United Breweries (UBBL) delivered revenue growth of 10% YoY (est. 12%), aided by policy changes in Andhra Pradesh. Premium portfolio continued to deliver strong performance, posting 33%YoY growth (27% in 2QFY25) We estimate a 13% revenue CAGR during FY25-27, led by high-single-digit volume growth. The company remains focused on volume-led growth, along with share gain in the premium portfolio. It is planning to invest INR7.5b in a greenfield brewery in UP, which will produce both mainstream and premium brands, including Heineken, in cans and bottles. The facility will add 1.0-2.0 MHL capacity, which is expected to be ready by 4QFY27. We maintain our Neutral rating on the stock with a TP of INR2,000 (based on 55x Dec’26E EPS). For all recommendations report, click here.
