Alcohol stock falls 4% after company’s net profit decreases by 75% QoQ

Synopsis:
United Breweries Ltd shares fell 4% after Q2 revenue dropped 28% QoQ to ₹2,053 crores and net profit fell 75% to ₹46.3 crores.

The shares of the Mid-cap company specializing in the manufacturing and sale of both alcoholic and non-alcoholic beverages, with a primary focus on beer, declined by upto 4 percent following their Q2 results, with a 75 percent decline in profit QoQ.

With a market capitalization of 47,701.33 Crores on Thursday, the shares of United Breweries Ltd declined by upto 4.1 percent, reaching a low of Rs. 1763.75 compared to its previous close of Rs. 1839.75.

What Happened

United Breweries Ltd, engaged in the manufacturing and sale of both alcoholic and non-alcoholic beverages, with a primary focus on beer, has announced its Q2 results as follows:

Its Revenue from operations declined by 3 percent YoY from Rs. 2,117 Crores in Q2FY25 to Rs. 2,053 Crores in Q2FY26, and it declined by 28 percent QoQ from Rs. 2,864 Crores in Q1FY26 to Rs. 2,053 Crores in Q2FY26.

Its Net Profit YoY declined by 65 percent from Rs. 132 Crores in Q2FY25 to Rs. 46.3 Crores in Q2FY26, and it declined by 75 percent QoQ from Rs. 184 Crores in Q1FY26 to Rs. 46.3 Crores in Q2FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 1.76, compared to Rs. 6.95 in the previous quarter.

The company has a low debt-to-equity ratio of 0.14, indicating it relies very little on debt for financing and is financially stable. At the same time, it maintains a strong dividend payout of 63.2%, showing it rewards shareholders generously while keeping a conservative capital structure. 

Company Overview & Others

United Breweries Ltd (UBL) is India’s largest beer producer, best known for its Kingfisher brand, and is now a subsidiary of The HEINEKEN Company. The company has a long history, dating back to 1915, and offers a diverse portfolio of beers like Kingfisher, Heineken, and Amstel, along with non-alcoholic beverages, packaged drinking water, and soda. 

In comparing the quarterly revenues, the beer segment consistently dominates, contributing over 99% of total segment revenue across all periods. The total revenue peaked in June 2025 at Rs. 5380.78 crores. It then declined to Rs. 3737.31 crores in September 2025. Compared to September 2024, Rs. 4743.56 crores.

The latest quarter’s revenue is lower, indicating some volatility or seasonal variation in demand. Non-alcoholic beverages contribute marginally, with a slight increase in September 2025 compared to June 2025. Overall, beer remains the core revenue driver, with fluctuations affecting total segment revenue.

Written by Sridhar J 

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Alcohol stock falls 4% after company’s net profit decreases by 75% QoQ appeared first on Trade Brains.