United Breweries Ltd. reported a sharp jump in profitability for the September quarter, with net profit nearly tripling year-on-year as stronger sales, premiumisation and cost-control measures boosted performance.
The beer maker, part of the Heineken group, posted a net profit of Rs 135 crore for the second quarter of FY27, compared with Rs 46.5 crore in the corresponding period last year.
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Revenue from operations rose 23.6% year-on-year to Rs 2,537 crore from Rs 2,052 crore, according to the company's exchange filing.
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Earnings before interest, taxes, depreciation and amortisation (EBITDA) almost doubled to Rs 259 crore from Rs 130 crore a year earlier. EBITDA margin expanded to 10.2% from 6.3% in the year-ago quarter.
Other income increased to Rs 41.3 crore from Rs 14.9 crore. The company said other income for the quarter included Rs 36.89 crore in interest on income-tax refunds.
In its press release, United Breweries said volumes sold to distributors increased 16% during the quarter, while premium beer volumes surged 38%. Heineken Silver volumes grew 67%, while Kingfisher Ultra recorded 44% growth, reflecting stronger demand for premium offerings.
Net sales increased 24%, supported by volume growth, price increases, premiumisation and a favourable geographic and operating mix, the company said.
The brewer also reported a 194-basis-point improvement in gross margin, attributing the expansion to structural margin-recovery initiatives and disciplined revenue management.
EBITDA margin improved by 480 basis points to 11.9%, while earnings before interest and taxes (EBIT) rose 161% and EBIT margin expanded 441 basis points to 8.4%, according to the company's press release.
The operating margin figures cited in the press release differ from those calculated using the headline financial figures. The company has not reconciled the difference in the material provided.
Vivek Gupta, managing director and CEO of United Breweries, said the quarter reflected accelerating beer demand, a stronger brand portfolio and disciplined execution of the company's growth strategy.
He added that premiumisation remained a key driver of value creation, with the company planning to increase commercial investments in the coming quarter to sustain growth.
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For the first half of FY27, the company reported volume growth of 12% and net sales growth of 14%. EBIT increased 35%, while profit after tax rose 31%, according to the company.
United Breweries said it would continue to focus on expanding distribution, strengthening its portfolio, improving productivity and controlling costs as it seeks to capture opportunities in India's beer market.
The company also highlighted continued improvements in free operating cash flow, which it said would support investments in future growth.
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