India’s largest brewer, United Breweries Ltd (UBL), reported a 3% year-on-year decline in both sales volume and value for the quarter ended September 2025, after heavy and prolonged monsoon rains disrupted operations and hurt demand in key beer markets.
Chief executive officer Vivek Gupta said the “unusual monsoon” caused flooding at three UBL breweries and impacted several major markets, including Karnataka, Odisha, West Bengal, and Telangana, where category sales dropped nearly 40%. “We are disappointed with the financial results, but this is just one quarter. Our long-term plan remains on track,” Gupta told analysts in the company’s post-results call.
UBL’s total revenue from operations fell 21% year-on-year to ₹3,735.6 crore, while net sales stood at ₹2,051 crore, down 3%. The company’s standalone gross profit slipped 5% to ₹878 crore, and EBITDA dropped sharply by 39% to ₹145 crore, reflecting the combined effect of weather-related disruptions, inflationary pressure, and regional taxation issues.
Despite the overall decline, UBL’s premium segment continued to perform strongly, growing 17% year-on-year, led by Kingfisher Ultra and Kingfisher Ultra Max. The company also expanded its portfolio of value brands, introducing London Pilsner and Kalyani Black in Odisha and West Bengal to drive recovery in mass-market segments.
Gupta highlighted broader market challenges, including tax hikes and licensing delays. Karnataka, traditionally India’s beer capital, saw a 14–15% decline in category sales following repeated excise duty increases. Telangana, too, faced a double-digit dip due to delays in retail licensing.
The company is now focusing on improving productivity, managing input costs, and converting certain fixed costs into variable ones. Gupta added that the brewer remains confident about regaining growth momentum once weather and regulatory conditions stabilize.
