United Breweries Ltd (UBL), India’s leading beer manufacturer, reported a steep decline in profit for the second quarter of FY26 as erratic monsoon conditions hurt beer demand across several regions. Despite challenges, the company recorded steady growth in its premium segment and continued investing in future expansion.
Revenue from operations fell by 21.2%, reaching ₹3,737.31 crore, down from ₹4,743.56 crore in Q2FY25. However, the company managed to lower its total expenses by nearly 19%, helping cushion the impact of lower sales.
| Metric | Q2FY26 | Q2FY25 | Change |
| Revenue from Operations | ₹3,737.31 crore | ₹4,743.56 crore | -21.2% |
| Net Profit | ₹46.34 crore | ₹132.33 crore | -65% |
| Total Expenses | ₹3,686.37 crore | ₹4,575.68 crore | -19.4% |
United Breweries reported a 3.4% decline in total volumes for the quarter. While states like Maharashtra, Andhra Pradesh, and Assam recorded positive growth, the overall performance was dragged down by poor weather conditions across major markets.
The company also noted that stock-building activity in Q2FY25, which followed a delayed summer season due to elections, affected the year-on-year comparison.
Interestingly, premium beer volumes grew 17% during the quarter, showing that consumers continue to shift toward higher-value products even in a challenging demand environment.
During the quarter, United Breweries invested ₹293 crore in capital expenditure. Most of this spending was directed toward a new greenfield project in Uttar Pradesh and other commercial initiatives aimed at driving long-term qualitative growth.
The company remains confident about the industry’s long-term potential, supported by rising disposable incomes, young demographics, and the growing trend of premiumisation in India’s alcoholic beverage market.
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The United Breweries Q2FY26 earnings results reflect a tough quarter marked by weather disruptions and lower demand. However, strong premium segment growth and ongoing capacity investments signal a positive outlook for future quarters. As market conditions stabilise, UBL’s focus on premiumisation and expansion is expected to support its recovery and long-term growth.
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Published on: Oct 30, 2025, 10:19 AM IST
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