As of , United Spirits Ltd (Alcoholic Beverages) has a deep value score of 42/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -21%.
Earnings deceleration risks from management commentary
Trigger: Maharashtra is a major market; the tax-driven price increase compresses volume, and the state-sponsored MML at INR160/180mL directly competes with IMFL Prestige segment; impact duration uncertain for at least 2 more quarters per management
Monitor: regulatory
Trigger: AP was a high-growth tailwind in FY25 due to market liberalization; as it laps the base, H2 FY26 growth will face a harder comparable, and management acknowledges H2 is 'a lot more challenging'
Monitor: regulatory
Trigger: ENA price is government-set and could increase; bulk scotch is globally priced; both structurally pressure input costs and gross margin over time
Monitor: commodity
Trigger: State-level policy reform is a binary event; delayed opening of Bihar or Delhi means revenue growth must come from existing geographies under higher competitive pressure
Monitor: regulatory
Trigger: Not explained on call
Monitor: labor
Key quotes from recent conference calls
“Yes. So, first, Jay, thanks for the question. Yes. I think, look, it's a 35% price increase roughly on an industry basis...it's a 10% to 15% decline. [Risk (regulatory): HIGH]”
“AP has helped you by about 700 basis points in value terms, right, growth for the first half and that is something you've called out. [Risk (regulatory): MEDIUM]”
“On the cost side, barring for neutral alcohol spirit and bulk scotch that are structurally inflationary, input commodity inflation is under control. [Risk (commodity): LOW]”
“Bihar is a massive opportunity. Your guess will be as good as mine. So I am not really gonna a guess. [Risk (regulatory): MEDIUM]”
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +4% | +6% | Stable |
| PAT (Net Profit) | +28% | +18% | Inflection Up |
| OPM | 19.0% | +200 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 30, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
United Spirits Ltd has a deep value score of 42/100 (rated Average). This score is calculated from three components
United Spirits Ltd's quarterly profit (PAT) growth trajectory
United Spirits Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
United Spirits Ltd's earnings momentum is Steady — consistent growth.
United Spirits Ltd's valuation metrics
United Spirits Ltd's revenue and margin trends
United Spirits Ltd's trailing twelve month (TTM) performance
United Spirits Ltd key facts
United Spirits Ltd shows limited deep value signals currently — score is 42/100 (Average). Monitor for improvement.
Other deep value stocks in Alcoholic Beverages
Alcoholic Beverages deep value sector overview
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
United Spirits Ltd has 5 key risks worth monitoring
In Q2 FY26, United Spirits Ltd's management highlighted
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
