Revenue from operations (excluding excise duty) fell 3.14% YoY to Rs 2,250.07 crore in Q4 FY26.
Profit before exceptional items and tax declined to Rs 42.28 crore in Q4 FY26 from Rs 132.07 crore a year ago. The company reported exceptional items during the quarter, primarily comprising a Rs 74.04 crore gain from the sale of freehold land, partly offset by higher gratuity and long-term compensated absence liabilities following new labour code implementation.
Sell-in volumes grew 4.1% in Q4 FY26, while sell-out volumes increased in the high single digits. Premium segment volumes rose 16%, outperforming the overall portfolio. The company noted that volume growth was largely driven by markets serviced through contract breweries, which impacted net sales and gross margins. Net sales declined 3% during the quarter.
Gross profit margin improved 332 basis points YoY to 45.4%. However, the EBIT margin was impacted by higher fixed costs, increased new bottle infusion, and an adverse source mix. Capex stood at Rs 432 crore in FY26, up Rs 177 crore YoY, with investments directed towards commercial and supply chain initiatives.
United Breweries said 80% of its markets returned to growth in the fourth quarter of FY26, with premium brands such as Kingfisher Ultra, Kingfisher Ultra Max, and Heineken Silver posting strong performance. The company said the beer category returned to double-digit growth in the quarter, rising 10%, with growth in both sell-in and sell-out volumes on a year-on-year basis.
United Breweries remains optimistic about the recovery in beer demand, aided by recent regulatory changes. However, it highlighted that the ongoing Middle East conflict has disproportionately impacted the Indian beer industry, leading to supply chain disruptions, inflationary pressures, and reduced high-margin export volumes.
'This is resulting in a significant increase in raw material, packaging, transportation, and other operating costs. Along with sustained competitive intensity, this is expected to weigh on performance in the coming quarters,' the company said.
The company expects the cost impact to be in the range of Rs 400 crore to Rs 500 crore over the next two to three quarters. It has initiated mitigation measures, including price hikes in coordination with state governments and cost optimization efforts, while continuing structural initiatives to improve productivity and efficiency.
Despite near-term headwinds, the company remains confident about the long-term growth prospects of the beer category in India, supported by its manufacturing network and strategic investments.
On a full-year basis, the company's net profit declined 6.5% to Rs 413.17 crore on a 3.6% rise in revenue from operations (excluding excise duty) to Rs 9,239.94 crore in FY26 over FY25.
For FY26, volumes grew 3%, while premium volumes rose 21%. The company said it strengthened its market position during the year, with share gains in double-digit basis points and higher brand power. Net sales for FY26 rose 4%, while gross profit margin stood at 43.9%, up 92 basis points from the previous year.
Meanwhile, the board has recommended a dividend of Rs 10 per equity share of face value Rs 1 each for FY26. The payout is subject to shareholder approval at the upcoming AGM and, if approved, will be paid on or before 10 September 2026.
United Breweries (UBL) is engaged in the business of manufacturing and selling beer and non-alcoholic beverages.
Shares of United Breweries fell 3.84% to Rs 1,398.15 on the BSE.
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