Volume, margin concerns likely to weigh on beer maker United Breweries

In the September quarter, the company's gross margins shrunk 104 basis points year-on-year to 42.8 per cent on account of an adverse product mix and inter-state transfer

The stock of the country’s largest beer maker, United Breweries (UBBL), is trading at 25-month lows given multiple headwinds related to volumes, regulatory issues, and margin trajectory. After a muted second quarter (July-September) of 2025-26 (Q2FY26), brokerages also expect the company’s Q3FY26 performance to be underwhelming. At the current price, the stock is trading at 71 times its FY27 earnings estimates. 

Kotak Research expects near-term growth and margin outlook to remain challenging, with volumes expected to fall in Q3FY26 for the alcoholic beverage major. The other negatives for the company are regulatory pressures and adverse operating leverage, an unfavourable state