India's United Breweries reports profit fall on higher levies, tepid demand

United Breweries

29/10/2025 14:54

Oct 29 (Reuters) - Kingfisher beer maker United Breweries UBBW.NS reported a decline in quarterly profit on Wednesday, hurt by higher excise duties and tepid demand.

The company, India's largest beer maker, posted a 64.5% fall in profit to 469.5 million rupees ($5.3 million) for the quarter ended September 30, from a year ago.

United Breweries, which is majority-owned by Dutch brewer Heineken HEIN.AS, posted a 21.2% drop in revenue, as volumes were hit due to unfavourable weather.

Revenue from operations fell to 37.36 billion rupees from 47.42 billion rupees a year ago.     Total expenses dropped 19.5% from last year.

For further earnings highlights, click here (Full Story)

KEY CONTEXT

Demand for beer was hit by a stronger-than-usual monsoon season and higher excise duties in key states such as Karnataka.

United Breweries' total volume declined 3.4% during the reported quarter; however, the premium segment's volumes grew 17%.

"We remain optimistic about the industry's long-term growth potential, driven by increasing disposable income, favorable demographics and premiumization," the beer maker said.

Spirits maker Radico Khaitan RADC.NS reported a surge in second-quarter profit earlier in the day. United Spirits UNSP.NS and Tilaknagar Industries TILK.NS are yet to report their earnings.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Price/Sales
Revenue growth (%)
Profit growth (%)
Mean rating*
No. of analysts
Stock to price target**
Div yield (%)
United Breweries Ltd
UBBW.NS
63.97
38.28
NULL
12.99
36.29
HOLD
11
0.91
0.55
United Spirits Ltd
UNSP.NS
53.49
37.20
NULL
-27.94
11.67
BUY
10
0.87
0.89
Radico Khaitan Ltd
RADC.NS
70.77
44.21
NULL
18.15
43.33
BUY
9
1.01
0.13
Tilaknagar Industries Ltd
TILK.NS
44.46
34.22
NULL
NULL
2.85
STRONG BUY
1
0.87
0.20

* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JULY-SEPTEMBER STOCK PERFORMANCE

-- All data from LSEG

($1 = 87.8950 Indian rupees)

United Breweries stock performance https://tmsnrt.rs/4hC8mdE

 (Reporting by Komal Salecha and Vijay Malkar in Bengaluru)

 ((Komal@thomsonreuters.com))