Johnnie Walker maker Diageo India spends Rs 238 crore on ads in June quarter as profit declines
Diageo India's profit declined from Rs 485 crore in Q1 FY2025 to Rs 417 crore in Q1 FY26.
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Beverage brand Diageo India on Wednesday announced its quarterly earning for the quarter ended on 30 June 2025. The maker of Johnnie Walker, Smirnoff, and Captain Morgan brands reported a 14% decline in profit year-on-year.
The liquor firm's profit declined from Rs 485 crore in Q1 FY2025 to Rs 417 crore in Q1 FY26.
The company's EBITDA was at Rs 644 crore, down 9.7% largely due to a one-off indirect tax item impact and relatively higher advertisement & promotional expenses in the standalone business.
United Spirits Limited's the subsidiary of Diageo India, witnessed a 2.79% surge in its expenses while its revenue from operations rose marginally in Q1 YoY--from Rs 6,238 crore in Q1 FY25 to Rs 6,295 crore in Q1 FY2026.
Diageo India's advertisement and sales promotion expenditure rose by 36% to Rs 238 crore in Q1 FY26 compared to Rs 175 crore in the corresponding quarter year ago period.
Additionally, the net sales value (NSV) climbed to Rs 3,021 crore, up 9.4% versus the same period prior year, driven by the 8.4% growth in the standalone business and the 15.7% reported growth of the sports business housed in the 100% subsidiary Royal Challengers Sports Pvt Ltd (RCSPL).
“We delivered a resilient quarter with the Prestige & Above portfolio sustaining its growth momentum while cycling a high prior year base. The quarter also marked the completion of the Nao Spirits acquisition," Praveen Someshwar, CEO & Managing Director, said.
"Looking ahead, we remain focused on our circle of control to lead the next wave of category growth through sharper portfolio, tailored consumer engagement, and revenue growth management," Someshwar added.
