Synopsis: United Breweries Limited expects sales and premium beer demand to grow, while the CEO highlights the need for GST reforms, lower taxes, and better packaging supplies.
The shares of a mid-cap firm involved in producing beer and non-alcoholic beverages drew attention after the CEO indicated the need for GST reforms, lower taxes, and better packaging supplies.
With the market capitalization of Rs.47,011.24 crore, the shares of United Breweries Limited were trading at Rs.1,778, up by 0.08 percent from its previous day’s closing price of Rs.1,776.55 per equity share.
Future plans
Heavy rainfall has affected the sales in important regions during the last quarter. However, Vivek Gupta, CEO of United Breweries Limited, has said that the company expects its volume to grow 6 to 7 percent for the current financial year.
He believes that the recent GST reforms by the government, which lower taxes on most consumer goods and some services from September 22, 2025, could increase alcohol consumption.
Vivek Gupta mentioned taxes on the beer industry, which has 6 percent alcohol less than whisky, should be reduced by the government, which is closely connected to farmers. He stated that the beer industry has made significant investments in breweries, created jobs, and contributes a large amount of taxes. With some operational relief, the industry could grow even more due to its potential.
He also highlighted that beer, a natural product made from barley, benefits crop productivity and that the government needs to take necessary steps. Gupta criticized state governments raising taxes on alcoholic beverages to recover fiscal gaps from cash transfer schemes, indicating that there is no benefit. He also explained that higher taxes make beer expensive, which lowers sales and makes local production less appealing.
Vivek Gupta said due to heavy rains, the company is expecting a strong 6 to 7 percent growth in sales volume after the condition. He added that the premium segment is expected to grow by 25 percent. Regarding the company’s capital expenditure, Vivek Gupta said the company is expanding at a different speed and scale of investment across states.
United Breweries, a part of the HEINEKEN company, is engaged in producing and selling beer as well as non-alcoholic drinks. The company’s primary brand, Kingfisher, is used to sell and distribute beer across India.
The company’s beer segment has established itself as the clear leader in the Indian beer market. UBL operates a wide network of both owned and contract manufacturing facilities nationwide. It adheres to strict quality management practices based on ISO 9000 standards, ensuring quality control at every stage, from sourcing raw materials to delivering the final product.
The company’s revenue increased from Rs.2,475 crore in Q1FY25 to Rs.2,864 crore in Q1FY26. Net profit rose from Rs.174 crore in Q1FY25 to Rs.184 crore in Q1FY26. ROE stands at 10 percent and ROCE at 13.9 percent. It has a P/E ratio of 102.09 and an industry average of 33.03.
Written by Jhanavi Sivakumar
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