United Breweries (532478) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw a 3% year-over-year decline in volumes and net sales, but premium segment volumes grew 17%, outpacing the market and driving significant market share gains, led by Kingfisher Ultra, Ultra Max, Amstel Grande, and Heineken Silver.

• H1 FY26 net sales increased 7% year-over-year, with total volume up 4% and premium volume up 33%.

• Profitability declined sharply in Q2, with EBIT down 55% and profit after tax down 64% compared to the same quarter last year, mainly due to operating deleverage and increased brand investments.

• Brand investments increased over 20% year-over-year, reflecting a continued focus on long-term brand equity.

Financial highlights

• Q2 FY26 net sales: ₹2,051 Cr, down 3% year-over-year; H1 FY26 net sales: ₹4,914 Cr, up 7%.

• Q2 FY26 gross margin: 42.8% (down 104 bps YoY); H1 FY26 gross margin: 42.6% (down 76 bps YoY).

• Q2 FY26 EBITDA: ₹145 Cr (down 39%); H1 FY26 EBITDA: ₹467 Cr (down 12%).

• Q2 FY26 profit after tax: ₹47 Cr (down 64%); H1 FY26 profit after tax: ₹231 Cr (down 25%).

• CapEx in Q2: Rs. 293 Cr, mainly for new greenfield project in Uttar Pradesh and commercial capex.

Outlook and guidance

• Anticipates category growth to resume post-monsoon, with consumer sentiment expected to improve and a focus on growing the premium segment.

• Expects beer category growth of 5.5%–6% in the coming quarters, assuming normalized weather.

• Continued emphasis on revenue management, cost initiatives, and brand investments to support margin accretion.

• Optimism for long-term growth driven by rising disposable income, favorable demographics, and premiumization.