Bengaluru: United Spirits, the maker of McDowell’s No.1, Royal Challenge and Smirnoff, reported an 11% rise in net profit to Rs 463 crore for the June quarter. Higher earnings from its Royal Challengers Bengaluru (RCB) sports business offset weaker profitability in its core liquor operations.Revenue from operations rose 5% year-on-year to Rs 6,122 crore.In the liquor business, net sales increased 6% to Rs 2,703 crore despite overall volumes declining 3.4%. Sales from the Prestige & Above portfolio rose 10.1% to Rs 2,478 crore, accounting for nearly 92% of net sales.The sports business contributed a post-tax profit of Rs 226 crore, up from Rs 160 crore a year earlier.United Spirits has classified the sports business as a discontinued operation because it is in the process of selling Royal Challengers Sports, the subsidiary that owns and operates the RCB franchise. The accounting treatment reflects the proposed sale and does not affect the franchise’s operations.In March, the company’s board approved the sale of its entire stake in Royal Challengers Sports, owner of the RCB franchise, for Rs 16,663 crore, subject to regulatory approvals and customary adjustments. United Spirits said the Competition Commission of India has cleared the transaction, while an application has been filed with the Board of Control for Cricket in India. The deal is expected to close within 12 months of its announcement. Under accounting rules, the subsidiary’s current and prior-period earnings have therefore been reported separately from the continuing liquor business.The company’s Popular portfolio remained under pressure, with sales falling 17.5% to Rs 206 crore, primarily due to policy changes in Maharashtra and Karnataka.United Spirits also booked an exceptional charge of Rs 81 crore related to restructuring and its supply chain optimisation programme.“We have commenced fiscal 2027 on a strong note with double-digit growth in the Prestige & Above segment,” CEO Praveen Someshwar said.
