UBL bets on premiumisation as Q2 demand holds steady

United Breweries Ltd (UBL) is seeing continued positive momentum in the second quarter of fiscal 2026-27, with premium brands driving growth despite external headwinds, according to Managing Director and CEO Vivek Gupta. The company maintained its outlook for double-digit revenue expansion this fiscal, even as it absorbs an estimated ₹300-350 crore cost impact from geopolitical disruptions.

Growth in premium offerings remains a bright spot for the Kingfisher and Heineken owner. Premium brands are expected to expand by over 20 per cent during the fiscal year, with Heineken Silver emerging as a standout performer. The brand has grown more than 40 per cent nationally and is now entering three fresh markets—Madhya Pradesh, Odisha and Kerala—as part of UBL's expansion strategy.

Capital investments underline the company's confidence in market recovery. UBL announced ₹110 crore in new investment for its brewery facilities in Maharashtra, signalling intent to increase production capacity as demand recovers. The expansion comes as UBL navigates supply chain challenges and elevated input costs that have weighed on the industry this year.

The positive momentum in the September quarter's opening months suggests consumer demand remains resilient in key segments, particularly among drinkers trading up to premium and super-premium brands. Industry analysts point to premiumisation as a key growth driver across India's alcohol sector as disposable incomes rise in urban and semi-urban markets.