United Breweries share price today
United Breweries share price dropped 5 per cent on the BSE on Wednesday, hitting a 52-week low of ₹1,383 per share, after the company flagged risks to profitability over the next few quarters due to the ongoing Iran war, which is expected to keep input and logistics costs elevated in the near term.
At 11:20 AM, UBL shares were down 3.5 per cent on the BSE, as against a 0.2 per cent gain in the benchmark BSE Sensex index, with investors choosing to sell the liquor stock amid margin concerns and cautious management commentary on the outlook.
United Breweries Q4 results
United Breweries reported a mixed set of numbers for the March quarter (Q4FY26) where the company posted a 4.1 per cent year-on-year (Y-o-Y) rise in volumes to around 54 million cases, driven by strong demand in key markets and continued traction in its premium portfolio.
Volumes in the premium portfolio rose ~16 per cent Y-o-Y, led by strong performance from Kingfisher Ultra, Kingfisher Ultra Max and Heineken Silver.
However, UBL’s net sales in Q4FY26 declined about 3 per cent Y-o-Y to ₹2,247.8 crore, impacted by lower realisations due to an adverse sourcing mix.
Further, Ebitda fell nearly 25 per cent year-on-year to ₹139 crore, while margins contracted sharply by 183 basis points to 6.2 per cent, as higher operating costs offset gains from premiumisation and price hikes.
Its reported net profot stood almost flat ₹97.2 crore versus ₹96.6 crore in Q4FY25. Sequentially, it was higher than ₹81.4 crore.
The management attributed the pressure on margins to higher spending on advertising and promotions, increased bottle and packaging costs, and elevated freight expenses.
Additionally, operating leverage weakened during the quarter, further dragging earnings, it said.
The management said the geopolitical disruptions in the Middle East have pushed up input, packaging, and logistics costs, while also impacting export realisations.
Equirus Securities gives ‘Reduce’ rating to UBL stock
Analysts at Equirus Securities remain cautious on the stock, citing sustained cost pressures and limited visibility on margin recovery in the near term.
“The management has guided for a ₹400-500-crore cost headwind over the next 2-3 quarters, which will likely weigh on the near-term profitability,” the brokerage said.
It added that elevated freight costs, higher glass bottle prices, and rising aluminium can costs are expected to continue impacting margins going forward.
“With Q1 typically contributing more than 35 per cent of annual Ebitda, elevated cost pressures and weaker export realisations are likely to keep FY27 profitability under pressure,” Equirus noted, cutting its FY27 Ebitda estimates by 27 per cent.
It, however, said United Breweries’ multi-year productivity and cost optimisation initiatives—spanning network optimisation, portfolio rationalisation, sourcing efficiencies and fixed cost control— are yielding benefits and should partially offset near-term margin pressures.
Besides, the company has a strong positioning in the beer market and enjoys long-term tailwinds from premiumisation.
Yet, the near-term environment remains challenging.
“UBBL continues to strengthen its manufacturing footprint, with ongoing greenfield expansion in Uttar Pradesh and capacity augmentation in key markets to support premium portfolio growth. Management maintains a constructive medium-to-long-term outlook, although near-term recovery remains contingent on favourable weather conditions, pricing actions and improved trade liquidity,” it said.
Overall, Equirus Securities has cut net sales estimates by 3 per cent for FY27 and 2 per cent for FY28, Ebitda estimates by 27 per cent and 18 per cent, and net profit estimates by 45 per cent and 26 per cent for the respective years.
