United Spirits sales in its lower-priced popular segment fell 22.7% to ₹181 crore in the September 2026 quarter, as the Diageo-controlled liquor maker faced consumer pressure and adverse policy changes in two Indian states.

United Spirits sales shift toward premium brands

The popular segment accounted for about 6% of revenue, while the prestige and above portfolio grew 6% and made up 94%. The company said policy changes in Maharashtra and Karnataka hurt the lower-priced business.

Chief Executive Praveen Someshwar said inflation was straining the wallets of consumers targeted by the lower end of the Indian-made foreign liquor portfolio, while higher consumer segments remained resilient.

The company has no immediate plans to intervene in its popular portfolio, which largely comprises McDowell’s rum. Chief Financial Officer Pradeep Jain said future profit and growth opportunities lay in higher-priced brands.

Costs and Scotch import duties

United Spirits said the West Asia conflict added about ₹50 crore to quarterly costs, affecting glass, energy, packaging and logistics. Prices of extra neutral alcohol, an ingredient used in spirits, have also begun to rise, the company said.

Jain said the company hoped lower Scotch import duties would offset the extra neutral alcohol cost in the coming quarter, but that the impact beyond then was difficult to assess. Under the UK-India agreement’s Scotch whisky tariff reduction, the tariff fell from 150% to 75% when the deal entered into force, with further staged reductions to 40% over ten years.

The duty benefit comes amid an investigation by India’s Directorate of Revenue Intelligence into the classification of Scotch imports.

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