# 1. Financial Performance ## A. Key Figures * **Consolidated NSV:** **₹3,694 Cr** Q3 (+7.6%) · **₹9,888 Cr** 9M (+9.4%) * **Standalone NSV:** **₹3,683 Cr** Q3 (+7.3%) · **₹9,402 Cr** 9M (+9.0%) * **Gross Profit:** **₹1,728 Cr** Q3 (+6%) · **₹4,342 Cr** 9M (+12%) * Gross Margin: 46.9% Q3 (+219 bps) · 46.2% 9M (+142 bps) * **EBITDA:** **₹599 Cr** consolidated Q3 (+5%) · **₹1,903 Cr** consolidated 9M (+7%) * **Underlying EBITDA:** **₹618 Cr** standalone Q3 (+1%) · **₹1,745 Cr** standalone 9M (+4%) * **PAT:** **₹529 Cr** standalone Q3 (+8%) · **₹1,259 Cr** standalone 9M (+7%) ## B. Revenue Growth * **Resilient Standalone Growth:** Q3 sales rose at a **3% pace** despite volume decline and adverse policy impacts in Maharashtra, with strength in premium portfolio segments. * **Volume-Mix Divergence:** Q3 standalone NSV grew **3% on flat volume**, indicating **positive pricing and mix shift**, though offset by lapping prior-year retail pipeline fill in Andhra Pradesh. * **Gross Revenue Expansion:** Gross revenue increased **3% in Q3** and **4% in 9M**, reflecting underlying demand momentum ahead of trade-offs in net realization. ## C. Gross Margin * **Strong Margin Expansion:** Gross margin rose **219 bps YoY in Q3**, driven by **premiumization, pricing flow-through, and productivity**, with commodities largely stable excluding bulk scotch. * **Underlying Improvement:** Excluding one-off tax impact, underlying gross margin expanded **179 bps in 9M**, confirming structural cost and mix benefits. ## D. EBITDA & Profit * **EBITDA Growth with Margin Pressure:** Standalone EBITDA grew **8% in 9M**, with **underlying EBITDA margin expanding 56 bps**, despite **higher A&P spends** weighing on reported margin in Q3. * **Profitability Momentum:** PAT grew **7–8% in 9M** with **margin expansion to 4%**, supported by gross profit flow-through and lower tax expense. * **Cost Discipline:** Staff cost as % of sales declined, while **marketing spend increased to 6% of sales in 9M**, reflecting strategic brand investment. * **One-Off Impacts:** Exceptional items in 9M included **Labour Code-related costs** and **employee severance**, partially offset by gains from asset sales under Supply Agility Program. --- # 2. Volume & Pricing Trends ## A. Key Figures * **Total Volume:** **17.57 M cases** Q3FY26 (-3.2%) · **49.16 M cases** 9MFY26 (+4.0%) * **P&A Volume:** **14.62 M cases** Q3FY26 (-2.0%) * **Popular Segment Volume:** **2.95 M cases** Q3FY26 (-9.0%) ## B. Segment Volume Trends * **Diverging Segment Performance:** P&A segment showed relative stability with near-flat volume, while Popular segment faced sharper decline, indicating softness in value-tier demand. * **Nine-Month Recovery:** Despite Q3 dip, total volume expanded in the first nine months, suggesting underlying demand resilience and partial recovery from prior-year disruptions. --- # 3. Segment & Portfolio Performance ## A. Key Figures * P&A NSV: **₹8,407 Cr** 9MFY26 (+9.8%) · **₹3,316 Cr** Q3FY26 (+8.2%) * **Popular NSV:** **₹847 Cr** 9MFY26 (+4.7%) · **₹318 Cr** Q3FY26 (–4.6%) * **Other NSV:** **₹148 Cr** 9MFY26 (–9%) · **₹49 Cr** Q3FY26 (+40%) * **Standalone NSV:** **₹9,402 Cr** 9MFY26 (9.0% YoY) * **Total NSV (9MFY26):** **₹9,888 Cr** (+9.4% YoY) ## B. P&A Performance * **Resilient Premium Growth:** Prestige & Above segment delivered strong double-digit volume growth and expanded share by **7 ppts** in 9MFY26, driven by innovation and premiumization in Rest of India. * **Market Share Expansion:** P&A’s net sales share rose to **4%** in 9MFY26 and **0%** in Q3FY26 (up **8 ppts YoY**), reflecting successful brand execution despite regulatory headwinds. * **Strategic Investment Continuity:** Management emphasized sustained investments in brands and go-to-market capabilities to capitalize on premium segment momentum. ## C. Popular Segment * **Volume Pressure in Key Market:** Popular segment declined in Q3FY26 due to **Maharashtra policy impact**, despite full-year growth supported by re-entry into Andhra Pradesh. * **Share Erosion:** Segment’s sales mix contracted by **4 ppts** in 9MFY26 and **1 ppt** in Q3FY26, highlighting structural challenges in mass-tier demand. ## D. Other Brands * **Rebound in Quarterly Performance:** Other brands surged in Q3FY26 with **40% NSV growth**, reversing prior-year declines and signaling recovery in niche and imported portfolios. * **Portfolio Depth:** Company continues to scale global and homegrown premium labels, including **Godawan**, an artisanal Indian single malt, enhancing long-term brand equity. --- # 4. Manufacturing & Capacity ## A. Facility Footprint * **Headline:** Diageo India operates one of the largest alcobev production footprints in the country with **34 manufacturing facilities** nationwide. --- # 5. Input Cost & Regulatory Risks ## A. Key Figures * **Excise Duty:** **₹4,245 Cr** Q3 FY26 (vs. ₹4,299 Cr Q3 FY25) · **₹11,541 Cr** 9M FY26 (vs. ₹11,604 Cr 9M FY25) ## B. Excise Duty Impact * **Stable Regulatory Cost Base:** Excise duty burden remained largely flat year-on-year, reflecting consistent tax outflows despite volume or pricing shifts. --- # 6. Guidance & Outlook ## A. Key Figures * A&P Re-investment Rate: 14.0% of net sales (Q3/FY26) · 10.6% of net sales (9M/FY26) * **Marketing Spends:** **₹516 Cr** in Q3FY26 (+36% YoY) · **₹995 Cr** in 9MFY26 (+23% YoY) ## B. Dividend Update * **No Interim Payout:** Board approved **INR 0 per share** interim dividend, prioritizing capital retention. ## C. A&P Reinvestment * **Strategic Spend Discipline:** A&P investment maintained at targeted levels, with increased spending reflecting focused allocation to premium segments and core trademarks. * **Accelerating Marketing Investment:** Marketing spends rose at a **double-digit pace** year-to-date, supporting brand equity and growth momentum.