United Breweries Q2 profit soars 190% as Heineken Silver, Kingfisher Ultra volumes surge

United Breweries (UBL), the maker of Kingfisher beer, reported strong growth in the second quarter of FY27, with profit after tax (PAT) surging 190% as volume growth, premiumisation and productivity initiatives boosted performance.

Net sales rose 24% year on year, while sell-in volumes grew 16%, reflecting stronger consumer demand and healthy market conditions. Premium volumes jumped 38%, led by continued momentum in Heineken Silver and Kingfisher Ultra.

Heineken Silver volumes grew 67%, while Kingfisher Ultra recorded 44% growth, strengthening the company's premium portfolio. UBL said premium volumes accelerated by 31 percentage points from the previous quarter.

Operating performance also improved, with EBITDA rising 108% and earnings before interest and tax (EBIT) growing 161%. EBITDA margin expanded 480 basis points to 11.9%, while EBIT margin improved 441 basis points to 8.4%.

The company attributed the improvement to premiumisation, structural pricing measures, a favourable geographic mix, disciplined revenue management and cost-control initiatives. Gross margin improved 194 basis points despite continued inflationary pressures.

What the management said

Vivek Gupta, managing director and chief executive officer of UBL, said the company delivered an outstanding second quarter, with volume growth accelerating to 16%, net sales rising 24% and EBIT growing 161%.

These results are fully aligned with the ambitions and strategic priorities outlined during our Capital Markets Day earlier in the quarter, reinforcing our confidence in our ability to sustainably accelerate both growth and profitabilityVIVEK GUPTA

He added that premiumisation remained a key driver of value creation, with Heineken Silver now available in 11 markets and Kingfisher Ultra continuing to gain traction. The commissioning of two new can lines at the company's Nizam and Ellora breweries in Telangana and Maharashtra, respectively, is expected to improve its ability to meet growing demand.

UBL also plans to step up commercial investments in the coming quarter to support further growth.

First-half performance and outlook

For the first half of FY27, UBL reported 12% volume growth and a 14% increase in net sales. EBIT rose 35%, while PAT grew 31%. The underlying EBIT margin improved 129 basis points and PAT margin expanded 70 basis points.

The company said it gained share in profitable markets, led by Karnataka, while brand power increased further following the record levels reported in the previous quarter.

UBL expects the Indian beer market to offer attractive long-term growth opportunities, supported by favourable demographics, rising consumer preference for beer and premiumisation. Its priorities include expanding product availability, strengthening its portfolio through innovation, improving productivity and increasing cost efficiency.

The company also highlighted its contribution to the domestic economy. According to an independent socio-economic impact assessment by Steward Redqueen, UBL supported approximately 295,000 employment opportunities across its pan-India value chain in FY2024-25, contributed ₹43,000 crore in value added to the Indian economy and generated ₹30,600 crore in tax revenue. Around 93% of its procurement was sourced domestically.