Liquor major United Breweries Ltd (UBL) reported a resilient performance for the quarter and year-to-date ended December 2025, driven by sustained premiumisation, disciplined cost management and strategic reinvestments, despite category headwinds from weather and affordability pressures.
For the third quarter of FY26, the company’s net profit rose sharply to ₹81.15 crore, more than doubling from ₹38.52 crore in the corresponding period last year. Revenue from operations for the quarter stood at ₹3,936 crore, compared with ₹4,426 crore a year ago.
UBL’s performance was underpinned by strong premium portfolio momentum and improved profitability. Net sales in Q3 grew 4%, led by premiumisation and a favourable price mix. Premium volumes continued to outpace the overall portfolio, recording year-to-date growth of 23%, which helped drive YTD net sales growth to 6%.
Margin performance showed a marked improvement during the quarter. Gross profit margin expanded to 45.3% in Q3, the highest level in the last three years, representing an increase of 222 basis points year-on-year. This was driven by positive price mix, localisation of the portfolio and operational excellence initiatives. On a year-to-date basis, gross margins improved to 43.4%, up 12 basis points compared to last year. EBIT for the quarter grew by a robust 86%, reflecting the benefits of operating leverage and efficiency measures.
During the quarter, the company launched a comprehensive productivity and cost-effectiveness programme aimed at strengthening the structural health of the business. The programme, which will continue through FY27, is expected to deliver gross savings of 3–6% across the total cost base over time. A substantial portion of these efficiencies will be strategically reinvested to support long-term growth, accelerate category-building initiatives and deepen premiumisation efforts. Early benefits from the programme have already contributed to margin expansion in Q3.
Brand investments continued to remain a key focus, with portfolio brand power reaching its highest level in three years during the quarter, supported by sustained marketing and activation initiatives.
As part of its ongoing commitment to innovation and in response to evolving consumer preferences, UBL launched Kingfisher Smooth in Rajasthan and Karnataka in January 2026. The new offering is expected to support the revival of category growth and further strengthen the company’s presence in the strong beer segment.