Why did share of this alcoholic beverage company rise 2% in trade today?

United Breweries share price was trading 1.6 per cent higher at ₹1,824.3 per share against the previous close of ₹1,795.8 on the NSE

United Breweries share price today: Shares of alcoholic beverage company United Breweries rose over 2 per cent to hit an intraday high of ₹1,839.5 on the NSE after the company announced it has commenced production of its flagship brand Kingfisher at the Ilios Brewery in East Godavari, Andhra Pradesh. 

 

At 01:20 PM, the company's share price was trading 1.6 per cent higher at ₹1,824.3 per share against the previous close of ₹1,795.8 on the NSE. In comparison, NSE Nifty50 was up 0.26 per cent at 24,688.85 levels. The market capitalisation of the company stood at ₹48,386 crore. The 52-week high of the stock was at ₹2,299.7 per share, and the 52-week low was at ₹1,792.

 

 

In May this year, the company announced a leasing arrangement with Ilios Breweries Private Limited to enhance its manufacturing capacities in Andhra Pradesh. 

 

"Equipped with best-in-class infrastructure, Ilios Brewery has a monthly capacity of up to 4.5 lakh cases of beer, complementing the 12 lakh case capacity of the Srikakulam brewery to meet the region’s growing demand for high-quality beer," the company said in an exchange filing.

 

Additionally, Ilios supports over 500 livelihoods through direct and indirect employment. The operations also generate opportunities across ancillary sectors, including packaging, logistics, and distribution.

United Breweries Q1 results 

In the April-June quarter of fiscal 2025-26 (Q1FY26), United Breweries reported a consolidated net profit of ₹184.03 crore, up 5.9 per cent from ₹173.8 crore in the year-ago period. However, the company's revenue from operations fell 7.4 per cent year-on-year (Y-o-Y) to ₹5,380.78 crore from ₹5,811.28 crore.

 

The company's Q1 volumes surged 11 per cent, surpassing the impact of elections during peak season in 2024, along with strong estimated market share gains in the quarter. Its total expenses declined 7.9 per cent Y-o-Y to ₹5,143.97 crore. Overall income also dipped by 7.33 per cent Y-o-Y to ₹5,391.85 crore.

Anand Rathi on United Breweries

According to analysts at Anand Rathi Research, United Breweries posted a mixed Q1, with strong volume growth of 11 per cent, on the back of market-share gains, the lower base (due to the elections) and premiumisation. However, the operating performance was weak with Ebitda margin contracting by 70 basis points (bps) Y-o-Y to 10.9 per cent, due to policy changes in Karnataka and higher brand investments. 

 

"The focus on category growth, capacity addition, innovations (London Pilsner, Amstel, Queen-Fisher), premiumisation (Heineken) and cost-efficiency steps should aid in gradual revenue and margin recovery. We are optimistic about steady volume growth aided by brand investments, market-share gains and a gradual margin recovery driving healthy earnings performance," the brokerage said in a note earlier. 

 

The brokerage has a 'Buy' rating on the stock with a 12-month target price of ₹2,420.