United Breweries Q1 FY 2026-27: Profit Falls 9.64% Despite 10% Revenue Growth

United Breweries Ltd., the Heineken NV-controlled beer maker, reported a 9.64% decline in consolidated net profit to ₹166.28 crore for the June quarter of FY27, down from ₹184.03 crore in the same period last year, as higher expenses and the ongoing West Asia conflict weighed on margins.

Revenue from operations, however, rose 10% to ₹5,919.44 crore compared with ₹5,380.78 crore a year earlier, supported by continued double-digit growth in the beer category.

After the results were announced, United Breweries shares were trading at ₹1,417.81, down 1.14%, at 12:41 PM, on 5 August on the National Stock Exchange (NSE).

Key Financial Highlights Of United Breweries Q1 FY 2026-27

• Consolidated net profit: ₹166.28 crore, down 9.64% year-on-year

• Revenue from operations: ₹5,919.44 crore, up 10% year-on-year

• Total expenses: ₹5,745.66 crore, up 11.7% year-on-year

• Total income including other income: ₹5,970.15 crore, up 10.7% year-on-year

• Sell-in volumes: up 9%

• Sell-out volumes: up 13%

Volume Growth And Premiumisation Trends

According to the company, sell-in volumes rose 9% and sell-out volumes rose 13% during the quarter, even as inventory levels were deliberately reduced by 20% to strengthen cash flow. Net sales grew over 7%, aided by volume growth, price increases and a favourable geographic mix, though this was partly offset by the sourcing mix.

Premium volumes, excluding two states where the company took specific steps to limit the impact of the conflict, rose 17%, while overall premium volumes across India grew 7%, led by Heineken Silver, which climbed 28%, and Kingfisher Ultra, which grew 11%.

The company noted that premium margins turned accretive for the first time, despite a 300 basis point hit to gross margins linked to the Middle East war.

Management Commentary On Outlook

CEO and Managing Director Vivek Gupta said inflationary pressures on the company's cost base are likely to continue in the coming quarters given ongoing macroeconomic uncertainty. He added that the company remains focused on disciplined pricing and cost management to protect margins while continuing to invest in long-term growth.

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