United Spirits Share Price Target 2026: Even before the Indian Premier League (IPL) has officially kicked off, its ripple effects are already being felt in the Indian equity markets. The spotlight has turned to the high-profile stake sale of Royal Challengers Bengaluru (RCB) by United Spirits, sparking significant investor interest.
The Nifty Next 50 company has divested its entire 100 per cent stake in Royal Challengers Bengaluru, including both its IPL and WPL franchises, for Rs 16,660 crore (approximately USD 1.78 billion) in an all-cash transaction.
Here’s what brokerages have to say on United Spirits following the RCB stake sale.
Brokerages on United Spirits post RCB stake sale
1. Elara Capital sees 30% upside
Elara Capital has upgraded United Spirits to a BUY rating, raising its target price to Rs 1,650 from Rs 1,500. This reflects an upside of 29.7 per cent from the current price level.
United Spirits’ upgrade is largely driven by the significant value unlocking from its stake in Royal Challengers Bengaluru (RCB), which is estimated at around Rs 166 billion. Post-tax, the company is expected to receive a net cash inflow of approximately Rs 141 billion, strengthening its balance sheet and providing room for enhanced shareholder returns.
Elara Capital also expects United Spirits to potentially announce a special dividend within the next 3 to 6 months, supported by this cash inflow.
The brokerage remains constructive given steady growth expectations, with revenue projected to grow at a CAGR of 10 per cent to 12 per cent and EBITDA margins likely to improve to 17–18 per cent.
2. Nuvama Wealth recommends ‘BUY’
Nuvama Wealth has issued a BUY call on the stock, as the brokerage believes that the company’s 100 per cent stake sale in RCB is likely to unlock significant capital from a low-contribution asset while sharpening its focus on core alcoholic beverage operations.
The brokerage views this exit as strategically positive, noting that owning a sports franchise offers limited synergy for a consumer liquor company. Brand visibility can still be maintained through sponsorships without capital lock-in, allowing the company to focus more on premiumisation, margin expansion, and core category growth in the alcobev segment.
Echoing the view of Elara Capital, Nuvama also expects the company to announce a one-time dividend within the next six months (subject to approval). This move is likely to improve capital allocation, enhance return ratios, and bring greater strategic clarity.
According to Nuvama, in the near term, performance may remain soft, with Q4FY26 impacted by taxation changes in Maharashtra. However, the outlook improves from FY27 onwards, supported by favourable macro tailwinds. Benefits from the UK FTA (expected from Q2FY27) could lower Scotch costs, while easing crude prices may reduce input costs such as glass and ENA, supporting margin expansion.
United Spirits Share Price
As of 10:20 am, shares of the company were trading 2.9 per cent lower, down Rs 37.7 at Rs 1,272.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
