United Breweries Ltd Managing Director and CEO Vivek Gupta has stressed that maintaining beer affordability is crucial for sustaining industry growth, urging key states to consider regulatory support amid rising cost pressures. His remarks come as the company navigates a challenging operating environment influenced by taxation levels and broader economic factors.

Speaking on May 6, Gupta highlighted that a significant portion of the retail price of beer goes toward taxes, which directly impacts consumer affordability. He noted that nearly ₹70 out of every ₹100 spent by consumers is collected by the government, and called for a reduction in taxation to ensure the category remains accessible and continues to grow steadily.

Gupta specifically appealed to states such as Telangana, Andhra Pradesh, and Tamil Nadu, where the company has a strong market presence, to extend policy support to the industry. He emphasized that unlike many other sectors, brewers have limited flexibility to pass on increased costs to consumers without affecting demand.

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The company’s comments coincide with its latest financial results, which showed a mixed performance. United Breweries reported a 4.6% year-on-year rise in consolidated profit for the fourth quarter, reaching ₹102 crore compared to ₹97.6 crore in the same period last year. However, revenue from operations declined by over 3% to ₹2,250 crore, reflecting pressure on overall sales.

Operational performance also weakened, with earnings before interest, taxes, depreciation, and amortisation (EBITDA) falling 25.5% year-on-year to ₹139 crore. The EBITDA margin narrowed to 6.2% from 8% in the corresponding quarter, indicating rising cost pressures and margin compression during the period.

Looking ahead, the company expects additional cost impacts of ₹4,000–₹5,000 crore over the next two to three quarters. Despite these challenges, it announced a final dividend of ₹10 per share, subject to shareholder approval, with payment expected on or before September 10, 2026.

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