United Spirits Shares in Focus; To Close Hyderabad Manufacturing Unit by July 2025

United Spirits plans to shut down its Hyderabad manufacturing unit by July 2025, contributing 1.5% to annual revenue. This move is part of a broader supply chain agility program approved in January 2023, the company said in a press release on the stock exchanges.

Overview of the Manufacturing Unit Closure Plan

United Spirits Limited has disclosed its plan to close its manufacturing unit located in Nacharam, Hyderabad, by July 31, 2025. This closure is part of the company’s multi-year supply chain agility program approved by its Board of Directors in January 2023.

The decision was previously mentioned in the company’s quarterly financials for the period ending December 2022. The unit contributed 1.5% to the company’s revenue in FY 2023-24.

The company also plans to transfer its excise license issued by the Telangana Prohibition & Excise Department, which will enable the closure of operations at the facility, subject to necessary statutory approvals.

Q3 FY25 Financial Highlights

United Spirits reported a strong performance for Q3 FY25, with its standalone net profit rising by 36.31% to ₹473 crore compared to ₹347 crore in the same quarter last year. Revenue from operations, excluding excise duty, stood at ₹3,432 crore, reflecting a 14.82% year-on-year growth.

This increase was driven by strong consumer demand during the festive season and rapid expansion in Andhra Pradesh.

The Prestige & Above segment accounted for 89.2% of net sales during the quarter, marking an increase of 1 percentage point from the previous year. This segment’s net sales grew by 16.1%. Meanwhile, the Popular segment contributed 9.7% of net sales, with a 9.6% growth during the period.

The company’s profit before tax surged 35.86% to ₹621 crore, up from ₹457 crore in Q3 FY24. EBITDA also saw a notable increase of 19.75%, reaching ₹588 crore. The EBITDA margin improved to 17.1%, up from 16.4% in the prior year, while gross margin rose to 44.7%, an increase of 131 basis points.

United Spirits, known for its portfolio of renowned brands such as McDowell’s No.1, Royal Challenge, and Signature, is also the largest spirits manufacturer in India, producing and distributing around 60 million cases annually.

Share Price Performance

As of February 6, 2025, United Spirits Limited’s share price traded at ₹1,449.50 at 10:00 AM on the NSE, reflecting a gain of ₹7.50 or 0.52% from its previous close of ₹1,442. The stock opened at ₹1,451.90 and reached a high of ₹1,458.80 during the session. The low for the day was ₹1,443.40.

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