Mumbai: United Breweries reported strong profit growth in the third quarter of FY26. The company posted a consolidated net profit of Rs 81.15 crore, almost double from Rs 38.52 crore in the same quarter last year.
The growth was mainly supported by higher sales of premium beer and better operating margins.
Revenue Falls Due To Weak Seasonal Demand
Despite strong profit growth, revenue declined during the quarter. Revenue from operations fell 11.05 percent to Rs 3,936.99 crore, compared to Rs 4,426.55 crore last year.
The company said beer demand was affected by a colder-than-normal winter, which reduced consumption. Overall sales volume declined slightly during the quarter.
Premium Products And Pricing Support Margins
The company said premium beer products performed better than regular products. Premium segment growth and price increases in key states helped improve overall margins.
The company also focused on better pricing strategy and localisation of production, which reduced costs and improved efficiency.
Regional Performance Mixed Across India
Sales performance varied across regions:
North India: Volumes fell 16 percent
East and South: Volumes fell 2 percent each
West India: Volumes grew 20 percent
The company said weak demand in Telangana, Rajasthan and Karnataka impacted overall sales. However, strong demand in Andhra Pradesh and Maharashtra helped balance the decline.
Strong Gross Margins And Lower Costs
United Breweries reported a gross profit margin of 45.3 percent, which is the highest in the last three years.
Total expenses fell 12.7 percent to Rs 3,797.06 crore, helping improve overall profitability.
Total income during the quarter declined about 11 percent to Rs 3,948.08 crore.
Company Outlook
The company said it will continue focusing on cost control, better pricing and brand investments to improve margins.
United Breweries shares were trading around Rs 1,620.80 on the BSE, slightly higher from the previous closing price.
Strong premium product demand and cost control helped profit growth, even though revenue declined due to seasonal demand impact.
Disclaimer: This article is for informational purposes only and not investment advice. Market investments carry risks. Readers should verify data independently and consult qualified financial advisors before making financial decisions.
