Brands
United Breweries Q3 profit jumps 86 per cent on premium beer growth
Premiumisation drives margins higher as net profit more than doubles in the December quarter.
MUMBAI: United Breweries Limited (UBL) has clearly decided that when life gives you lemons, you should probably just make a Shandy or, better yet, launch a premium lager. The beer behemoth reported a sparkling set of financial results for the quarter ended 31 December 2025, proving that its strategy is far from going flat. In a performance that would make any publican proud, the company saw its Earnings Before Interest and Taxes (Ebit) skyrocket by a heady 86 per cent during the quarter.
The secret behind this intoxicating growth? A stiff dose of “premiumisation”. While the broader portfolio stayed steady, premium volumes bubbled up by 23 per cent year-to-date. This shift towards the finer things in life helped drive net sales up by 4 per cent in Q3, despite a slight dip in total revenue from operations, which stood at Rs 3,93,563 lakhs compared to Rs 4,42,465 lakhs in the same period last year.
The bottom line is looking particularly crisp. The company’s Gross Profit (GP) margin for the quarter hit 45.3 per cent, the highest level seen in three years. This 222-basis-point jump was fueled by a positive price-mix and a savvy move towards localising the portfolio.
Key standalone financial highlights for the quarter show a strong improvement across the board. Total income stood at Rs 3,94,648 lakhs, while profit before tax rose sharply to Rs 13,186 lakhs, compared to Rs 6,097 lakhs in the quarter ended December 2024.
Net profit came in at Rs 8,083 lakhs, more than doubling the previous year’s Q3 figure of Rs 3,826 lakhs. Earnings per share (EPS), both basic and diluted, increased to Rs 3.06 from Rs 1.45 year-on-year.
It wasn’t all cheers and celebratory rounds, however. UBL is still navigating some murky legal waters. The company continues to contest a Rs 75,183 lakh penalty from the Competition Commission of India (CCI), a matter that is currently sub judice before the Supreme Court. Additionally, the company is still untangling itself from the Bihar prohibition blues. While manufacturing remains closed in the state, UBL has applied under the “Amnesty Policy 2025” to potentially restart non-alcoholic beverage production at its Bihar unit, which holds assets worth Rs 5,894 lakhs.
There was also a one-off “exceptional” hit to the books. The company set aside Rs 1,873 lakhs in the quarter to account for the incremental impact of India’s new Labour Codes, specifically regarding gratuity and long-term compensated absences.
Looking ahead, UBL is keeping its glass half full. The firm’s “Productivity and Cost-Effectiveness” programme is expected to deliver gross savings of 3–6 per cent over time, with much of that cash being reinvested into brand power. Innovation remains on the menu too, with the recent January 2026 launch of Kingfisher Smooth in Rajasthan and Karnataka aimed at quenching the evolving thirst of the Indian consumer.
With brand power at a three-year high and a clear focus on the premium end of the bar, United Breweries seems well-positioned to keep the momentum flowing through 2026. It appears that for UBL, the only way is up, and preferably served chilled.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
