Goldman Sachs has maintained its buy call on United Spirits Limited (USL) with a target price of ₹1,575 after the company delivered a first-quarter performance ahead of topline estimates. The brokerage noted that volume growth was muted when adjusted for the impact of Andhra Pradesh, but said the overall showing was encouraging given the operating environment.
Goldman Sachs expects structural benefits from the UK-India free trade agreement to begin accruing from the first quarter of FY27, potentially providing tailwinds for both growth and margins. It has, however, trimmed FY26–28 earnings per share estimates by 2–4% to reflect near-term pressures. Despite the cut, the brokerage remains constructive on USL’s medium-term outlook, citing strong premiumisation trends and the company’s ability to expand margins through disciplined cost control.
Disclaimer: The views and recommendations made in this article are those of Goldman Sachs. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
