United Breweries (532478) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 sell-in volume rose 16%, premium volume 38%, net sales 24%, and PAT 190%; EBITDA margin expanded 480 bps to 11.9%.

• Pricing, premiumisation, geographic mix and productivity improved earnings conversion; structural interventions added an estimated ~INR 100 crore to quarterly EBIT.

• Weather-affected comparatives and ₹36 Cr of tax-refund interest boosted reported growth; management cautioned that the quarter is not a new earnings run rate.

Financial highlights

• Q2 net sales were ₹2,536 Cr (+24% YoY), gross profit ₹1,134 Cr (+29%), EBITDA ₹301 Cr (+108%), EBIT ₹212 Cr (+161%) and PAT ₹136 Cr (+190%).

• Q2 PBT was ₹184 Cr (+176%); other income of ₹41 Cr included ₹36 Cr of one-off interest on an income-tax refund.

• H1 net sales were ₹5,601 Cr (+14% YoY), EBITDA ₹635 Cr (+36%), EBIT ₹460 Cr (+35%) and PAT ₹302 Cr (+31%).

• Consolidated Q2 PAT was Rs. 16,628 lakhs versus Rs. 4,634 lakhs; EPS was Rs. 6.29 versus Rs. 1.76.

• Q2 net sales price-mix contributed 8 percentage points, driven by pricing and trade-spend rationalization, geographic mix, premiumisation and own-brewery leverage.

Outlook and guidance

• Category volume growth outlook remains 6%-7% if policy changes do not move dramatically; affordability and premiumisation support further momentum.

• Gross margin is expected within 43%-45% for the next couple of quarters; FY2027 gross cost impact is estimated at INR 350-400 crore, below the initial estimate.

• Profitability growth may moderate as commercial investment normalizes from a low base, raw-material costs flow through, and peak-season and brewery preparations increase.

• Priorities include growing the beer category, winning in mainstream and premium, expanding execution across stores, strengthening supply-chain capabilities and raising productivity.