United Breweries
United Breweries
Fast Moving Consumer GoodsKey Fundamentals
SmallcapBreweries & DistilleriesBeveragesTapetide Score
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Key Insights
Strengths
2- Company has been maintaining a healthy dividend payout of 62.8%
- Company's working capital requirements have reduced from 45.6 days to 24.6 days
Weaknesses
3- Stock is trading at 7.34 times its book value
- Company has a low return on equity of 9.47% over last 3 years.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 2d agoUnited Breweries Ltd, India's dominant beer company backed by Heineken, trades at a market cap of ₹32,934 Cr with a PE of 84x and a price-to-book of 7.35x. TTM sales growth has slowed to 1% and TTM profit has declined 26%, while the 3-year ROE averages around 9%, reflecting modest capital efficiency for a consumer franchise of this scale.
- Market leadership in Indian beer with the Kingfisher brand gives UBL significant pricing power and distribution reach across states, underpinning a 10-year sales CAGR of 7%
- Heineken's majority stake provides access to global best practices in brewing, supply chain, and brand management, supporting long-term competitiveness
- 5-year compounded profit growth of 24% demonstrates the operating leverage potential when volume growth cooperates
- Working capital days have been halved from 45.6 days to 24.6 days, freeing up cash and improving capital efficiency
- Healthy dividend payout ratio of 62.8% signals management confidence in cash flow sustainability and rewards shareholders during periods of slower growth
- India's per capita beer consumption remains among the lowest globally, offering a long structural runway as urbanisation, rising incomes, and premiumisation trends play out over the next decade
- Dividend yield of 0.8% is modest in absolute terms but notable for an FMCG company trading at 84x earnings, indicating some cash return discipline
- PE ratio of 84x is extremely elevated relative to the broader FMCG sector average of 45-55x, leaving little margin of safety if earnings disappoint further
- TTM profit has declined 26% year-on-year, signalling near-term margin or volume pressures that the premium valuation does not reflect
- 3-year ROE of just 9% is low for a consumer staples leader and indicates the business is not generating strong returns on shareholders' equity despite brand dominance
- Stock price CAGR of -30% over 1 year and -8% over 3 years shows sustained value destruction for shareholders, underperforming most FMCG peers
- Price-to-book of 7.35x is expensive given single-digit ROE; typically such valuations require ROE north of 20% to be justified
- TTM sales growth of just 1% suggests volume and realisation growth have stalled, raising questions about near-term demand in a category affected by state-level regulation and taxation
- Potential capitalisation of interest costs, as flagged in the financials, could mean reported profits overstate true economic earnings
- The Indian alcohol sector faces a complex and unpredictable regulatory environment with state-level prohibition risks, distribution monopolies, and periodic excise duty hikes that can compress margins without warning
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 2h ago- Stock hits 52-week low Sep 4
UBL shares fell 3.1% to a 52-week low of ₹1,251.60, down 22% YTD and 9% in the last month, marking the biggest single-day decline in eight months.
- Q1 profit drops 9.5% YoY Sep 4
Standalone net profit fell 9.5% YoY to ₹166 crore and EBITDA declined 9.1% YoY to ₹283 crore. EBITDA margin contracted from 10.9% to 9.2% despite beating Street estimate of 9%.
- Revenue misses Street estimates Sep 4
Q1 revenue of ₹3,067 crore came in below the Street estimate of ₹3,116 crore, even though it grew 7.1% YoY from ₹2,862 crore.
- Majority analysts rate sell Aug 25
Of 21 analysts covering UBL, 42.9% (9 analysts) rate it a sell versus 33% buy and 23% hold. Stock is 28.12% below its 52-week high of ₹1,890.80.
- Execution lags over three years Sep 4
JM Financial notes UBL's execution on mainstream share improvement and margin delivery has lagged expectations over the past three years, questioning sustainability of recent double-digit category growth.
- High beer taxation burden Sep 1
Excise duties account for ~65% of beer's retail price, with beer facing 1.3x higher tax burden per unit of alcohol than IMFL, constraining affordability and volume growth.
- ₹110 cr canning line commissioned Sep 1
UBL commissioned a ₹110 crore canning line at Ellora Brewery in Maharashtra with 40,000 cans/hour capacity, following a similar line at Nizam Brewery in Telangana in July 2026.
- Premium beer growing 20-25% annually Sep 1
Premium portfolio volume expanded at ~45% CAGR over two years and is targeted to reach 18-20% of sales by FY30, up from ~11% currently. Heineken Silver is growing over 40% nationally.
- Heineken Silver expands to 3 states Aug 25
UBL expanded Heineken Silver into Kerala, Odisha and Madhya Pradesh, building on strong momentum since its November 2025 New Delhi launch to capture premium market share.
- High Court dismisses ₹21.92 cr tax demand Sep 4
Bombay High Court Aurangabad Bench dismissed Revenue's appeal on a ₹21.92 crore service tax demand, eliminating the contingent liability for UBL.
- State reforms driving category growth Sep 1
Karnataka saw ~55% category growth post duty reform, Jharkhand ~55% growth in H1 FY26 on improved retail availability, and Maharashtra ~35% growth, with UBL outperforming in these markets.
- Choice Equities issues buy at ₹1,480 Sep 1
Choice Institutional Equities set a ₹1,480 target (15.3% upside), projecting 11.7% net revenue CAGR and ~28% net income CAGR over FY26-FY29E driven by premiumization and operating leverage.
- Capital Markets Day held Sep 3 Sep 2
UBL hosted its Capital Markets Day 2026 on September 3 in Goa for analysts and investors, unveiling its EverGreen 2030 strategy focused on double-digit net sales growth.
- Targets double-digit net sales growth Sep 4
UBL outlined a strategy targeting double-digit revenue growth through premiumization, better price mix, higher volumes, and 100% domestic sourcing of malt and glass bottles.
TL;DR: UBL is executing a clear premiumization strategy with premium volumes growing 20-25% annually and capacity investments like the ₹110 crore Ellora canning line, but near-term financials are under pressure with Q1 profit down 9.5% YoY, margins contracting from 10.9% to 9.2%, and the stock at a 52-week low down 22% YTD. Analyst sentiment is bearish with 43% sell ratings, and JM Financial flags three years of execution gaps on margin delivery. The outlook hinges on whether premiumization and state-level reforms can translate into sustained margin improvement through FY27-30.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 2,275 | 1,890 | 1,824 | 2,133 | 2,475 | 2,117 | 2,000 | 2,323 | 2,864 | 2,053 | 2,073 | 2,250 | 3,067 |
| Expenses | 2,052 | 1,706 | 1,678 | 1,991 | 2,190 | 1,890 | 1,859 | 2,136 | 2,553 | 1,923 | 1,847 | 2,111 | 2,784 |
| Operating Profit | 223 | 184 | 146 | 143 | 285 | 227 | 141 | 187 | 311 | 130 | 226 | 139 | 283 |
| OPM % | 10% | 10% | 8% | 7% | 12% | 11% | 7% | 8% | 11% | 6% | 11% | 6% | 9% |
| Other Income | 10 | 12 | 25 | 26 | 7 | 10 | -16 | 8 | 11 | 15 | -8 | 82 | 51 |
| Interest | 2 | 1 | 2 | 2 | 2 | 2 | 3 | 6 | 11 | 15 | 17 | 29 | 23 |
| Depreciation | 51 | 51 | 52 | 58 | 58 | 57 | 61 | 57 | 63 | 64 | 69 | 76 | 86 |
| PBT | 180 | 144 | 117 | 110 | 233 | 178 | 61 | 132 | 248 | 66 | 132 | 116 | 224 |
| Tax % | 24% | 26% | 27% | 26% | 26% | 26% | 37% | 26% | 26% | 30% | 39% | 12% | 26% |
| Net Profit | 136 | 107 | 86 | 82 | 174 | 132 | 39 | 98 | 184 | 46 | 81 | 102 | 166 |
| EPS in Rs | 5.15 | 4.06 | 3.23 | 3.07 | 6.56 | 5 | 1.45 | 3.69 | 6.95 | 1.76 | 3.06 | 3.85 | 6.29 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 4,688 | 4,833 | 4,729 | 5,619 | 6,475 | 6,509 | 4,243 | 5,838 | 7,500 | 8,123 | 8,915 | 9,240 | 9,442 |
| Expenses | 4,066 | 4,136 | 4,087 | 4,716 | 5,337 | 5,633 | 3,862 | 5,142 | 6,884 | 7,426 | 8,074 | 8,434 | 8,665 |
| Operating Profit | 622 | 697 | 642 | 903 | 1,138 | 876 | 381 | 697 | 616 | 696 | 841 | 806 | 777 |
| OPM % | 13% | 14% | 14% | 16% | 18% | 13% | 9% | 12% | 8% | 9% | 9% | 9% | 8% |
| Other Income | 37 | 82 | 52 | 13 | 32 | 9 | 43 | 30 | 16 | 74 | 10 | 100 | 140 |
| Interest | 73 | 81 | 59 | 48 | 31 | 31 | 23 | 15 | 5 | 7 | 13 | 72 | 84 |
| Depreciation | 208 | 244 | 287 | 260 | 260 | 285 | 232 | 217 | 211 | 212 | 233 | 272 | 295 |
| PBT | 379 | 455 | 348 | 608 | 879 | 569 | 169 | 494 | 417 | 551 | 605 | 562 | 539 |
| Tax % | 31% | 34% | 34% | 35% | 36% | 25% | 33% | 26% | 27% | 25% | 27% | 26% | — |
| Net Profit | 260 | 299 | 230 | 395 | 563 | 428 | 114 | 366 | 305 | 411 | 442 | 413 | 396 |
| EPS in Rs | 9.83 | 11.28 | 8.68 | 14.91 | 21.29 | 16.18 | 4.28 | 13.82 | 11.5 | 15.51 | 16.71 | 15.63 | 14.96 |
| Div. Payout % | 10% | 10% | 13% | 13% | 12% | 15% | 12% | 76% | 65% | 64% | 60% | 64% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 26 | 26 | 26 | 26 | 26 | 26 | 26 | 26 | 26 | 26 | 26 | 26 |
| Reserves | 1,824 | 2,121 | 2,308 | 2,664 | 3,157 | 3,494 | 3,556 | 3,909 | 3,938 | 4,152 | 4,337 | 4,496 |
| Borrowings | 836 | 806 | 594 | 312 | 211 | 252 | 262 | 10 | 16 | 102 | 620 | 1,317 |
| Other Liabilities | 1,198 | 1,413 | 1,550 | 1,721 | 1,989 | 1,778 | 2,008 | 2,004 | 2,300 | 2,773 | 3,239 | 3,854 |
| Total Liabilities | 3,885 | 4,366 | 4,479 | 4,723 | 5,384 | 5,551 | 5,852 | 5,949 | 6,280 | 7,053 | 8,223 | 9,693 |
| Fixed Assets | 1,836 | 1,822 | 1,750 | 1,730 | 1,777 | 1,926 | 1,949 | 1,913 | 1,851 | 1,776 | 1,749 | 2,050 |
| CWIP | 90 | 61 | 137 | 72 | 190 | 199 | 129 | 110 | 77 | 173 | 253 | 512 |
| Investments | 0 | 0 | 0 | 0 | 0 | 0 | 6 | 8 | 8 | 8 | 8 | 8 |
| Other Assets | 1,959 | 2,483 | 2,591 | 2,921 | 3,417 | 3,425 | 3,768 | 3,918 | 4,344 | 5,097 | 6,213 | 7,123 |
| Total Assets | 3,885 | 4,366 | 4,479 | 4,723 | 5,384 | 5,551 | 5,852 | 5,949 | 6,280 | 7,053 | 8,223 | 9,693 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 841 | 539 | 544 | 563 | 643 | 508 | 620 | 900 | -120 | 70 | 214 | 435 |
| Investing | -329 | -245 | -234 | -197 | -430 | -402 | -152 | -160 | -121 | -148 | -238 | -408 |
| Financing | -572 | -297 | -301 | -364 | -196 | -95 | -88 | -287 | -292 | -122 | 237 | 92 |
| Net Cash Flow | -60 | -3 | 9 | 3 | 17 | 10 | 380 | 453 | -533 | -201 | 213 | 118 |
| Free Cash Flow | 434 | 296 | 309 | 362 | 206 | 104 | 471 | 727 | -274 | -121 | -45 | 2 |
| CFO/OP | 158 | 100 | 107 | 90 | 91 | 80 | 184 | 148 | 3 | 30 | 48 | 81 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 75 | 84 | 100 | 97 | 85 | 76 | 120 | 78 | 68 | 104 | 117 | 116 |
| Inventory Days | 283 | 330 | 333 | 271 | 326 | 312 | 561 | 302 | 321 | 298 | 327 | 432 |
| Days Payable | 173 | 200 | 204 | 175 | 186 | 156 | 311 | 206 | 161 | 207 | 296 | 361 |
| Cash Conversion Cycle | 184 | 214 | 229 | 193 | 225 | 232 | 370 | 174 | 228 | 196 | 148 | 187 |
| Working Capital Days | 23 | 21 | 34 | 53 | 48 | 50 | 62 | 31 | 49 | 62 | 50 | 25 |
| ROCE % | 16% | 18% | 14% | 22% | 28% | 17% | 5% | 13% | 11% | 13% | 14% | 11% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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41 extracted metrics + investor summaries across FY15–FY26.
Documents
Frequently Asked Questions about United Breweries
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Company Information
United Breweries Limited (UBL) is engaged in the business of manufacture and sale of beer and non-alcoholic beverages. [1]
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