London, May 14, 2026, 17:29 BST
United Spirits, the Indian unit of Diageo plc, posted a 28% jump in consolidated profit for the fourth quarter on Thursday. That’s some relief for the Johnnie Walker and Guinness maker as softness lingers in its North American spirits segment. The company credited premium drinks for cushioning the impact of policy headwinds at home.
The clock’s ticking for Diageo. Dave Lewis, the new chief executive, is working to stabilize the group ahead of a full strategy update set for August. The latest sales numbers got a lift—thanks mostly to strong Guinness demand and distributors stocking up ahead of the FIFA World Cup, not from any real turnaround in the U.S. market.
India stands out as a relatively clean growth play in the portfolio, though it’s hardly straightforward. Diageo, meanwhile, continues to trim expenses, offload non-core businesses, and bring leverage down. The company reiterated last week that its Accelerate programme remains set to generate close to $300 million in savings by fiscal 2026.
United Spirits reported a consolidated profit of 5.39 billion rupees for the March quarter, up from 4.21 billion rupees last year, according to a stock-exchange filing. Revenue from operations landed at 68.55 billion rupees. The board is recommending a final dividend of 11 rupees per share for fiscal 2026.
United Spirits’ “Prestige & Above” lineup—its premium tier—posted a 5% increase for the quarter. CEO and Managing Director Praveen Someshwar called fiscal 2026 “resilient” for the company, highlighting “healthy double-digit growth” in the main portfolio, if you set aside the state market that took a hit. Rediff
The India results arrive as Diageo as a whole reports a mixed picture. Earlier this month, Diageo posted a 0.3% increase in third-quarter organic net sales—better than the projected drop—even as North America slid 9.4%.
Lewis has described North America as Diageo’s “biggest challenge” and argued the company’s lineup there needs to be sharper. According to Reuters, that’s already showing up as price reductions on tequilas like Casamigos, and Lewis is set to outline the full strategy in August. For now, investor Richard Scrope at VT Tyndall Global Select, which holds Diageo shares, says it’s still “early days,” but Lewis seems to be getting a handle on things. Reuters
Analysts aren’t ready to declare a turnaround just yet. RBC Capital’s James Edwardes Jones said the latest quarter offered some support for Lewis’ assertions, but cautioned it would be “flippant” to suggest the U.S. business is already on the mend. The Edge Malaysia
Competition isn’t letting up. In India, Reuters flagged increasing regulatory heat on Pernod Ricard, and on the global front, Pernod’s failed discussions with Brown-Forman took the threat of a heavyweight challenger off the table, yet left sluggish spirits demand unresolved.
Still, India’s signal only goes so far. United Spirits flagged that Maharashtra Made Liquor has been squeezing sales in both mainstream and budget segments there. Over in the U.S., Diageo saw a steep drop in spirits revenue last quarter, and Chinese white spirits failed to gain traction. Should American buyers continue shifting to cheaper options, a rebound driven just by India and Guinness may not be enough.
Diageo’s been trimming non-core assets. United Spirits is still waiting on green lights for the sale of its Royal Challengers Bengaluru cricket team, and Diageo’s planned stake sale in East African Breweries isn’t expected to close until the back half of calendar 2026.
Diageo shares ended the day up 0.94% in London, closing around 1,497 pence. The FTSE 100 gained 0.46%, based on delayed data. Not a huge jump. Investors are left weighing whether India’s strength in premium drinks actually means much, or if it’s just a bright spot in a company still facing plenty of issues.
