Heineken Silver volumes rose 67 per cent and Kingfisher Ultra grew 44 per cent in Q2 FY27, while Ebitda margin expanded to 11.9 per cent
United Breweries or UBL, the maker of Kingfisher beer, reported a 190 per cent year-on-year increase in profit after tax (Pat) in the second quarter of FY27, supported by higher sales volumes, premium beer demand and improved operational efficiency.
The company recorded strong growth across its premium portfolio, with Heineken Silver volumes increasing 67 per cent and Kingfisher Ultra registering 44 per cent growth. UBL said premium volumes accelerated by 31 percentage points compared with the previous quarter.
Operating profitability also improved during the quarter. Earnings before interest, tax, depreciation and amortisation (Ebitda) rose 108 per cent, while earnings before interest and tax (EBIT) increased 161 per cent. The Ebitda margin expanded by 480 basis points to 11.9 per cent, while the EBIT margin improved by 441 basis points to 8.4 per cent.
UBL attributed the improvement to premiumisation, structural pricing measures, a favourable geographic sales mix, disciplined revenue management and cost-control initiatives. Gross margin increased by 194 basis points despite persistent inflationary pressures.
Vivek Gupta, managing director and chief executive officer of UBL, said the company delivered an outstanding second quarter, with volume growth accelerating to 16 per cent, net sales rising 24 per cent and EBIT growing 161 per cent.
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.
To cater to rising demand, the company commissioned two new can lines at its Nizam and Ellora breweries in Telangana and Maharashtra, respectively. The additions are expected to strengthen its production capacity and improve product availability. UBL also plans to increase commercial investments in the coming quarter to sustain growth.
First-Half Performance And Growth Strategy
For the first half of FY27, UBL reported 12 per cent volume growth and a 14 per cent increase in net sales. EBIT rose 35 per cent, while PAT increased 31 per cent compared with the corresponding period last year.
The underlying EBIT margin improved by 129 basis points, while the Pat margin expanded by 70 basis points. The company said it gained market share in profitable markets, led by Karnataka, while brand strength improved further following the record levels reported in the previous quarter.
UBL expects India’s beer market to offer significant long-term growth opportunities, driven by favourable demographics, increasing consumer preference for beer and a shift towards premium products.
Its priorities include widening product availability, strengthening its portfolio through innovation, improving productivity and enhancing cost efficiency. The company also plans to support its growth strategy through higher commercial investments.
Contribution To The Indian Economy
UBL’s economic contribution extended beyond its business operations, according to an independent socio-economic impact assessment conducted by Steward Redqueen.
The assessment found that the company supported approximately 295,000 employment opportunities across its pan-India value chain in FY2024-25. It contributed Rs 43,000 crore in value added to the Indian economy and generated Rs 30,600 crore in tax revenue during the period.
Around 93 per cent of UBL’s procurement was sourced domestically, highlighting the role of local suppliers in its operations and broader value chain.
