Macquarie has retained its ‘Underperform’ rating on United Spirits Ltd (USL) with a target price of ₹1,250, citing regulatory headwinds despite encouraging growth in the prestige segment. The stock is currently trading at ₹1,337, suggesting limited upside potential from current levels.
USL Q1 outlook and segment view
Macquarie noted that performance ahead of Q1FY26 has been largely in line with expectations, and it is projecting a 2% EBITDA decline for the quarter. The brokerage remains encouraged by the healthy growth in the prestige portfolio, which continues to demonstrate strong consumer traction.
Key concern: Maharashtra tax hike impact on USL
However, Macquarie flagged concerns over the recent sharp tax hike in Maharashtra, which could pose a risk to volume and margin performance in one of USL’s key markets. This policy shift is expected to weigh on profitability and create near-term uncertainty in an otherwise stable demand environment.
Brokerage view summary:
| Brokerage | Rating | Target Price | Key Takeaways |
|---|---|---|---|
| Macquarie | Underperform | ₹1,250 | Prestige segment growth steady, but regulatory risk from Maharashtra tax hike remains an overhang |
Disclaimer: This article is based on brokerage reports and is for informational purposes only. It does not constitute investment advice. Investors should consult their financial advisors before making investment decisions.
