Macquarie has maintained its underperform rating on United Spirits (USL) with a target price of ₹1,250 per share after the company reported a better-than-expected Q2FY26 performance. EBITDA exceeded estimates, supported by gross margin expansion and lower advertising spend.
The brokerage said the company’s Prestige and Above segment continued to perform well despite tax hikes in Maharashtra, demonstrating strong brand resilience. Robust first-half margin performance has led Macquarie to believe FY26 EBITDA margin guidance may see an upward revision if cost efficiencies sustain.
It also highlighted improved working capital efficiency driven by lower debtors as a key positive, although competition from locally produced “Maharashtra Made Liquor” (MML) brands continues to undercut lower-tier offerings in the Prestige segment.
Macquarie believes margin stability will remain the key focus for the management in the near term, with the premiumisation strategy driving steady growth amid an evolving taxation environment.
Disclaimer: The views and recommendations above are those of Macquarie. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
