United Breweries: Q2 volumes dip, premium segment grows amid legal challenges

United Breweries Limited announced its unaudited standalone and consolidated financial results for the quarter and year-to-date ended September 30, 2025. The company reported a 3.4% decline in total volume for Q2, primarily due to a stronger-than-usual monsoon and stock-building in Q2-FY25. Premium volume, however, grew by 17% for the quarter, contributing to a 33% half-year growth rate in this segment. Net sales for Q2 were down 3%, though year-to-date net sales growth reached 7%. Gross profit for the year-to-date increased by 5%, while EBIT declined by 18%, impacted by negative operating leverage in Q2 and continued brand investments.

The company also disclosed ongoing legal matters, including a penalty of INR 75,183 Lakhs levied by the Competition Commission of India, which is currently stayed by the Supreme Court of India. Separately, United Breweries faces a challenge to the cancellation of its land lease in Bihar, with the High Court of Patna directing to maintain status quo. The company’s property, plant, and equipment in Bihar are valued at INR 6,014 Lakhs.

United Breweries also announced an amendment to its "Code of Practices & Procedures for Fair Disclosures of Unpublished Price Sensitive Information," effective October 29, 2025, to align with recent SEBI regulations. The company will host a Q2FY2026 Earnings Call on October 30, 2025.