United Breweries Limited Earnings Summary — Q4 FY2026
United Breweries Reports Continued Revenue Growth Amidst Margin Softness and Significant Leverage Increase
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 4 consecutive quarters.
- Revenue of ₹3,067 Cr is 7.1% higher year-on-year.
- Revenue has compounded at 17.5% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹166 Cr is 9.5% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 37.5% annualised across the period.
- Operating margin stands at 9.2% in Q1 FY2027.
- Operating margin compressed by 164 bps year-on-year.
- Over the last two years operating margin has contracted by 232 bps.
- PBT margin is 7.3%.
- Expenses grew 9.0% against revenue growth of 7.1%.
- Operating profit of ₹283 Cr is 9.1% lower year-on-year.
- Operating leverage has been under pressure recently.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 63/100 (Healthy) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Accelerating | 3,067 | 2,250 | 2,073 | 2,053 | 2,864 | 2,323 | 2,000 | 2,117 | 2,475 | 2,133 |
| Expenses | Accelerating | 2,784 | 2,111 | 1,847 | 1,923 | 2,553 | 2,136 | 1,859 | 1,890 | 2,190 | 1,991 |
| Operating Profit | Volatile | 283 | 139 | 226 | 130 | 311 | 187 | 141 | 227 | 285 | 143 |
| Operating Margin | Accelerating | 9.2% | 6.2% | 10.9% | 6.3% | 10.8% | 8.0% | 7.1% | 10.7% | 11.5% | 6.7% |
| Other Income | Volatile | 51 | 82 | -8 | 15 | 11 | 8 | -16 | 10 | 7 | 26 |
| Interest | Strong Uptrend | 23 | 29 | 17 | 15 | 11 | 6 | 3 | 2 | 2 | 2 |
| Depreciation | Improving | 86 | 76 | 69 | 64 | 63 | 57 | 61 | 57 | 58 | 58 |
| Profit Before Tax | Volatile | 224 | 116 | 132 | 66 | 248 | 132 | 61 | 178 | 233 | 110 |
| Tax | Volatile | 58 | 14 | 51 | 19 | 64 | 34 | 23 | 46 | 60 | 28 |
| Net Profit | Accelerating | 166 | 102 | 81 | 47 | 184 | 98 | 38 | 132 | 174 | 81 |
| Net Margin | Volatile | 5.4% | 4.5% | 3.9% | 2.3% | 6.4% | 4.2% | 1.9% | 6.2% | 7.0% | 3.8% |
Key Takeaways
- Revenue for Q4 FY26 stood at ₹2,250 Cr, showing a sequential recovery from Dec 2025 but falling short of the ₹2,323 Cr recorded in the same period last year.
- Operating Profit Margin (OPM) contracted to 6%, down from 11% in the previous quarter, indicating persistent cost pressures or shifts in product mix.
- Net Profit improved to ₹102 Cr, aided significantly by an 'Other Income' spike of ₹82 Cr, which cushioned the impact of lower operating performance.
- Borrowings have spiked sharply to ₹1,317 Cr in FY26 compared to ₹620 Cr in FY25, marking a significant departure from the company's historically debt-free status.
- Interest expenses follow the debt trajectory, rising to ₹29 Cr in the latest quarter from just ₹6 Cr in the same quarter last year.
- The tax rate was unusually low at 12% for the quarter, further supporting the bottom line despite lower operating metrics.
Management Guidance
Management remains focused on 'Premiumization' as a core strategy to combat margin compression, particularly through Kingfisher Ultra and Heineken variants.
Sentiment Shift
Deteriorating
While net profit is up YoY, the underlying operating margin has weakened and the sharp increase in debt/interest costs presents a new financial risk profile.
Outlook
The outlook is cautious but stable; UBL maintains market leadership, but must navigate rising interest costs and volatile raw material impacts to restore margins to historical double-digit levels.
From the Annual Report (Key Quotes)
“The market dominant position and high barriers to entry in the alcohol space provide a robust foundation.”
“Management is currently focused on 'Premiumization' as a core pillar to combat inflation.”
“Operating Profit Margins (OPM) have seen a compression... largely driven by input cost inflation and a lag in state-mandated price increases.”
Official Quarterly Documents
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This summary is AI-generated from United Breweries Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.