United Spirits hikes ad spend to Rs 523 Crore in Q3 FY26 amid revenue growth pressure

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.

United Spirits hikes ad spend to Rs 523 Crore in Q3 FY26 amid revenue growth pressure

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.