At 12:20 PM, UBL's's share price was up 0.72% and was trading at ₹2,035.00. The company has signed a leasing agreement with Ilios Breweries Pvt. Ltd. to expand operations in Andhra Pradesh. This decision comes at a time when the demand for beer, especially the popular Kingfisher brand, is rising across the region.
UBL already owns and operates a brewery in Ranasthalam, located in the Srikakulam district of Andhra Pradesh. With demand surging, the company found it necessary to add another facility to support peak-season sales and ensure smoother supply. The new plant will help improve distribution efficiency in the southern market.
Read more on: United Breweries Share Price in Focus: Profit Up Despite Revenue Dip, Declared ₹10 Dividend.
The leasing arrangement became effective on May 20, 2025, just a day after getting the required excise approval. This quick turnaround shows the company’s urgency and readiness to cater to growing consumer needs.
According to UBL, changing consumer tastes and growing support for low-alcohol beverages in India have created a solid opportunity for expansion. As more people opt for lighter and premium beer options, UBL wants to stay ahead by making sure supply doesn’t fall short.
UBL’s decision also follows a solid financial performance in the January–March quarter. The company reported a 20.5% year-on-year increase in standalone net profit, reaching ₹97.4 crore—beating market estimates. Revenue for the quarter stood at ₹2,321.3 crore, showing 8.9% growth. EBITDA rose sharply by 31.2% to ₹186.3 crore, and margins expanded to 8%, ahead of street expectations.
As per news reports, UBL is aiming for double-digit growth in both volume and revenue in FY26. A key part of this growth will come from premiumisation—that is, pushing higher-end beer products. In FY25 alone, premium beer volumes rose by 34%, showing that Indian consumers are increasingly willing to pay more for better-quality beverages.
United Breweries’ leasing of a new brewery in Andhra Pradesh shows its clear intent to meet demand and strengthen its supply chain. With strong financials and a focus on premium products, UBL is gearing up for solid growth in FY26.
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Published on: May 21, 2025, 1:03 PM IST
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