UBL's margin rises to 10.20% as costs trail revenue growth
Year-on-year profit growth was aided by a lower tax rate, while other income contributed 22.62% of pre-tax profit.
Filed 27 Oct 2026, 21:59 IST · after market close · United Breweries Ltd (UBL)
Key takeaways
- Consolidated operating margin expanded 3.88 percentage points year on year to 10.20%, as expenses grew 18.48% against revenue growth of 23.60%.
- Net profit rose 190.91% year on year, but other income accounted for 22.62% of pre-tax profit and the tax rate fell 3.37 percentage points.
- Sequentially, revenue fell 17.26% but operating margin improved 0.99 percentage points because expenses declined 18.17%.
Price around the results
Revenue growth outpaced costs year on year
United Breweries reported consolidated revenue growth of 23.60% year on year in Q2FY27, while expenses rose 18.48%. That operating leverage lifted operating profit by 99.65% and expanded margin by 3.88 percentage points. Sequentially, revenue fell 17.26%, but the 18.17% decline in expenses allowed operating margin to improve by 0.99 percentage points.
Lower tax rate helped profit, while interest rose
The year-on-year tax rate reduction of 3.37 percentage points added to net profit growth, even as interest expense increased 93.24%. On a sequential basis, interest expense rose 22.87% and the tax rate increased 0.27 percentage points. Other income contributed 22.62% of pre-tax profit, making it a material part of reported earnings quality.
Margin has improved for two straight quarters but trails peers
Operating margin rose from 6.19% in Q4FY26 to 9.21% in Q1FY27 and 10.20% in Q2FY27, marking two consecutive quarterly improvements. It remained 2.27 percentage points below the 12.47% median among 15 Fast Moving Consumer Goods peers that had reported, placing UBL fifth from the bottom.
Results were filed after market close
The results were filed after market close on 27 Oct 2026, so the immediate stock reaction is not covered here. Across eight previous results, the stock rose four times and fell four times, with a median absolute move of 0.93%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,537 cr | ₹3,067 cr | -17.26% | +23.60% |
| Other income | ₹41 cr | ₹51 cr | -18.52% | +178.06% |
| Expenses | ₹2,278 cr | ₹2,784 cr | -18.17% | +18.48% |
| Operating profit | ₹259 cr | ₹283 cr | -8.38% | +99.65% |
| Operating margin (%) | 10.20% | 9.21% | — | — |
| Interest | ₹28 cr | ₹23 cr | +22.87% | +93.24% |
| Depreciation | ₹89 cr | ₹86 cr | +4.05% | +39.26% |
| Profit before tax | ₹183 cr | ₹224 cr | -18.63% | +177.61% |
| Tax | ₹48 cr | ₹58 cr | -17.78% | +145.94% |
| Net profit | ₹135 cr | ₹166 cr | -18.93% | +190.91% |
| EPS (₹) | ₹5.12 | ₹6.29 | -18.60% | +190.91% |
Operating margin of 10.20% compares with a Fast Moving Consumer Goods sector median of 12.47% across 15 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 10.20% after two consecutive quarterly improvements.
- Whether interest expense reverses its 22.87% sequential increase.
- Whether other income remains a material component of pre-tax profit after its 22.62% share in Q2FY27.