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Informist, Monday, Aug. 3, 2026

By Devanshu Singla

MUMBAI – Beverages maker United Breweries Ltd. is expected to report an on-year decline in its June quarter net profit due to an increase in packaging costs and the depreciation of the rupee, according to brokerages tracking the company. The company's revenue from operations is likely to increase on year driven by strong demand for beer, premiumisation, and operating leverage.

The company is expected to report a consolidated net profit of INR 1.45 billion for the June quarter, according to the average of estimates from nine brokerages. This will be down 21% on year from INR 1.84 billion but up more than five times on quarter. The company's consolidated net sales for the quarter are expected to be INR 30.85 billion, up 8% on year from INR 28.62 billion and up 37% on quarter, according to the estimates.

The highest estimate for the company's net profit is INR 1.78 billion from Anand Rathi Share and Stock Brokers Ltd. and the lowest is INR 775 million from Nirmal Bang Equities Pvt. Ltd. The highest estimate for the company's net sales is INR 31.53 billion from Kotak Securities Ltd. and the lowest is around INR 29.32 billion from YES Securities (India) Ltd.

In the beer segment, an extended summer is likely to drive volume recovery and growth of 5% for the company. However, an increase in prices of glass is expected to weigh on margins and profitability.

United Breweries is expected to report a volume growth of 8% on year to 70 million cases for the quarter, driven by improvement in demand in select states where sales were earlier affected by higher price after excise duty hikes, Kotak Securities said. Accelerated premiumisation in Karnataka under the new excise policy and a strong summer will also support volume growth.

The Kingfisher maker's volumes in the premium segment are expected to increase 12-13% on year, outperforming the overall portfolio, and drive an improvement in mix, Nuvama said.

"North India volumes are likely to be hurt by unseasonal rains, affecting near-term demand, though this is typically deferred rather than structural. However, Karnataka has reported a good recovery in volumes post policy changes while Maharashtra continues to grow ahead of the curve for UBBL," Nuvama said.

United Breweries' earnings before interest, taxes, depreciation, and amortisation are estimated at INR 2.77 billion for the June quarter, up 88% from INR 1.47 billion in the trailing quarter, according to the average of eight estimates. The highest estimate for the company's EBITDA is INR 3.26 billion from Bank of America Global Research and the lowest is INR 1.75 billion from Nirmal Bang.

The company's gross margins are expected to decline 200 basis points on year and 485 bps sequentially, mainly due to the increase in the price of glass bottles due to gas shortage and of cans due to multiple supply side issues, the brokerages said. The company's EBITDA margin is also expected to decline 200 bps on year to 9% because of pressure on the gross margin.

The June quarter is expected to be largely stable for the alcoholic beverage industry with improved growth for beer and resilience in the prestige and above portfolio of spirit players, which will be partly offset by weakness in the mass-premium segment due to regulatory headwinds in Karnataka and Maharashtra, JM Financial said.

The Bangalore based company will detail its June quarter earnings Tuesday. Investors will closely watch for the outlook on performance in key states and growth in realisations.

At 1436 IST Monday, shares of United Breweries traded at INR 1,438.60 apiece on the National Stock Exchange, up over 1%. The stock is up nearly 2% since the company reported its March quart6r earnings on May 5.

 
Out of the nine brokerage reports on the company available with Informist, three have a "buy" recommendation, two have a "hold", and four have a "sell" recommendation. The average target price of the "buy" recommendations is INR 1,615, which is 12% higher than the current market price. The average target price of the "sell" recommendations is INR 1,418, which is over 2% lower than the current market price.

Following are the Apr-Jun earnings estimates for United Breweries from nine brokerage firms in descending order by estimate of net profit, in INR billion:

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Edited by Pankaj Aher

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