United Spirits share price in focus: Firm announces sale of IPL franchise RCB in ₹16,660 crore deal to consortium

In a regulatory filing, USL said pursuant to the meeting of its Board of Directors, it has entered into definitive agreements for the sale of the 100% equity stake held in its wholly owned subsidiary Royal Challengers Sports Private Ltd (RCSPL) to a consortium comprising Aditya Birla Group (ABG), The Times of India Group (Times), Bolt Ventures (Bolt), and Blackstone’s perpetual private equity strategy, BXPE (Blackstone).

“The all-cash transaction is for a total consideration of ₹16,660 crore,” USL, part of multinational alcoholic beverages company Diageo, added.

RCSPL owns and operates Royal Challengers Bengaluru (RCB) franchises that participate in the Indian Premier League (IPL) and Women’s Premier League (WPL), it added.

What the CEO said

Commenting on the transaction, USL MD & CEO Praveen Someshwar said this transaction marks an important milestone for the company “as we sharpen focus on our core beverage alcohol business to unlock its true potential with sustained growth and to continue delivering on long-term value creation for our stakeholders.”

RCB has grown into the most prominent and commercially successful franchise in the IPL and WPL, he said, adding it has built a globally recognised brand and a passionate fan base.

“We are excited for the future of RCB under the stewardship of the new owner. As sports enter a new phase of growth in India and globally, we believe this is in the best interest of the franchise and our stakeholders,” said Someshwar.

What the consortium said

The acquiring consortium stated, "RCB's championship-winning culture, its deep connection to Bengaluru, and one of the most passionate fanbases in world sport make this an extraordinary opportunity. We are committed to taking RCB to new heights, on the pitch and beyond.”

The acquiring consortium comprises the Aditya Birla Group, The Times of India Group, Bolt Ventures (a private investment platform of David Blitzer, one of the world's most prominent sports investors), and Blackstone, the world's largest alternative asset manager.

In November of last year, USL announced that it would conduct a strategic review of its investment in Royal Challengers Sports Private Limited (RCSPL), the entity that owns the IPL T20 team, the Royal Challengers Bangalore.

RCSPL’s business comprises ownership of the “Royal Challengers Bengaluru (RCB)” franchise teams that participate in the Men’s Indian Premier League (IPL) and Women’s Premier League (WPL) cricket tournaments hosted by the Board of Control for Cricket in India (BCCI) annually.

United Spirits Q3 FY26 earnings

Diageo-controlled liquor maker United Spirits reported a 24.77% rise in its consolidated net profit to ₹418 crore for the December quarter of FY26 (Q3 FY26).

The company had posted a net profit of ₹335 crore in the October-December quarter a year ago, according to a regulatory filing by United Spirits Ltd (USL).

Its revenue from operations rose 2.71% to ₹7,942 crore in the December quarter under review. It was ₹7,732 crore in the corresponding period of the previous fiscal.

USL's total expenses stood at ₹7,442 crore, up 2.56% in the December quarter.

The net sales value (NSV) of USL was ₹3,683 crore, up 7.3% in the third quarter of FY26.

This was "driven by solid performance in the top half of the portfolio, partly offset by the adverse policy-led impact in Maharashtra and lapping the one-time retail pipeline fill in Andhra Pradesh in the prior year comparative," said USL in its earnings statement.

Its EBITDA was ₹599 crore, up 5.5% in Q3/FY26, driven by the standalone business of the company, it added.