United Breweries Reports Beer Category Growth in Q4; Premium Segment Surges 16%

Bengaluru — United Breweries Limited announced its fourth quarter and full-year results for the period ending March 31, 2026, marking a significant turnaround as the beer category returned to expansion during the final quarter, driven primarily by strength in premium offerings.

The quarter demonstrated broad-based market recovery, with 80% of the company's operating regions posting growth. Premium brands including Kingfisher Ultra, Kingfisher Ultra Max, and Heineken® Silver delivered particularly strong results, reflecting consumer preference for higher-end products.

The beer category achieved double-digit expansion of 10% in Q4 FY26, supported by gains in both wholesale and retail channel volumes on a year-on-year basis. Wholesale volumes climbed 4.1%, while retail volumes increased in the high single-digit range. Premium segment volumes surged 16% during the quarter, substantially outpacing the overall portfolio growth.

Volume expansion was concentrated in Andhra Pradesh, Assam, and Maharashtra, though these gains were partially offset by contractions in Rajasthan, Telangana, and Odisha. The company noted that much of the volume growth originated from markets where production is handled through contract manufacturing partners, which affected overall net sales figures and gross profit margins.

Net sales in Q4 declined 3% compared to the previous year, despite volume increases. Gross profit margin strengthened to 45.4%, representing a 332 basis point improvement year-on-year. The company attributed margin pressure to elevated fixed costs, increased bottle investment, and the impact of sourcing arrangements.

For the full financial year, volumes expanded 3%, with premium volumes advancing 21%. The company maintained net sales growth of 4% and gross profit margin of 43.9%, an improvement of 92 basis points. United Breweries gained market share by double-digit basis points relative to competitors.

The company increased marketing investments by 27% in Q4 compared to the prior year quarter and committed Rs. 432 crore to capital expenditure during the year—Rs. 177 crore higher than the previous year—focused on commercial initiatives and supply chain enhancements.

Vivek Gupta, Chief Executive Officer and Managing Director, stated: "The return to category growth in Q4 represents validation of our brand investment strategy, which has strengthened brand equity and accelerated premium volume expansion alongside margin gains. We confront near-term headwinds from geopolitical developments, cost inflation, and intense competition, but we are implementing targeted pricing adjustments, operational discipline, and efficiency measures to address these pressures. We maintain conviction in India's beer market trajectory and believe our production capacity, team capabilities, and strategic initiatives position us competitively for sustained expansion."

The board approved maintaining the dividend at Rs. 10 per share for FY26, consistent with the prior year. Additionally, the board appointed Ms. Parul Malhotra as Chief Human Resources Officer with the designation of Director – People, effective July 1, 2026.