United Breweries Reports Q1 FY27 Results: Sales Up 7%, EBITDA Improves Despite War Headwinds
United Breweries Limited (UBL), part of the Heineken Company, announced its unaudited financial results for the quarter ended June 30, 2026. The company reported growth across key metrics, noting that sales grew by 7% driven by volume increases and favorable geographic mix, while continuing to manage margin pressures caused by international events.The results highlight a focus on disciplined execution and strategic investment across India's brewing sector. UBL successfully commissioned a new canning line in Telangana as part of its future-proofing initiatives. The company also announced a strategic partnership with ABB in Punjab and completed the closure of the Ludhiana brewery, aligning with its North Grid optimization program.
Operational Performance Highlights
Key performance indicators for UBL showed robust increases:- Sell-out volumes increased by 13%.
- EBITDA improved to 10.9%, up from 6.5% in the previous quarter, despite a 300 basis point impact on the gross profit margin due to the Middle East war.
- Free Operating Cash Flow (FOCF) improved by 38% to ₹548 crore, supported by disciplined working capital management.
The company noted that premium volumes increased by 17%. Heineken Silver grew by 28%, and Kingfisher Ultra grew by 11% across India. Efforts undertaken over the past two years to localize production have allowed UBL’s premium margins to become accretive for the first time.
Financial Performance Summary (in Lakhs)
The performance figures are presented below, covering standalone results:| Particulars | Quarter ended June 30, 2026 | March 31, 2026 | June 30, 2025 | March 31, 2026 (Audited) |
|---|---|---|---|---|
| Revenue from operations | 5,91,745 | 4,40,614 | 5,37,888 | 17,45,621 |
| Total income | 5,96,809 | 4,41,396 | 5,38,983 | 17,50,084 |
| Total expenses | 5,74,348 | 4,37,195 | 5,14,237 | 16,99,426 |
| Profit before tax | 22,461 | 11,605 | 24,746 | 50,658 |
| Profit for the period/year | 16,639 | 10,167 | 18,371 | 41,316 |
| Total comprehensive income | 16,616 | 9,718 | 19,547 | 42,257 |
Management Commentary and Outlook
VIVEK GUPTA, CEO & MD, commented on the industry’s state, stating that "This has been a historic quarter for the industry as the beer revolution has started in India." He noted significant category growth in states such as Karnataka, Maharashtra, Jharkhand, and Andhra Pradesh, driven by policy reforms.Addressing future challenges, Gupta stated that he expects inflationary pressures on the cost base to persist amid an uncertain macroeconomic environment. The company remains committed to disciplined pricing, rigorous cost management, and driving productivity while maintaining long-term investment in the business.
UBL maintains a positive outlook for the Indian beer industry, driven by premiumization and favorable demographics. The company remains focused on strengthening its portfolio through innovation, improving cost efficiency, and advocating for policies that support sustainable growth.
UBL Stock Price Movement
Shares of United Breweries Limited slipped on Tuesday, shedding ₹6.40 or 0.44% from the previous close to settle at ₹1434.1. The stock traded a volume of 166,105 shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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