United Breweries LimitedQ1 FY27 Results & Financial Update
United Breweries Limited: Q1 FY27 consolidated results and company financials – revenue ₹5,919.44 Cr, PAT ₹166.28 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceCurrent reported figures.Change figures appear when a comparable reported period is available.
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Quarterly Results AnalysisExplore United Breweries Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Sell-in volumes expanded by 9% year-on-year, while sell-out volumes achieved a stronger 13% growth rate during Q1 FY27 as the company intentionally reduced inventory levels by 20% to optimize cash flow generation.
The domestic beer category witnessed robust double-digit expansion, bolstered by progressive policy reforms in states like Karnataka, Maharashtra, Jharkhand, and Andhra Pradesh, with Karnataka leading through alcohol-by-volume (ABV) based tax restructuring.
Gross margins experienced a 300 basis point pressure due to Middle East conflict headwinds, but proactive recovery initiatives limited the net contraction to 155 basis points year-on-year, resulting in a reported gross margin of 41.0%.
EBITDA margin recovered significantly to 10.9%, improving from 6.5% in the preceding quarter, supported by disciplined pricing strategies, rigorous cost management, and operational productivity enhancements.
Free operating cash flow (FOCF) improved by 38% to ₹548 crore, underpinned by disciplined working capital management and lower inventory holdings.
The company recorded its highest brand power in the last 24 months, propelled by sustained investments behind core and premium labels including Kingfisher, Kingfisher Ultra, and Heineken.
01 · Business model
What does United Breweries do?
Headquartered in Bengaluru and backed by the HEINEKEN Company, United Breweries Limited (UBL) operates as India's largest beer manufacturer, producing and marketing an extensive portfolio of alcoholic beverages, packaged drinking water, and soda.
The company's diverse brand roster features prominent labels such as Kingfisher Strong, Kingfisher Premium, Kingfisher Smooth, Kingfisher Ultra, Kingfisher Ultra Max, Kingfisher Ultra Witbier, Heineken Original, Heineken Silver, Amstel Grande, and Heineken 0.0, alongside non-beer offerings like Kingfisher Premium Packaged Drinking Water and Kingfisher Strong Power Soda.
UBL distributes its products nationwide through an extensive network of manufacturing facilities, breweries, and strategic partnerships, catering to evolving consumer preferences across various domestic states and select international markets.
02 · Historical context
What shaped the business before this quarter
Effective May 1, 2022, the company closed its manufacturing operations in Bihar following state prohibition laws enacted in 2016 and 2017. The Bihar Industrial Area Development Authority (BIADA) subsequently cancelled the land lease in December 2022, leading to ongoing legal challenges and a pending writ petition before the Patna High Court.
In September 2021, the company received an order from the Competition Commission of India (CCI) levying a penalty of ₹75,183 lakhs regarding alleged contraventions under Section 3 of the Competition Act, 2002. The matter is currently sub judice before the Supreme Court of India, which granted a stay on recovery subject to partial deposits.
Over the past two years, UBL pursued targeted efforts to localize production and streamline network efficiency, culminating in premium margins turning accretive for the first time in Q1 FY27.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Revenue from operations | ₹5,919.44 Cr |
| Total income | ₹5,970.15 Cr |
| Profit before tax | ₹224.49 Cr |
| Profit after tax | ₹166.28 Cr |
| EPS | ₹6.29 |
Financial interpretation
What the reported numbers mean
Profit after tax represented 2.8% of reported quarterly operating revenue. This is a calculated net-profit-to-sales ratio, not a company-reported operating margin. It measures the outcome after expenses and tax; it does not, by itself, establish how margins changed versus another period.
Profit before tax was equivalent to 3.8% of quarterly operating revenue. The distinction between pre-tax and post-tax profit matters when interpreting earnings; neither ratio identifies an underlying cost driver without a properly matched comparative period.
Total income exceeded operating revenue by ₹50.71 crore. This is the disclosed difference between the two lines, not incremental sales. The distinction matters when assessing how much of the quarter’s reported income came from the operating top line.
Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Net sales grew 7% year-on-year, driven by a 9% increase in sell-in volumes and a 13% increase in sell-out volumes, alongside strategic price increases and favorable geographic mix.
Total premium volumes across India grew 7%, led by a 28% surge in Heineken Silver and an 11% increase in Kingfisher Ultra, excluding two states impacted by Middle East war disruptions where deliberate mitigation actions were taken.
What drove margins
Gross margin faced a 300 basis point headwind from Middle East conflict impacts on input costs, but the company's recovery program contained the net decline to 155 basis points year-on-year, delivering a gross margin of 41.0%.
EBITDA margin reached 10.9% (-35 bps vs LY), recovering sharply from 6.5% in the previous quarter through rigorous cost management, productivity enhancements, and localized manufacturing efficiencies.
05 · Segments, products & geography
Which parts of the business are doing the work
Geography and market mix
Karnataka spearheaded category growth through ABV-based tax reforms, while Maharashtra, Jharkhand, and Andhra Pradesh recorded strong volume growth driven by favorable state excise policy revisions.
06 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
As part of network capability enhancement, UBL successfully commissioned a new canning line in Telangana during the quarter.
The company completed the closure of the Ludhiana brewery as part of its North Grid optimization program, while capital investments in Maharashtra and Uttar Pradesh remained on track.
Projects, capex and execution
Capital expenditure and capacity expansion projects in Maharashtra and Uttar Pradesh progressed in line with schedules to future-proof network capabilities.
07 · Strategy & new businesses
How the company is trying to change its growth mix
UBL announced a strategic partnership with ABB in Punjab to support manufacturing efficiency and operational automation.
08 · Reported developments
What changed operationally
Multi-year localization and execution efforts resulted in premium segment margins turning accretive for the first time.
09 · Pressure points & risks
What is not going smoothly
Middle East conflict dynamics exerted significant headwinds on input costs, creating a 300 basis point negative impact on gross margins.
10 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Free operating cash flow (FOCF) improved by 38% year-on-year to ₹548 crore, supported by disciplined working capital management and a deliberate 20% reduction in inventory levels.
11 · Management guidance & targets
What management is targeting from here
Management expects inflationary pressures on the cost base to persist over coming quarters amid an uncertain macroeconomic environment, maintaining focus on disciplined pricing and cost productivity.
12 · Beyond the numbers
What changed beyond the numbers
Reported update
Bihar Asset Valuation
As of June 30, 2026, the carrying value of property, plant, and equipment at Bihar stands at ₹5,6,94 lakhs, with recoverable value evaluated under fair value less cost of disposal considering leasehold transfer rights under the BIADA Amnesty Policy 2025.
Reported update
Dividend Withholding Orders
Pursuant to orders from the Debt Recovery Tribunal and tax/provident fund authorities regarding an erstwhile director, the company has withheld ₹9,032 lakhs in dividend payments and ₹45 lakhs in director commissions and sitting fees.
13 · Previous-quarter changes
What changed since the previous quarter
EBITDA margin improved sequentially to 10.9% in Q1 FY27 from 6.5% recorded in the preceding quarter (Q4 FY26).
14 · Key Q&A
The quarter, answered directly
What does United Breweries do?
Headquartered in Bengaluru and backed by the HEINEKEN Company, United Breweries Limited (UBL) operates as India's largest beer manufacturer, producing and marketing an extensive portfolio of alcoholic beverages, packaged drinking water, and soda.
What is the clearest takeaway from Q1 FY27?
Sell-in volumes expanded by 9% year-on-year, while sell-out volumes achieved a stronger 13% growth rate during Q1 FY27 as the company intentionally reduced inventory levels by 20% to optimize cash flow generation.
What drove revenue or demand?
Net sales grew 7% year-on-year, driven by a 9% increase in sell-in volumes and a 13% increase in sell-out volumes, alongside strategic price increases and favorable geographic mix.
What mattered most for margins or profitability?
Gross margin faced a 300 basis point headwind from Middle East conflict impacts on input costs, but the company's recovery program contained the net decline to 155 basis points year-on-year, delivering a gross margin of 41.0%.
What changed operationally beyond the headline numbers?
As part of network capability enhancement, UBL successfully commissioned a new canning line in Telangana during the quarter.
What is management guiding or targeting from here?
Management expects inflationary pressures on the cost base to persist over coming quarters amid an uncertain macroeconomic environment, maintaining focus on disciplined pricing and cost productivity.
15 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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16 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Supreme Court Litigation: Resolution of the special leave petition filed by the State of Bihar regarding prohibition and the pending Supreme Court appeal concerning the CCI competition penalty.
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