lives. Following the Bengaluru stampede, the Karnataka Government on June 5 suspended top police officials at the Cubbon Park Police Station and formed a one-man commission under a retired High Court Judge to probe the incident. Earlier in the day, Siddaramaiah dismissed the BJP's demand for his resignation over the Bengaluru stampede, accusing the party of 'doing politics in everything. 'Chief Minister Siddaramaiah questioned why the BJP had not demanded the resignation of Uttar Pradesh Chief Minister Yogi Adityanath when a stampede occurred during the Kumbh Mela in Prayagraj earlier this year.'40-50 people died in a stampede at Kumbh Mela. Did they demand the chief minister's resignation then? A bridge collapsed on the day of the inauguration, and 140 people died. Did they demand the Prime Minister's resignation then?' Siddaramaiah asked while talking to reporters here.
New Indian Express
12-06-2025
- Politics
- New Indian Express
‘Why do I need RCB? Don't even drink Royal Challenge,' says DKS on IPL team buy
NEW DELHI/BENGALURU : Deputy Chief Minister DK Shivakumar, who is also the president of the Karnataka Pradesh Congress Committee, on Wednesday rubbished rumours of buying the Royal Challengers Bengaluru (RBC) franchise. 'I am not a mad man. I am just the member of Karnataka Cricket Association from my younger days. I don't have time. Though I had offers to be part of the management ... I don't have time. My own educational institutions, I have resigned and left it to other members of the family to take care of it. Why I need RCB? I don't even drink Royal Challenge,' Shivakumar told a news agency in New Delhi.
India Gazette
11-06-2025
- Politics
- India Gazette
"Not a mad man, I don't even drink Royal Challenge": DK Shivakumar refutes rumours of buying RCB franchise
New Delhi [India], June 11 (ANI): Karnataka Deputy Chief Minister DK Shivakumar, on Thursday, refuted the rumours of him buying the Royal Challengers Bengaluru (RCB) franchise, saying that he is not a mad man. Speaking to ANI, Shivakumar said that he had offers to be part of the management, but he doesn't have time for this. 'I am not a mad man. I'm just a member of the Karnataka Cricket Association from my younger days, that's all. I don't have time, though I had offers to be part of the management... Why do I need RCB? I don't even drink Royal Challenge,' the Karnataka DyCM said. On June 4, the stampede that occurred during celebrations outside M Chinnaswamy Stadium in Bengaluru during the Royal Challengers Bengaluru (RCB) Indian Premier League (IPL) victory celebrations claimed 11 lives. Following the Bengaluru stampede, the Karnataka Government on June 5 suspended top police officials at the Cubbon Park Police Station and formed a one-man commission under a retired High Court Judge to probe the incident. Earlier in the day, Siddaramaiah dismissed the BJP's demand for his resignation over the Bengaluru stampede, accusing the party of 'doing politics in everything.' Chief Minister Siddaramaiah questioned why the BJP had not demanded the resignation of Uttar Pradesh Chief Minister Yogi Adityanath when a stampede occurred during the Kumbh Mela in Prayagraj earlier this year. '40-50 people died in a stampede at Kumbh Mela. Did they demand the chief minister's resignation then? A bridge collapsed on the day of the inauguration, and 140 people died. Did they demand the Prime Minister's resignation then?' Siddaramaiah asked while talking to reporters here. Earlier today, the Karnataka High Court reserved the order on the petition filed by RCB's marketing head Nikhil Sosale, seeking interim relief on the ground that his arrest in alleged connection with the Bengaluru stampede was illegal. The High Court reserved the order for June 12 at 2:30 pm. (ANI)
Time of India
11-06-2025
- Politics
- Time of India
'I Don't Drink...': Karnataka Deputy CM Shivakumar Dismisses Rumours of Buying RCB Amid Stampede Row
Karnataka Deputy Chief Minister DK Shivakumar has firmly denied rumours about purchasing the Royal Challengers Bengaluru (RCB) IPL franchise. The Congress leader humorously dismissed the speculation, saying, 'Why do I need RCB? I don't even drink Royal Challenge.' Though a longtime member of the Karnataka Cricket Association, Shivakumar says he has no time to be involved in the franchise's management despite offers. The rumours follow reports that Diageo, current owner of RCB, may sell part or all of the team. The franchise has also been under scrutiny after a tragic stampede at Chinnaswamy Stadium killed 11 people during an IPL celebration. Shivakumar said the Karnataka government will soon implement policies to improve crowd management. Meanwhile, political opposition has criticised the government's handling of the tragedy.#dkshivakumar #rcb #royalchallengersbengaluru #royalchallenge #ipl2025 #bengalurustampede #karnatakapolitics #royalchallengersbengaluru #toi #toibharat #bharat #breakingnews #indianews Read More
