Near-term headwinds likely to keep United Breweries under pressure

The company is planning to invest Rs 750 crore in a greenfield brewery in UP, to produce mainstream and premium brands

United Breweries (UBBL) recorded volume growth in the third quarter of financial year 2025 (Q3FY25) and gained market share but sales missed consensus. The operating profit margins at 7.1 per cent were below expectations. Management guided that investments made during the quarter, affected near-term profits but should lead to stronger sales this summer and beyond.

 

Other near term negatives for Q4FY25 include disruption in Karnataka due to excise duty and 15-day production stoppage in Telangana due to a dispute with the state government. FY26 could see operating profit jump year-on-year (Y-o-Y) due to the lower base.

 

UBBL delivered revenue growth