United Spirits significantly increased its advertising and sales promotion expenditure in the December quarter, reflecting an assertive brand push even as profitability faced pressure sequentially.
The Diageo India-owned liquor company spent Rs 523 crore on advertising and sales promotion in Q3 FY26, marking a 115.2% rise from Rs 243 crore in the September quarter. Compared to the December 2024 quarter, ad spends grew 36.9% from Rs 382 crore.
This surge in marketing investment coincided with a 10.3% sequential increase in revenue from operations, which reached Rs 7,942 crore in the December quarter, up from Rs 7,199 crore in Q2 FY26. However, year-on-year revenue growth remained modest at 2.7%, up from Rs 7,732 crore a year ago. Total income for the quarter stood at Rs 7,993 crore, rising 9.8% quarter-on-quarter and 2.4% year-on-year.
The higher marketing outlay impacted margins sequentially, with profit before tax declining 13.3% quarter-on-quarter to Rs 541 crore from Rs 624 crore in the previous quarter. On a year-on-year basis, PBT rose 12.7% from Rs 480 crore in Q3 FY25. Profit after tax for the December quarter was Rs 418 crore, down 9.9% sequentially from Rs 464 crore, but up 24.8% compared with Rs 335 crore a year earlier.
For the nine months ended December 31, 2025, United Spirits reported advertising and sales promotion expenses of Rs 1,004 crore, up 23.2% from Rs 815 crore in the same period last year, indicating continued brand investment through the fiscal. Total income for the nine-month period increased 4.0% year-on-year to Rs 21,640 crore, while profit after tax rose to Rs 1,299 crore from Rs 1,161 crore a year earlier.