United Breweries Q3 Net Profit More Than Doubles to ₹81.15 Crore
Beer manufacturer United Breweries Ltd (UBL) has announced a remarkable financial performance for the third quarter of fiscal year 2026, with consolidated net profit skyrocketing to ₹81.15 crore. This represents a substantial increase of over 111% compared to the ₹38.52 crore profit recorded in the same quarter of the previous fiscal year. The impressive profit surge is primarily attributed to strategic growth in the company's premium product portfolio and significant margin improvements.
Revenue Declines Amid Challenging Market Conditions
Despite the profit boost, UBL faced headwinds in its top-line performance. Revenue from operations experienced an 11.05% year-on-year decline, dropping to ₹3,936.99 crore from ₹4,426.55 crore in the corresponding period last year. The company cited an unusually cold winter season as a key factor negatively impacting the beer category during Q3 FY26. Overall sell-in volume decreased by 1.3% during the quarter, though year-to-date volume growth remained positive at 2.6%.
Regional Volume Performance Shows Mixed Results
The quarterly volume performance varied significantly across different geographical markets. Northern regions, including Rajasthan, Uttar Pradesh, Haryana, Delhi, and Punjab, witnessed a substantial 16% decline in volumes. Eastern and Southern markets each reported a 2% decrease in volume. However, Western markets comprising Maharashtra, Madhya Pradesh, Chhattisgarh, and Daman demonstrated strong growth with a 20% increase in volume.
Specific state-level performance revealed that volume declines were mainly driven by Telangana, Rajasthan, and Karnataka markets, partially offset by positive performances in Andhra Pradesh and Maharashtra.
Strategic Initiatives Drive Margin Improvement
UBL's underlying price mix benefited significantly from strategic price increases implemented in key states including Telangana, Rajasthan, and Uttar Pradesh. The company reported that net sales grew by 4% during the quarter, driven by premiumization efforts and positive price-mix adjustments, with premium volumes outperforming the overall portfolio.
The gross profit margin reached 45.3% in Q3 FY26, marking the highest level in three years. This margin expansion was primarily driven by favorable price mix outcomes, portfolio localization strategies, and operational excellence initiatives.
Financial Metrics and Cost Management
Total expenses for United Breweries during the December quarter stood at ₹3,797.06 crore, representing a 12.7% reduction compared to the previous year. Total income for the quarter declined by 11.01% to ₹3,948.08 crore, consistent with the revenue trend.
Future Outlook and Market Performance
Looking ahead, UBL emphasized its continued focus on revenue management and cost initiatives to drive further margin accretion. The company remains committed to strategic investments behind its brand portfolio and operational capabilities to sustain growth momentum.
On the trading front, shares of United Breweries Ltd closed at ₹1,620.80 per share on the Bombay Stock Exchange, registering a modest gain of 0.34% from the previous closing price. The company, which operates under the control of Dutch multinational brewing giant Heineken NV, continues to navigate market challenges while capitalizing on premiumization trends in the Indian beer industry.
