The report mentions that the beer category has faced a dip in volumes primarily due to extended, severe monsoons and floods in key states
Emphasising that celebrations, gatherings and large family events naturally drive higher consumption and bulk buying, a report has stated that a strong wedding season in the second half of the current financial year is likely to provide a further boost to liquor sales.
Nuvama Institutional Equities, in its report, highlighted that although a likely harsh winter is a challenge for United Breweries, Maharashtra is likely to report strong beer demand due to high taxes on spirits. Shedding light on the recent performance, the report added that the beer category has faced a dip in volumes primarily due to extended, severe monsoons and floods in key states. United Breweries or UBBL’s revenue and volumes both dipped 3 per cent year-on-year (YoY), slightly better than industry decline of mid-single digit.
The report added that Maharashtra remains challenging with volumes hit following a 35 per cent price hike. Delhi’s current liquor policy is valid until Mar 2026 and a new excise framework is anticipated thereafter. The state is being viewed as a potential Uttar Pradesh-like opportunity, and if route-to-market reforms are introduced, Delhi could become the next major catalyst, it said.
Glass bottle prices stayed stable in Q2 despite festive demand and meaningful softening is likely only in Q4 as supply eases. The report mentioned that packaging costs were stable in Q2 and are likely to remain broadly steady in H2FY26. As far as the outlook is concerned, the report pointed out that UBBL expects pricing growth to remain at 4 to 5 per cent, constrained by regulatory limits and affordability pressures in key markets.
