Shares of United Breweries Limited (UBL) reached a new 52-week low of ₹1,382 during early trading on Wednesday, declining over 3.5% to ₹1,402 by 11:39 a.m. This downturn follows the company’s disappointing financial results for the January-March quarter reported on Tuesday.
The stock initially opened at ₹1,428.30 and has depreciated nearly 34.4% over the past year, underperforming the Nifty FMCG index, which is down approximately 9.9% in the same timeframe. Year-to-date, UBL shares have decreased about 12.8%, compared to the index’s decline of 4.6%. The company’s total market capitalization is around ₹37,070 crore, with approximately 5.46 lakh shares exchanged by mid-morning.
Brokerage firms expressed skepticism regarding UBL’s performance. JM Financial maintained an “ADD” rating with a target price of ₹1,610, describing the quarterly results as disappointing. Analyst Mehul Desai noted that while the company achieved a volume growth of 4.1%, which slightly surpassed expectations, a negative pricing and sourcing mix resulted in a 3.2% year-on-year decline in net revenue to ₹2,248 crore, falling short of both internal and market forecasts. EBITDA dropped by approximately 25% year-on-year to ₹147 crore, which was 43% below JM Financial’s projections, and EBITDA margins shrank by 180 basis points to 6.2%. SBI Securities highlighted a sharper sequential EBITDA decline of 38.3%.
The reported profit of ₹102 crore, representing a 4% year-on-year increase, was boosted by a ₹74 crore exceptional gain from the sale of freehold land. Excluding this item, profit before tax excluding exceptional gains fell by 68% year-on-year.
In terms of operational efficiency, the gross margins exceeded expectations, increasing by 332 basis points to 45.4%. However, this gain was completely negated by a 14% rise in other expenses, which were driven by increased advertising and promotional expenditures, alongside a dramatic 395% increase in finance costs.
Management has indicated an anticipated cost headwind of ₹400–500 crore over the next two to three quarters. This projection is largely attributed to supply disruptions linked to West Asia, ongoing input cost inflation, and pressure on the rupee. Nonetheless, premium volume growth of 16% and a 10% recovery in the beer category during Q4 were identified as positive trends.
Published on May 6, 2026.
