United Breweries (532478) Q3 25/26 earnings summary

Executive summary

• Delivered resilient performance with improved margins and continued premium growth, despite industry headwinds from weather and affordability challenges.

• Net sales grew 4% year-over-year in Q3 FY26, driven by price increases, favorable state mix, and operational efficiencies, while profit after tax surged 111% and EBIT increased 86%.

• Year-to-date FY26 net sales grew 6% with a 2.6% volume increase; premium volume up 23%, but profit after tax declined 9% year-over-year.

• Launched Kingfisher Smooth in January 2026 to support category growth and expand presence in the strong beer segment.

• Strategic productivity and cost efficiency programs launched to drive margin expansion and enable reinvestment for future growth.

Financial highlights

• Q3 FY26 gross margin improved by 222 bps to 45.3%, the highest in three years; EBITDA margin rose 384 bps to 11.4%.

• EBIT grew 86% sequentially from the previous quarter; Q3 EBIT margin increased to 8.1%.

• Q3 FY26 profit after tax reached Rs 81 Cr, up from Rs 38 Cr last year; Q3 net profit: Rs. 8,083 lakhs standalone, Rs. 8,115 lakhs consolidated.

• YTD FY26 gross margin at 43.4% (+12 bps); EBITDA margin at 10.1% (-27 bps); profit after tax at Rs 311 Cr.

• Realization growth of nearly 5% this quarter, split evenly between price and mix.

Outlook and guidance

• Productivity and cost-effectiveness programs to deliver 3%-6% gross savings over FY26–FY28, with significant reinvestment planned.

• Management targets 6%-7% industry volume growth in the long term, though short-term headwinds persist.

• Focus remains on premiumization, brand investments, innovation, and advocacy for equitable beer taxation to drive long-term growth.