United Spirits Rallies as JPMorgan Upgrades Rating, Hikes Target Price to ₹1,760

On June 3, United Spirits saw its stock price climb nearly 2 percent following a positive recommendation from JPMorgan Chase. The company’s shares ended the day at Rs 1,578 each on the NSE.

JPMorgan raised its rating for the alcoholic beverage company from ‘Neutral’ to ‘Overweight’.

Along with this, the brokerage firm also revised the target price for the stock upward to Rs 1,760 per share from its earlier projection of Rs 1,415. This latest target price signals an upside potential of over 11.5 percent from the current market level of Rs 1,578 per share.

EBITDA Estimates Revised Upward

In its note, as reported by CNBC Awaaz, JPMorgan revised its EBITDA forecasts, increasing estimates by 3 percent for the financial year 2026 and by 7 percent for 2027. The firm found the stock appealing, particularly after the earnings release.

The ‘Prestige and Above’ segment, which plays a key role in the company’s growth, was highlighted by the brokerage as offering strong growth prospects.

JPMorgan also pointed to positive regulatory outcomes in states such as Andhra Pradesh, Uttar Pradesh, Madhya Pradesh, and Jharkhand as contributing factors for its optimistic outlook.

Strong Q4 FY25 Results Boost Sentiment

United Spirits reported a net profit of Rs 421 crore in the fourth quarter of FY25, showing a significant growth of nearly 75 percent compared to the Rs 241 crore profit recorded in the same quarter the previous year.

Revenue from operations for Q4 FY25 reached Rs 6,634 crore, reflecting an on-year rise of nearly 2 percent. Meanwhile, EBITDA grew by nearly 38 percent year-on-year to Rs 460 crore in the same period.

The company’s stock has gained over 3 percent over the past five days. However, it remains down by about 5 percent in 2025 to date.

Brokerage Cites Growth Potential in Premium Segment

United Spirits shares rose 2.18 percent to Rs 1,583 after a prominent foreign brokerage changed its rating to ‘Overweight’ from ‘Neutral’ and lifted the target price to Rs 1,760 from Rs 1,415.

This shift in rating reflects the brokerage’s enhanced confidence in the company’s earnings path, backed by increased margin visibility and regulatory advantages.

The firm also adjusted its EBITDA estimates upward by 3 percent for FY26 and 7 percent for FY27, supported by a more optimistic growth outlook for United Spirits’ Prestige & Above range.

The report also emphasized supportive developments in regulation, such as the reopening of operations in Andhra Pradesh, retail network expansion in Uttar Pradesh, excise reforms in Madhya Pradesh, and the privatization of liquor sales in Jharkhand.

Growth Driven by Premium Segment and Market Expansion

United Spirits, among India’s leading beverage alcohol firms, recorded a standalone net profit increase of 17.44 percent to Rs 451 crore in Q4 FY25, up from Rs 384 crore in the same quarter of FY24.

The revenue from operations (excluding excise duty) in Q4 FY25 was Rs 2,946 crore, registering a 10.50 percent year-on-year growth.

This performance was credited to the continued strength of the company’s portfolio despite a challenging consumer environment, and due to a favourable base effect as operations resumed in Andhra Pradesh in September 2024 after a five-year break.

The Prestige & Above segment was particularly noteworthy, accounting for 87.7 percent of the company’s net underlying sales in the fourth quarter of FY25.