United Breweries (UBL) shares tumbled to a 52-week low of ₹1,382 on Wednesday following its Q4 FY26 results, before closing at ₹1,420.30. According to reports from The Hindu BusinessLine, the brewer reported a 3 per cent decline in net sales and a sharp 48 per cent drop in EBIT during the quarter, even as volumes grew 4.1 per cent. For the full year FY26, net sales grew 4 per cent YoY while PAT declined by 6 per cent YoY. However, gross margins improved to 45.4% (up 332 bps YoY) and profit after tax rose a modest 4 per cent.
As reported by The Hindu BusinessLine, UBL expects a ₹400 to ₹500 crore cost impact due to the West Asia conflict, with the biggest impact on glass bottles and imported raw materials. MD & CEO Vivek Gupta explained that the company cannot change pricing since it's highly regulated and must convince 30 different states and union territories. The company is working with regulators to discuss tax reforms and improve ease of doing business, particularly focusing on states like Telangana and Andhra Pradesh as key markets. UBL is also working with Madhya Pradesh for free movement of goods to other states.
According to the company's management, beer category volumes grew by almost 10 per cent during the quarter, with UBL's primary volumes growing 4 per cent and secondary volumes around 8 per cent. As reported by The Hindu BusinessLine, in 14 states, UBL's business is growing above 25 per cent, including Maharashtra where the category is growing above 20 per cent due to reforms and tax differentiation. Jharkhand retail becoming private increased transparency and distribution range, with the category growing more than 50 per cent. The company noted that 80 per cent of their business grew with category growth within that segment.
As reported by The Hindu BusinessLine, UBL's premium portfolio grew 21 per cent for the full fiscal year and 16 per cent last quarter, with Kingfisher back and brand power the highest in the last 10 years. The company is investing in capex and tie-ups with Soufflet Malt on malt availability, as well as a partnership with Crown Holdings, the world's top manufacturer of cans. Heineken Silver is performing well in markets including Goa, Maharashtra, Karnataka, and Kerala. The company is also working with 23 million youngsters coming to legal drinking age, of which 70 per cent want to try alcohol.
According to management comments reported by The Hindu BusinessLine, the company's priority is consumers and ensuring supply continuity during peak summer. The Karnataka government's progressive blueprint for excise policy is welcomed, with taxation based on ABV making low alcohol drinks like beer more affordable. UBL is investing in brand building, coolers, and stores while managing cash flow due to potential liquidity crunch. The company expects to work with regulators to unlock potential from 23 million youngsters coming to legal drinking age.
