What happened? USL, Diageo''s majority owned India subsidiary, has reported it fiscal Q325 (Dec-Q) results. BNPP Exane View: We note that the +14.8% LFL sales growth from USL (Diageo India) in the Dec-24 quarter came in ahead of Visible Alpha consensus (+11% from 5 est.). This implies growth of c.+7% in Diageo''s fiscal H125 (ending Dec) which compares to our own Diageo India LFL sales growth est. of +6%. From a profits perspective, we note that EBITDA for the quarter came in c.+3% ahead of VA cons. Overall, we view the update from USL as a modest positive read-across for Diageo. Summary of key figures (by USL fiscal quarter) / Q325 profitability: Gross margin: +131bp; underlying EBITDA margin: +71bp. Note: marketing as % of sales remained at c.11%, unchanged YoY. Context We estimate that USL (Diageo India) accounted for c.6% of Diageo''s FY24 sales.