United Breweries lifts profit to 134.81 crore rupees as premium volumes grow 38%
Key Facts
United Breweries reported consolidated net profit of 134.81 crore rupees in the September 2026 quarter, compared with 46.34 crore rupees a year earlier, according to results reported by Business Standard, citing PTI. The announcement came on October 27, ahead of an investor call scheduled for the following day. Revenue from operations rose 23.7% year on year to 4,623 crore rupees, from 3,737.31 crore in the year-earlier period. Total income also increased 24.31% to 4,664.33 crore rupees. The figures put volume and sales growth at the forefront of the company's results, with profitability improving faster than revenue.
Volumes sold to distributors rose 16% during the quarter, while inventory levels remained below those in the corresponding period a year earlier, the company said. It said net sales grew 24%, driven by volume growth, structural price increases and a shift toward premium products, alongside an improved geographic and operating mix. Distributor sales growth reflects higher quantities entering the distribution network, while inventory remaining below the year-earlier level indicates that volume expansion was not accompanied by a greater buildup of stock. The company thus cited a combination of volume, pricing and product mix to explain the rise in net sales. Revenue from operations grew 23.7%, close to the 24% growth in net sales.
Premium products recorded volume growth of 38% in the September quarter. Heineken Silver volumes rose 67%, while Kingfisher Ultra volumes increased 44%, according to results data reported by Business Standard. Growth in the two brands was faster than the 16% increase in total volumes sold to distributors. The company said the shift toward premium products was among the drivers of net sales growth, alongside structural price increases and an improved geographic and operating mix. The figures show premium brands making a larger contribution to quarterly growth, though the reported results did not specify each brand's contribution to revenue or profit.
EBITDA grew 108% in the quarter, and its margin expanded by 480 basis points, according to the results. The company attributed the improvement to operating efficiencies and cost control, alongside growth in net sales and volumes. Total expenses rose 21.57% year on year to 4,481.66 crore rupees, below the 23.7% increase in revenue from operations. The gap between revenue and expense growth provides context for the improvement in operating profitability metrics, while the company attributed EBITDA gains to efficiency and cost control. The company said that "earnings before interest, taxes, depreciation and amortization grew 108%," with the margin improving by 480 basis points.
For the first half of fiscal 2026-27, consolidated total income rose 16.3% to 10,634.48 crore rupees. The first-half total provides a broader frame for the quarterly results, though it does not erase the difference between the pace of quarterly revenue growth and the increase in total income since the start of the fiscal year. In May, the company's management said on its fiscal 2026 fourth-quarter results call that India's beer sector had returned to growth of about 10%. It also pointed to intensifying competition and rising costs of participating in the market. Those comments provide earlier context for the current quarter, in which the company reported strong growth in premium product volumes.
The stock's performance diverged between the announcement session and the following day. It closed up 0.62% at 1,143.60 rupees on October 27, according to a Business Standard report published after the results announcement. On October 28, NDTV Profit reported that it rose 14.54% to 1,309.90 rupees. The larger move in the following session coincided with trading in the quarterly results, which showed higher profit and revenue and growth in premium brands. The share-price move alone does not establish that profit growth is sustainable or that margin improvement will continue. In its May call, the company had said pressure from energy, fuel and packaging costs would continue in the second half of the fiscal year, while it saw long-term growth opportunities in India's beer market, supported by demographics, consumers' growing preference for beer and the premiumization trend.