United Breweries Ltd (UBL) reported a resilient performance in Q3 FY26, supported by premium portfolio growth, improved gross margins, and better operating leverage. Despite category-level challenges such as weather impact and affordability pressures, the company delivered strong profitability improvement during the quarter.
The beer major also highlighted multiple strategic measures focused on strengthening the structural health of the business, including a productivity and cost-efficiency programme aimed at supporting margin expansion through FY27.
| Particulars | Q3 FY26 |
| Net Sales Growth | Up 4% |
| Premium Volume Growth (YTD) | Up 23% |
| Gross Profit Margin | 45.3% (highest in 3 years) |
| Gross Margin Expansion | +222 bps YoY |
| EBIT Growth | Up 86% |
UBL said net sales growth was driven by premiumisation and a positive price-mix, with premium volumes continuing to grow faster than the overall portfolio.
One of the biggest takeaways from United Breweries’ Q3 FY26 results was the sharp improvement in profitability.
The company reported a gross profit margin of 45.3%, which was its highest level in the last three years. This expansion was primarily driven by:
On a year-to-date basis, UBL’s gross profit margin stood at 43.4%, indicating steady improvement through the year.
UBL reported that EBIT grew 86% during Q3 FY26, supported by improved gross margins and early benefits from its cost-efficiency initiatives.
This suggests that UBL is now seeing meaningful operating leverage as its mix improves and cost optimisation begins to show results.
United Breweries confirmed that its productivity and cost-effectiveness programme, announced earlier in the year, will continue through FY27.
The company expects this programme to deliver gross savings of 3%–6% in the total cost base over time. Importantly, UBL also noted that a significant portion of these efficiencies may be reinvested strategically to support:
UBL highlighted that its portfolio brand power in Q3 FY26 was the highest in the last three years, driven by continued investments behind its key brands. This indicates that the company remains focused on building long-term consumer demand, rather than relying only on pricing actions.
Read more: West Bengal LakshmirBhandar Allowance Hiked: New Amount, Eligibility, and Key Rules Explained.
United Breweries’ Q3 FY26 results showed a solid combination of steady sales growth, strong premiumisation, and sharp margin expansion. With gross profit margins at a three-year high and EBIT rising 86%, the quarter reflected improving business fundamentals.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Feb 11, 2026, 2:44 PM IST
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
EN