Shares of United Spirits climbed over 3 percent on June 10 to touch a five-month high, following a media report that suggested its parent company Diageo was considering selling its stake in IPL franchise Royal Challengers Bengaluru (RCB). However, United Spirits swiftly issued a clarification, categorically denying any such development.
In a regulatory filing with the BSE, United Spirits said the media reports were speculative in nature and there were no ongoing discussions regarding the stake sale. “This has reference to your email communication dated 10th June 2025 seeking clarification from the Company on media reports in relation to potential stake sale of RCB. The Company would like to clarify that aforesaid media reports are speculative in nature and it is not pursuing any such discussions,” United Spirits stated.
The clarification came after a report indicated that Diageo was in talks with advisors to explore a potential sale of part or all of the RCB franchise, seeking a valuation of up to ₹17,000 crore. The report also mentioned that no final decision had been made and Diageo might ultimately decide not to proceed with the sale.
RCB’s Rise and Diageo’s Journey
RCB, one of the most popular franchises in the IPL, was originally acquired by Vijay Mallya. After Kingfisher Airlines shut operations in 2012, Diageo took control of the team following its acquisition of Mallya’s spirits business. In a historic moment this season, RCB clinched their first-ever IPL title, defeating Punjab Kings in a closely contested final by six runs.
Despite the off-field buzz, United Spirits shares benefited from positive investor sentiment, aided in part by the company’s strong financial performance in the March quarter.
Q4 Performance and Dividend Payout
United Spirits posted a 74.7 percent year-on-year surge in net profit for Q4FY25, reaching ₹421 crore, up from ₹241 crore in the year-ago period. Revenue rose 8.9 percent to ₹3,031 crore, while EBITDA increased 37.7 percent to ₹460 crore. Operating margins improved significantly to 15.2 percent from 12 percent a year ago.
The board recommended a final dividend of ₹8 per equity share for FY25, subject to shareholder approval. CEO & Managing Director Praveen Someshwar said, “Despite a challenging demand environment, we delivered 13.2% net sales value (NSV) growth for the Prestige & Above (P&A) segment in Q4FY25 and 9.9% growth for FY25.”
HSBC MF highlighted that resumed sales in Andhra Pradesh after a five-year hiatus contributed meaningfully to the company’s top line. The premium alcohol segment continued to drive volume and profitability growth.
Recently, JPMorgan upgraded United Spirits to ‘Overweight’ from ‘Neutral’, raising its target price to ₹1,760 from ₹1,415. The brokerage cited strong earnings momentum and highlighted the growth potential of the Prestige and Above portfolio. JPMorgan also pointed to favorable regulatory trends in states such as Andhra Pradesh, Uttar Pradesh, Madhya Pradesh, and Jharkhand, which are enhancing investor sentiment.
Stock Trend and Market Sentiment
United Spirits’ stock hit an intraday high of ₹1,644 on June 10, inching closer to its 52-week high of ₹1,700 recorded in January 2025. The stock has rebounded strongly, gaining nearly 33 percent from its 52-week low of ₹1,236, seen in June 2024.
In terms of monthly performance, the scrip has advanced 5.5 percent in June so far, following a 3 percent decline in May. It had gained 11.6 percent in April and 9 percent in March, after falling 12.4 percent in January and 10 percent in February. Over the past year, the stock has returned 22 percent to investors.
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