Revenue grew 7.07%, but margin pressure cut profit 9.65%
Consolidated margins rebounded sequentially as revenue grew faster than costs, but higher interest and depreciation weighed on year-on-year profit.
Filed 04 Aug 2026, 20:38 IST · after market close · United Breweries Ltd (UBL)
Key takeaways
- Consolidated revenue grew 7.07% year on year, but expenses rose 9.04%, narrowing operating margin by 1.64 percentage points and reducing net profit 9.65%.
- Sequential revenue growth of 36.30% outpaced expense growth of 31.90%, lifting operating margin by 3.02 percentage points, although other income still contributed 22.59% of pre-tax profit.
- United Breweries' 9.21% operating margin was 6.94 percentage points below the 16.15% median for 25 reported FMCG peers, placing it fifth from the bottom.
Price around the results
Growth returned, but profitability fell below last year
Consolidated revenue rose 7.07% year on year, while operating profit declined 9.11%. Expenses grew faster than revenue, taking operating margin down 1.64 percentage points and pulling net profit lower by 9.65%.
Higher interest and depreciation added to the pressure
Interest expense more than doubled year on year, rising 106.27%, while depreciation increased 36.31%; both diluted the benefit of revenue growth. Other income made up 22.59% of pre-tax profit, so reported profit included a meaningful non-operating contribution. The tax rate was broadly unchanged year on year, moving up 0.17 percentage points, so the profit decline was not driven by taxation.
Sequential margin recovery does not erase the volatility
Revenue grew 36.30% sequentially and expenses grew 31.90%, which expanded operating margin by 3.02 percentage points to 9.21%. Across the last five quarters, operating margin moved from 10.85% to 6.32%, 10.89%, 6.19% and 9.21%, showing a volatile pattern rather than a steady direction. The quarter's margin remained below the 16.15% median reported by 25 FMCG peers.
No immediate market reaction after the late filing
The results were filed after market close, so there is no post-results move to assess yet. Across eight previous result reactions, the stock rose four times and fell four times, with a median absolute move of 0.93%, indicating a mixed and generally modest historical response.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,067 cr | ₹2,250 cr | +36.30% | +7.07% |
| Other income | ₹51 cr | ₹82 cr | -38.30% | +358.08% |
| Expenses | ₹2,784 cr | ₹2,111 cr | +31.90% | +9.04% |
| Operating profit | ₹283 cr | ₹139 cr | +103.05% | -9.11% |
| Operating margin (%) | 9.21% | 6.19% | — | — |
| Interest | ₹23 cr | ₹29 cr | -20.66% | +106.27% |
| Depreciation | ₹86 cr | ₹76 cr | +12.85% | +36.31% |
| Profit before tax | ₹224 cr | ₹116 cr | +92.99% | -9.44% |
| Tax | ₹58 cr | ₹14 cr | +302.84% | -8.83% |
| Net profit | ₹166 cr | ₹102 cr | +63.23% | -9.65% |
| EPS (₹) | ₹6.29 | ₹3.85 | +63.38% | -9.50% |
Operating margin of 9.21% compares with a Fast Moving Consumer Goods sector median of 16.15% across 25 peers that have reported Q1FY27.
What to watch
- Whether operating margin moves up from 9.21% after the sequential recovery of 3.02 percentage points.
- Whether interest expense moderates from Rs 23.04 cr after its 106.27% year-on-year increase.
- Whether other income remains a material contributor after accounting for 22.59% of pre-tax profit.