Beer maker United Breweries Ltd on Tuesday (July 22) reported a 6.4% year-on-year (YoY) increase in standalone net profit at ₹184 crore for the first quarter of FY26 over ₹173.3 crore in Q1FY25. The CNBC-TV18 poll had predicted a profit of ₹200 crore.
The company’s revenue from operations was up 15.8% to ₹2,863 crore from ₹2,473 crore a year ago, topping the CNBC-TV18 poll’s estimate of ₹2,750 crore.
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At the operating level, EBITDA grew 9% YoY to ₹311.17 crore in the June quarter over ₹285.6 crore, below the projected figure of ₹322 crore for the quarter under review.
The EBITDA margin stood at 10.8% compared to 11.5% in the corresponding period in the previous fiscal. The CNBC-TV18 poll had predicted a margin of 11.7%.
United Breweries reported 11% volume growth in Q1, driven by a 46% surge in its premium portfolio, resulting in estimated market share gains both overall and in the premium segment. Net sales rose 16% YoY, supported by this volume growth along with pricing and premiumisation efforts.
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Gross profit grew 14%, with gross profit margin at 42.5%, down 50 basis points, but reflecting positive underlying developments. EBIT rose 10% during the quarter, with EBIT margin at 9%, as the company continued to invest in its brands, organisational capabilities, and supply chain.
The premium portfolio’s 46% growth was led by strong performance from Kingfisher Ultra, Amstel Grande, and Heineken® Silver. Following successful launches in Maharashtra, West Bengal, and Uttar Pradesh, Amstel Grande has now been introduced in Karnataka, targeting a consumer base inclined towards new, international, and premium offerings.
Capital expenditure for the quarter stood at ₹136 crore, up ₹89 crore from the same period last year, focusing on commercial and supply chain initiatives to support future growth. As part of its network optimisation strategy, United Breweries closed its Mangalore unit, consolidating capacity in Karnataka while scaling operations at its Mysore brewery to enhance supply chain efficiency.
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The company remains confident in its long-term growth outlook, supported by rising disposable incomes, favourable demographics, and an accelerating trend toward premiumisation in India’s beer market.
The results came after the close of the market hours. Shares of United Breweries Ltd ended at ₹2,040, up by ₹18 or 0.89%, on the BSE.
