United Breweries (532478) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw a 3% decline in net sales and volumes, mainly due to adverse weather and affordability issues, but premium segment volumes grew 17%, outpacing the market and driving significant market share gains.

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

• Profitability declined sharply in Q2, with EBIT down 55% and profit after tax down 64% year-over-year, reflecting operating deleverage and higher brand investments.

• Brand investments increased over 20% year-over-year, supporting long-term brand equity despite short-term profitability pressures.

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%).

• Q2 FY26 EBIT down 55% YoY; H1 FY26 EBIT down 18% YoY.

Outlook and guidance

• Management remains optimistic about long-term industry growth, citing rising disposable income, favorable demographics, and premiumization.

• Focus on growing the premium segment, driving category growth, and accelerating productivity and operational excellence.

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