United Spirits Ltd (USL), a liquor giant owned by Diageo, has received a significant reprieve from a substantial service tax demand. According to a regulatory filing with the exchanges, the Commissioner has granted USL complete relief on a service tax demand of ₹194.5 crore, which was initially part of a larger demand of ₹527.7 crore.

The order addressed key issues related to service tax levied on income derived from Contract Bottling Units (CBUs) under the classification of Intellectual Property Rights (IPR) Services, as well as matters related to CENVAT credit availment and associated de novo considerations. As a result, the total demand faced by USL has been drastically reduced to ₹0.88 crore, plus applicable interest and penalty.

Despite the significant reduction, USL intends to pursue further legal recourse. The company plans to file an appeal with the appropriate higher authority to contest the residual demand, indicating its commitment to minimizing its tax liabilities.

The development is a significant victory for USL, which has been embroiled in a long-standing dispute with the authorities over the service tax demand. The company had been contesting the demand, arguing that it was not liable to pay service tax on the income derived from CBU operations.

The reduction in the demand could have a positive impact on USL’s financial performance, which has been under pressure in recent years due to various factors, including increased competition and high taxation. The company’s efforts to contest the demand and minimize its tax liabilities are likely to be a significant relief to its shareholders and stakeholders.

The Indian Premier League (IPL) is one of the most popular T20 cricket tournaments in the world, attracting millions of fans. One of the most talked-about franchises is Royal Challengers Bengaluru (RCB), a team that has gained immense popularity despite not winning an IPL title. RCB, led by Rajat Patidar in the IPL 2025 season, remains a strong contender with star players like Virat Kohli, Liam Livingstone, and Phil Salt.

The franchise is among the richest in the league, owned by United Spirits Limited (USL), a subsidiary of Diageo Group, a global leader in the alcohol industry. USL, led by Chairman Prathmesh Mishra, is also the parent company of United Spirits, which has a strong financial portfolio.

RCB’s brand value has seen tremendous growth, with a brand worth of $117 million (approximately Rs 1,013 crore) as of IPL 2025. The team’s massive fan following, strong digital presence, and strategic commercial deals have contributed to this significant increase.

Despite not having won an IPL title, RCB remains one of the most influential franchises in the league, with a strong squad and a passionate fan base. With Prathmesh Mishra as the Chairman, RCB continues to grow in brand value and market influence.

The team’s performance in IPL history has been impressive, with three finals appearances and multiple playoff appearances. While they have not won the title yet, RCB is a strong contender in the league, and fans are eagerly waiting to see if this will be the year they finally win their first IPL title.

United Spirits Limited (NSE:UNITDSPR) has received a significant boost from analysts, who have upgraded their estimates for the company’s revenue in 2026. The new estimates suggest a 27% increase in sales to ₹151 billion, a significant improvement from the previous forecast of ₹137 billion. This upgrade is accompanied by a surge in optimism around the company’s sales pipeline, with analysts now predicting a 21% annualized revenue growth to the end of 2026, exceeds the company’s historical growth rate of 7.4% per annum.

This growth rate is also faster than the 13% annual growth rate expected for similar companies in the industry. This upgrade is a result of a re-evaluation of the company’s prospects, with analysts increasing their confidence in the company’s ability to deliver strong growth.

This upgrade is seen as a positive development for the company, and investors may want to take a closer look at United Spirits. The company’s strong growth prospects and potential for long-term success make it an attractive option for investors. Furthermore, the company’s management team has a good track record of making smart business decisions, which is another positive sign.

In conclusion, this upgrade is a significant development for United Spirits, and it highlights the company’s strong growth prospects. Investors may want to consider adding the company to their portfolio, as it has the potential to deliver strong returns in the long term.

The report, titled “An Increase in Demand and Opportunities for Global Brandy Market 2025,” provides a comprehensive analysis of the Brandy market, including market size, market statistics, and competitive situation. The report highlights the current market scenario and presents a dynamic vision of the global market in terms of market size, growth factors, consumption, production volume, and CAGR value.

The report identifies the key players in the Brandy market, including United Spirits Limited, Pernod Ricard, Campari Group, Radico Khaitan, Hennessy, Tilaknagar Industries, Great Lakes Distillery LLC, Weissbrand Distilling Co., Caddell & Williams, Stark Spirits Distillery, and others. The report also provides a detailed analysis of the regional market, including North America, Europe, Asia-Pacific, South America, Middle East & Africa.

The report further explores the key business players along with their in-depth profiling. The report provides the following key benefits for stakeholders:

* The study represents a quantitative analysis of the present Brandy market trends, estimations, and dynamics of the market size from 2025 to 2032 to determine the most promising opportunities.
* Porter’s five forces study emphasizes the importance of buyers and suppliers in assisting stakeholders to make profitable business decisions and expand their supplier-buyer network.
* In-depth analysis, as well as the market size and segmentation, help you identify current Brandy market opportunities.
* The largest countries in each region are mapped according to their revenue contribution to the market.

The report provides a comprehensive analysis of the Brandy market, including key drivers, trends, growth factors, and restraints. It also provides a competitive landscape analysis, regional outlook, and key benefits for stakeholders. The report is a valuable resource for individuals and market competitors to predict future profitability and make critical decisions for business growth.

United Spirits, the Indian arm of Diageo, is set to close its 160-year-old manufacturing facility in Hyderabad, Telangana, due to “evolving market dynamics and ageing infrastructure”. The facility, which contributes 1.5% to the company’s revenue, is expected to close by July 2025, subject to statutory approvals. The decision is part of a multi-year supply chain agility program approved by the board of directors in 2023.

The company has issued a statement addressing the closure, stating that the facility has been operational for approximately 160 years and plays a crucial role in the region’s industrial landscape. However, it has faced significant challenges, including evolving market dynamics and ageing infrastructure, which have led to a review of its business strategies. The company assures that it remains committed to the welfare of its workers and will provide wages during the transition period.

The decision comes as United Spirits experiences sales growth, with a 7.5% increase in sales revenue for the nine months ending December 2024, driven by the growth of its prestige-and-above segment, which rose by 8.8%. Diageo’s organic sales also rose by 1% for the last six months of 2024, with revenue in India increasing by 6%.

Diageo’s business in India has been boosted by the growth of its prestige-and-above segment, driven by brands such as McDowell’s, Signature, and Royal Challenge, as well as Scotch sales, led by Black & White. The company has also restarted its business in Andhra Pradesh after a five-year hiatus, following the state government’s introduction of a new excise policy.

Overall, the closure of the Hyderabad facility is part of United Spirits’ efforts to adapt to changing market conditions and focus on areas of strength, while also ensuring the well-being of its workers.

ICICI Securities has issued a “buy” call on United Spirits, with a target price of Rs 1580. The current market price of United Spirits is Rs 1427.25. The company is a large-cap entity with a market capitalization of Rs 103,792.97 crore, operating in the beverages-alcoholic sector.

The company reported quarterly results for the period ended December 31, 2024, with a consolidated total income of Rs 3505.00 crore, a 20.95% increase from the previous quarter and a 14.76% increase from the same quarter last year. The company reported a net profit after tax of Rs 338.00 crore.

The company’s gross margin expanded by 130 basis points (bps) year-on-year (YoY) to 44.7%, driven by stable input inflation and productivity savings. Underlying EBITDA margin expanded by 69 bps YoY to 17.1%. The company’s appraisal investment rate remains healthy at 11%.

ICICI Securities has cut its earnings estimates for FY25E and FY26E by 3% and 5%, respectively, and models revenue, EBITDA, and PAT CAGR of 10%, 15%, and 15% over FY24-27E, respectively. The company maintains an “add” call with a DCF-based revised target price of Rs 1580, down from Rs 1480 earlier. The company’s promoter holding is 56.67%, while FIIs and DIIs own 15.93% and 13.52%, respectively.

However, there are significant downside risks, including potential tax hikes and a ban on spirits in certain states. Therefore, investors must consult their financial advisors and seek independent advice before making any investment decisions.

United Spirits Limited, the largest spirits company in India and a part of Diageo Plc, has reported a decline in its consolidated net profit for the December 2022 quarter. The company’s net profit fell 4.29% year-on-year to ₹1,246.5 crore, as compared to ₹1,305.9 crore in the same period a year ago.

The decline in net profit is attributed to a 4.6% decrease in consolidated revenue from operations to ₹7,144.3 crore, compared to ₹7,499.4 crore in the corresponding quarter a year ago. This decline in revenue is due to a 3.5% decrease in domestic sales and a 6.2% decline in exports.

Despite the decline in revenue, the company’s operating profit remained stable, increasing 1.2% to ₹2,467.6 crore, driven by a 12.9% increase in operating expenses. The company’s gross margin improved 130 basis points to 34.6%, while its operating margin remained stable at 34.5%.

The company pointed out that the quarter was impacted by a 5.5% decrease in sales volumes due to the ongoing Omicron wave and increased competition in the market. However, the company believes that its portfolio of brands, which includes Johnnie Walker, McDowell, and Antiquated, will help it to recover from the current challenges.

The company also reported a significant improvement in its working capital cycle, which has led to an 18.2% decrease in inventory days and a 12.4% decrease in debtor days, contributing to an 11.3% decrease in working capital days.

In terms of the outlook, the company expects the spirits market to recover gradually as the COVID-19 situation improves and consumer spending increases. The company believes that its strong brand portfolio, effective cost management, and expected increase in sales volumes will help it to recover and grow in the future.

Overall, the decline in United Spirits’ profits is a temporary setback for the company, which is expected to recover as the spirits market improves and consumer spending increases. The company’s strong brand portfolio and cost management strategies position it well to navigate the current challenges and achieve future growth.

United Spirits, the Indian arm of Diageo, has announced that Praveen Someshwar, current CEO of HT Media, will take over as Managing Director and CEO on April 1. He will replace Hina Nagarajan, who is set to join Diageo’s global executive committee. Someshwar has five years of experience as CEO of HT Media and 24 years at PepsiCo, holding various senior roles. The leadership change comes amid scrutiny from federal and local agencies regarding allegations of suspicious payments and irregularities, which predated Nagarajan’s tenure. Someshwar will join the company on March 1 and formally take over on April 1, pending regulatory approvals.

United Spirits, a major Indian spirits manufacturer, has received a notice from the Kerala government proposing a fine of ₹1.13 crore (approximately $155,000 USD) for alleged non-compliance with Goods and Services Tax (GST) regulations. The notice is related to the company’s alleged failure to deposit the applicable GST on its sales across various states, including Kerala, between April 2017 and March 2019. United Spirits has been directed to rectify the discrepancies and pay the specified fine within a stipulated timeframe. The notice also requires the company to provide detailed information and documentation to support its GST returns. If United Spirits fails to comply with the notice, it may face penalties, including interest, penalties, and even a complaint to a quasi-judicial authority for the purposes of recovering the tax. The fine is limited to the period from April 2017 to March 2019, and the company has a window of 15 days to respond to the notice.

United Spirits, a leading Indian spirits company, has received a Goods and Services Tax (GST) notice from the Kerala Government for an amount of ₹1.13 crore (approximately $150,000). The notice is reportedly related to alleged undervaluation of inputs and underpayment of GST on certain transactions in the 2017-18 financial year. According to industry sources, the company has been asked to pay the demanded amount, along with interest and penalty, by the end of next month. If the company fails to comply, it may face strict action, including attachment of its assets, cess action, and even criminal proceedings. The exact reasons behind the notice are not publicly disclosed, but it is believed to be linked to an audit carried out by the Kerala Commercial Taxes Department on the company’s GST returns. United Spirits is part of the UB Group and has its operations in various states, including Kerala.

Dolat Capital has published a Q3 results preview, stating that AlcoBev’s growth will remain inline with its peers. According to Dolat Capital, AlcoBev’s revenue growth will be driven by a low single-digit increase in volume growth and a mid-to-high single-digit increase in price growth. Additionally, the asset light business model of these companies will help maintain operating leverage, resulting in a sharp improvement in profit after tax (PAT) growth.

Dolat Capital has also highlighted Radico and United Spirits as its top picks in the beverage space. Radico, with its diverse portfolio of brands, is expected to benefit from its presence in the premium segment, while United Spirits, with its dominant market share in the spirits space, is poised for long-term growth. In conclusion, Dolat Capital expects AlcoBev to report Q3 numbers in line with its peers, with Radico and United Spirits being top picks in the space. They also believe that both companies have a strong potential for medium to long-term growth.