United Spirits hits a dry patch

Growth levers

- Harsha Jethmalani

The United Spirits Ltd (USL) stock is down 22% from its 52-week high of ₹1,700 seen on 3 January. Investors hoping for a quick turnaround may be disappointed, particularly as the June quarter (Q1FY26) offered little excitement.

The company, which produces and sells alcoholic beverages such as McDowell's No. 1 and Royal Challenge, is grappling with a policy setback. In June, excise duty on Indian Made Foreign Liquor (IMFL), country liquor, and imported alcohol was increased in Maharashtra. According to the management during the Q1 earnings call, the duty hike has translated into a 30-40% rise in maximum retail price (MRP). Maharashtra accounts for a mid-to-high-teens share of the company's sales by value.