Dear Members,
Your Companys Directors are pleased to present this Integrated
Annual Report on the business performance and operations of
the Company along with the audited financial statements of
United Breweries Limited (UBL or we or your Company or
the Company) for the financial year ended March 31, 2026
(the year under review, the year, FY2025-26 or FY26).
MANAGEMENT SUMMARY
The Indian beer industry delivered a resilient performance in
FY 2025-26, supported by increased consumer demand and
a favourable long-term growth outlook. Evolving consumer
preferences, increasing premiumisation and expanding
consumption occasions continued to shape the category. Despite
a dynamic regulatory environment, your Company delivered
strong progress through focused innovation, premiumisation
and deeper consumer engagement, reinforcing its position as
a category leader.
We are pleased to present the following highlights:
-The Kingfisher portfolio continued to outperform the
category across both mainstream and premium segments,
with brand equity at an all-time high. In the mainstream
segment, Kingfisher delivered a 1.7% market share gain,
driven by a renewed focus on its core "King of Good Times"
proposition, amplified through key sports and music
associations. This was supported by strong commercial
execution and portfolio innovation, including the launch of
Kingfisher Smooth to cater to evolving preferences for more
sessionable beers while retaining core consumers. In the
premium segment, the Kingfisher Ultra portfolio recorded
robust 27% growth, led by Ultra Max at 59%, resulting in a
2.4% market share gain. Continued investments in capacity,
trade execution, and brand positioning are sustaining
strong momentum and reinforcing its leadership in the
premium segment.
-Fleineken? Silver sustained its strong growth momentum
across key markets, including Goa, Karnataka, and
Maharashtra, while further expanding its presence in
West Bengal. The brand continued to strengthen its
premium positioning through global associations such
as the UEFA Champions League and Formula 1. This was
supported by partnerships with leading digital platforms
and influencers to deliver exclusive, first-of-its-kind
Fleineken experiences in India. These initiatives were
complemented by high-impact visibility activations and
live screenings, culminating in fan parks in Mumbai and
Bengaluru that engaged thousands of consumers with
immersive, never-seen-before experiences.
-AmstelGrandehasbuiltagoodearlymomentumand received
great consumer acceptance across Maharashtra, Kolkata,
Bengaluru, Uttar Pradesh last year. The brand saw in-store
activations in key outlets with consumer promotions and an
experiential "Durga Puja" activation in Kolkata. This year, the
brand is set to truly ignite excitement among premium beer
consumers. At the heart of this is the Manchester United
activation-bringing fans together with exclusive giveaways
of licensed merchandise and the ultimate fan experience of
sending consumers to Old Trafford.
Other highlights of UBL for the period FY2025-26
-Volume growth of 3% with broad-based growth across our
footprint. The Premium segment grew close to 21%.
-Net sales grew 4% with volume growth, supported by pricing
and state-mix effects.
-Gross Margin grew close to +92bps, driven by revenue
management & cost initiatives.
-EBIT margin declined -94bps due to expenses ahead of
revenue, mostly driven by commercial investments, higher
new bottle infusion and the source mix impact.
-Capex investment of Rs. 51,106 Lakhs in breweries and
commercial assets to meet volume growth.
-The Board proposes a Dividend of Rs.10 per Equity Share,
representing circa 64% payout of profit after tax.
Amid a rapidly evolving regulatory landscape and rising
consumer aspirations, your Company is energised to accelerate
its journey of innovation, premium portfolio expansion, and
strategic efficiency. Backed by FIEINEKENs global expertise, the
Company is well-positioned to shape the future of the Indian
beer industry - driven by a sharp focus on sustainability, digital
transformation, and talent development, and inspired by a young
adult, dynamic, and increasingly aspirational consumer base.
FINANCIAL SUMMARY
Financial performance for the year ended March 31, 2026, is summarized below:
STANDALONE FINANCIAL RESULTS |
Year Ended March 31 |
|
| 2026 | 2025 | |
Gross Turnover |
17,45,621 | 19,40,080 |
Net Turnover |
9,23,266 | 8,90,735 |
EBITDA |
84,991 | 87,465 |
Profit before Taxation |
56,189 | 60,335 |
Profit after Tax available for appropriation |
41,316 | 44,117 |
Appropriations: |
||
Dividend on Equity Shares |
(26,441) | (26,441) |
Key Ratios |
2026 | 2025 |
Profit Before Tax as % of Net Revenue |
6.1 | 6.8 |
Net Profit Ratio (%) |
2.4 | 2.3 |
Net Debt/EBITDA |
1.0 | 0.3 |
Dividend Payout (%) |
64 | 60 |
Return on Equity ratio (%) |
9.3 | 10.3 |
Debt-Equity Ratio |
0.29 | 0.14 |
Debt Service Coverage Ratio |
3.2 | 58.7 |
Return on Investment (%) |
7.68 | 13.73 |
Ratios with movement of +/- 25% in the year
1. Debt-equity Ratio: Debt-equity ratio increased due to utilisation of working
capital demand loans to offset the delay in collections from certain state
government corporations.
2. Return on Investment Ratio: Interest income is lower mainly because collections
were delayed, temporarily reducing surplus cash available
for deposits.
The financial statements for the year ended March 31, 2026,
have been prepared under Indian Accounting Standards
("Ind AS") according to notification by the Ministry of Corporate
Affairs under the Companies (Indian Accounting Standards)
Rules, 2015, as amended.
The Company generated Net turnover growth of 3.65%
vs the previous year. The Gross turnover for FY26 stood at
Rs.17,45,621 Lakhs, with a reduction of 10% compared to the
previous year. Your Company achieved a Net Turnover of
Rs.9,23,266 Lakhs during FY26as against Rs.8,90,735 Lakhs during
FY25. EBITDA for the year under review stood at Rs.84,991 Lakhs
as compared to Rs.87,465 Lakhs in the previous year, a reduction
of 2.8% over the previous year. Profits before taxation for the
year stood at Rs.56,189 Lakhs. Profits before taxation for the last
year stood at Rs.60,335 Lakhs.
DIVIDEND
We take pleasure in proposing a Dividend of Rs.10 per Equity Share of
Rs.1 each for the year ended March 31,2026, su bject to the approval
of the Shareholders at the ensuing Annual General Meeting
("AGM") of the Company to be held on August 12, 2026. The
total Dividend is Rs.26,441 Lakhs, which amounts to about 64% of
the Profit after Tax. The Dividend declared for the previous year
was Rs.10.00 per Equity Share of Rs.1 each.
TRANSFER TO RESERVES
The Company does not propose to transfer any amount to the
General Reserve.
CAPITAL
The Authorised Share Capital of the Company stands at Rs.99,898
Lakhs comprising Equity Share Capital of Rs.41,298 Lakhs and
Preference Share Capital of Rs.58,600 Lakhs. The Issued,
Subscribed, and Paid-up Equity Share Capital of the Company
as on March 31, 2026, remains unchanged at Rs.2,644 Lakhs,
comprising 26,44,05,149 Equity Shares of Rs.1 each.
MANAGEMENT DISCUSSION AND ANALYSIS
Industry Overview
Beer, one of the worlds oldest and most widely enjoyed
beverages, continues to serve as a symbol of social connection
and shared experiences. In India, it remains a popular choice
among consumers, even within a highly regulated and taxed
operating environment.
While beer currently accounts for a relatively modest share of
overall alcohol consumption in Indiaand per capita consumption
remains significantly below global averages, the category is
witnessing strong momentum. Indias beer industry continues
to evolve as one of the most dynamic segments within the
broader beverage alcohol market, supported by favourable
demographics, rising urbanisation, and increasing social
acceptance. A young adult and aspirational consumer base,
coupled with growing disposable incomes, is expanding the
category and driving greater adoption across both metro and
emerging markets.
Consumer preferences are steadily shifting, with premiumisation
gaining momentum alongside a continued need for accessible
value offerings. This is reflected in the growing interest in
low and no-alcohol variants, particularly among younger
legal drinking age (LDA) consumers, alongside a clear trend
toward premiumisation.
Beer is increasingly associated with social occasions, experiences,
and lifestyle-led consumption, leading to broader demand across
formats and occasions. At the same time, innovation in flavours,
formats, and positioning is helping brands stay relevant in a
rapidly changing consumer landscape. The market continues
to be anchored by the strong and mild beer segments, while
premium offerings are gaining traction and expected to outpace
broader category growth.
The industry operates within a complex regulatory framework,
with state-level variations influencing pricing, distribution,
and route-to-market strategies. While this creates structural
challenges, it also underscores the importance of strong
execution and localised approaches. Overall, low per capita
consumption and evolving consumer behaviour provide
significant headroom for long-term growth, positioning India as
a structurally attractive market for the beer industry. Companies
that remain agile, innovate continuously, and align closely with
changing consumer expectations are well-positioned to unlock
this opportunity. In this context, your Company, with its strong
portfolio and market presence, is well-placed to lead and shape
the ongoing evolution of the beer category in India.
Marketing
-The Kingfisher portfolio outperforms the category across
both mainstream and premium segments, with brand power
for both Kingfisher and Kingfisher Ultra brands at an all-time
high, signalling renewed strength and relevance.
-In the mainstream segment, the Kingfisher brand delivered a
1.5% market share gain.
-Kingfisher is on a journey to reclaim the brands core
identity, "King of Good Times". This was activated through
high-impact integrated campaigns across the two biggest
passion spaces for consumers: sports and music. Across
sports and music, Kingfisher evolved from passive presence
to active participation, moving beyond visibility to creating
experiences people wanted to be part of.
-The past year was a defining one for sports-led engagement.
Kingfisher stayed true to its legacy through a powerful
presence in the Indian Premier League, partnering with
seven IPL franchises and reviving its iconic sonic identity,
Oolalaleo, bringing energy back into culture. But the brand
also looked beyond traditional spaces. It made a progressive
move into the Womens Premier League with breakthrough
in-stadium activations-signalling freshness, inclusivity, and
cultural relevance. Beyond cricket, Kingfisher expanded into
football through associations with the Argentina Football
Team and the Indian Super League, widening the brands
sporting footprint and connecting with new fandoms.
-In music, Kingfisher activated Good Times through high-
impact collaborations that placed music and culture at
the centre of the brand experience. These partnerships
were designed to create moments that spark fun and bring
people together. A standout example was the collaboration
with Punjabi pop superstar Karan Aujla, tapping into one of
Indias most exciting music movements and deepening the
brands connection with younger audiences.
-This momentum was underpinned by a sharp, commercial
strategy - balancing price competitiveness, resetting the
spirits-beer value equation to unlock category growth, and
expanding beer occasions to reinforce category leadership.
In parallel, the portfolio is evolving to reflect shifting
consumer needs. While new and emerging consumers are
moving towards more sessionableand lower bitterness beers,
the core consumer remains loyal to the classic Kingfisher
taste profile. Addressing this duality, Kingfisher Smooth was
introduced as a mainstream sessionable offering designed
to recruit younger consumers entering the category, while
strengthening penetration and preference.
-In the premium segment, the Kingfisher Ultra portfolio
delivered a standout 30% growth, led by Ultra Max at an
exceptional 62%. Together, the variants drove a +2% share
gain in the premium segment, reinforcing strong, sustained
momentum. This growth is being scaled through continued
investments in capacity expansion and best-in-class trade
execution by unlocking supply, strengthening salience as the
"gold standard" in premium beer, and ensuring high-impact
presence across consumer touchpoints.
Heineken? Silver: Growth engine for Heineken? franchise:
In 2025, Heineken? Silver sustained its strong growth trajectory.
Targeted distribution expansions and consumer activation
programs boosted penetration in core markets like Goa,
Maharashtra and Karnataka. The brand expanded into new
territories, including West Bengal, capitalizing on the rising
demand for premium beers. Launching Heineken? Silver draught
in Karnataka further diversified the portfolio, appealing to urban
millennials craving lighter, premium options.
Heineken? Original maintained a steady performance, year
on year.
Premium Positioning: Sports Partnerships and Immersive
Experiences:
In 2025, Heineken? Silver reinforced its premium credentials
through amplified ties to world-class sports, leveraging
official UEFA Champions League and Formula 1 partnerships.
Strategic collaborations with top digital publishers
(Brut and Times of India) and influences introduced exclusive,
India-first Heineken-only can experiences, generating over
65 million in cross-platform reach and strong positive sentiment
of the brand.
Campaign highlights featured a 360 deg activation with a
high-stakes contest that transported a dedicated football fan
to the Munich Champions League final, complete with premium
match access. Complementing this, three high-profile influences
attended the Singapore Grand Prix, securing unparalleled
experiences like podium tours, exclusive chats with drivers and
F1 legends, and ORBR garage visits.
On-ground efforts amplified impact via high-visibility activations
and live screenings, including fan parks in Mumbai and
Bengaluru for the first time in India. These engaged thousands
with immersive experiences and collaborations.
Outlook: Momentum into 2026:
Looking ahead, Heineken? is primed for accelerated growth
with planned expansions of Heineken? Silver in new territories,
leveraging its strong product superiority and international
associations in premium sports.
Amstel Grande has built a good early momentum and received
great consumer acceptance across Maharashtra, West Bengal,
Karnataka, Uttar Pradesh last year. The brand saw in-store
activations in key outlets with consumer promotions and an
experiential Durga Pujo activation in Kolkata. This year, the
brand is set to truly ignite excitement among premium beer
consumers. At the heart of this is the Manchester United
activation - bringing fans together with exclusive giveaways
of licensed merchandise and the ultimate fan experience of
sending consumers to Old Trafford.
Sales
At United Breweries, we recognize that a forward-thinking,
agile sales strategy is essential to sustaining growth and
capturing new market opportunities. In alignment with our
commitment to drive operational excellence and deliver value
for our stakeholders, we embarked on a comprehensive Sales
transformation initiative. This strategic initiative was designed
to adapt to the evolving dynamics of the market and to ensure
we remain at the forefront of the industry.
Creating New Verticals for Streamlined Execution:
We introduced new verticals within the Sales organization that
serve as Centers of Excellence on Route to Consumer (RTC)
and Revenue Margin Growth (RMG). These specialized teams
manage areas of Sales Capability, Commercial Excellence, eB2B
to enhance our overall reach and operational efficiency, pricing
strategies, revenue unlock and trade terms. Additionally, we have
expanded our Trade Marketing and MONT (Modern On-Trade)
teams to bring more focused attention to win with shoppers
within the store at the moment of truth. By restructuring our sales
organization, we are poised to achieve even greater alignment
across cross-functional teams, more effective planning, leading
to superior execution in the market.
Equal Focus on Input and Output Metrics:
As part of our commitment to a result-oriented sales process,
we have refined our approach by balancing both lead and
lag metrics. We now focus on a range of key performance
indicators (KPIs) that track and drive distribution efficiency &
range-availability, cooler penetration & purity, market coverage
and in-store brand visibility.
Our holistic approach extends beyond primary volumes, ensuring
that we are just as focused on secondary volumes and overall
market share. Additionally, a strong emphasis on high-margin
SKUs allows us to optimize our product mix, which in turn drives
margin expansion while meeting evolving consumer preferences.
Leveraging Technology for Execution Excellence:
In line with our strategy to stay ahead of market demands, we
have made significant investments in technology to enhance
our sales processes and improve execution at every level.
Our enhanced Sales Force Automation (SFA) system now
includes geo-fencing capabilities that allow us to track the
market working with greater precision and agility. We have also
made strides in using Visual Analytics and AI to drive excellence
at the outlet level.
By leveraging data-driven insights, we are able to enable better
in-store execution, ensuring that our brands are presented in
the best possible way and that our sales teams are equipped
with the tools they need to succeed. Moreover, our use of Data
Analytics has enabled us to improve distribution, with a specific
focus on premium SKUs, helping expand our premium portfolio
in key markets and ultimately drive higher value sales.
On the digital front, we have accelerated the scaling of our
eB2B app, which now serves as a vital tool for streamlining our
Route to Market (RTM) in distributor markets. This app not only
facilitates faster and more efficient ordering but also ensures
that our distributor network remains connected and empowered
to meet demand quickly.
In line with our Win with Premium strategy, we have introduced
the Counter Salesman Incentive Program (CSM) & Waiter
Incentive Scheme (WIS) to drive premium growth. These tools
ensure that our teams are equipped to drive brand loyalty and
customer engagement on the ground by leveraging our channel
partners to foster deeper connections with our consumer base.
Looking Ahead:
As we look toward the future, we remain committed to leveraging
these structural changes and technological advancements to
drive long-term growth. Ourfocus on both operational excellence
and the use of cutting-edge tech tools, positions as well, to
continue leading in the market.
By creating more agile, data-driven processes and enhancing the
capabilities of our teams, we are not just adapting to the market-
we are shaping the future of Sales of our industry.
In conclusion, while we design what we believe to be the most
optimal structure and take advantage of advancements in
digital & technology, we never fail to recognize and appreciate
the power of our people, where nothing can replace their energy,
passion, commitment and customer relationships in the market.
We are committed to attracting & developing the best sales
talent and making UBL a great place to work.
Supply Chain
In continuity with previous years, quality improvement has
remained a key focus area in Supply Chain with continued
reinforcement of quality system and processes together with
massive investment in Automatic cleaning system and bottle
inspection on our packaging lines.
Aside of this, capability development through Total Productive
Management (TPM) practices was prioritised and standardised
across all breweries, driving productivity initiatives and cost
rationalisation this year to mitigate inflation and streamline
our processes and brewery network.
Design Sustainable Value
Design for sustainable value driven by a strong consumer-
centric approach, aligned with evolving consumer preferences
and expectations through continuous recipe optimisation to
enhance taste profiles and reduce costs without compromising
quality. Focused effort on the increased localisation of
key raw materials such as malt and hops, which not only
strengthens supply chain resilience and reduces dependency
on imports but also contributes to sustainability through lower
transportation impacts.
Innovation-KF Smooth and Bullet Mild launch
With a strong consumer-centric approach, KF Smooth has been
developed in the mainstream category, specifically tailored
to meet the preferences of consumers in key markets such as
Rajasthan, Karnataka, and Maharashtra. The product has been
designed to deliver a smoother taste profile and enhanced
drinkability, addressing regional taste expectations while
strengthening the brands appeal in competitive segments.
Bullet Mild in Karnataka focuses on delivering an affordable yet
high-quality offering within the mild beer segment, targeting
value-conscious consumers without compromising on taste
and consistency.
Quality Improvement
Continuous quality improvement through process controls and
employee ownership with quality at the shop floor. A structured
and responsive approach to complaint handling with resolution
through UB Care, the first type of its kind. The First Time Right
(FTR) concept drives the culture of doing things correctly from
the outset, improving efficiency, and reinforcing reliability in
output. Robust Contract Brewing Unit (CBU) governance that
ensures alignment, accountability, and continuous monitoring
of performance metrics across Breweries.
Introduction of Fleineken Yeast, a very important raw material,
from the Netherlands (Research and Development), reinforcing
the organisations commitment to delivering superior quality
through a holistic and continuously improving system.
Capacity Enhancement
Capacity enhancement through the adoption of high
gravity brewing, thereby optimising existing infrastructure,
and the implementation of global best practices across
brewing operations.
Total Productive Management (TPM)
During FY 2025-26, we effectively mitigated the impact of
inflationary pressures and input cost increases through a focused
portfolio of productivity initiatives across our operations. By
embedding continuous improvement practicesand strengthening
operational excellence, we enhanced resource efficiency,
optimised manufacturing processes, and reduced waste across
the value chain.
A key enabler of these improvements was our continued
investment in capability development through TPM. By building
employee capabilities, fostering a culture of ownership, and
driving structured problem-solving, we improved equipment
reliability, enhanced overall operational efficiency, and delivered
sustainable productivity gains. These initiatives helped offset
cost inflation while reinforcing our commitment to operational
excellence and long-term value creation.
These systems are embedded into daily routines that emphasise
critical performance metrics. Training programmes were further
strengthened, with a strong focus on shop floor engagement and
first-line management development.
Aligned with PIEINEKENs global sustainability ambition of
achieving net zero in operations (Scope 1 and 2) by 2030 and
net zero across the value chain by 2040, the Company has made
significant progress.
In FY 2025-26:
-96.7% of thermal energy used was derived from renewable
sources (biomass by-products)
-96.3% of electricity consumed at Company-owned
breweries was from renewable sources, supplemented with
International Renewable Energy Certificates (iRECs)
-In responseto growing concerns about water availability, the
Company initiated Water Source Vulnerability Assessments
at most breweries, with the remaining to be completed
in a year. A broader set of water efficiency initiatives,
inspired by HEINEKENs global best practices are being
rolled out across all breweries, aiming for world-class water
consumption levels.
Research and Development
The Companys Research and Development (R&D) function
continues to play a pivotal role in driving growth by strengthening
capabilities, developing new products, enhancing existing
offerings, and improving productivity while consistently focusing
on cost optimization
Digital & Technology
Digi First UBL : Accelerating ahead on our dream to be the Best
Connected Brewer
Our ambition to become the best-connected brewer reflects our
bold vision to elevate our competitiveness through the power
of Digital and AI. Moving from a Digifit to Digifirst UBL means
we are not just making incremental changes but transforming
how we engage consumers, customers, partners and all our
employees in an Al-enabled world.
We have made significant strides in embedding this digital
transformation embedded with a "Design to Win" mindset to
drive Growth & Productivity whilst making our enterprise Future
Fit & resilient. Al-powered solutions are embedded across our
business, helping us enhance decision-making, boost efficiency
and unlock value on scale.
Digitizing Route to Consumer:
We have an ambition to win in all stores, and digital plays the
role of a competitive advantage. We have embedded Digital &
Analytics to drive execution excellence and embed execution
discipline. The Salesforce Automation (SFA) platform PRIDE has
been at the centre of this transformation, powering ourfield force
with seamless execution & recommendations on their fingertips.
For our distributor markets, we have wired the ecosystem with
Distributor Management & eBusiness capabilities. The progress
made across Daily Active usage; movement of execution
fundamentals & excellence metrics stands as a testament to
this transformation.
Embedding AI across the Enterprise:
Al-powered solutions drive decision-making across the enterprise.
Our BI Platform, DataBrew, continues to accelerate on user
adoption with coverage now spanning across all functions.
The adoption has gone up 2X over last year with deliberate
interventions on functional coverage expansion & actionability
of insights. The generative AI layer further adds to this capability
by sharing quick narratives for easy consumption & action.
Shelf Image Recognition continues to power Field execution and
ensure we are winning with SKU availability across outlets and
with visibility excellence across our design standards. AI also
powers our product recommendation (Must Sell List) at an outlet
level and avoids out-of-stock scenarios. This execution is also
reviewed for business impact with the best of causal analytics
models, allowing us to double down further on this at scale.
Generative & Agentic AI use cases have picked up strong
adoption of >95% Monthly active usage and an NPS score >60.
We continue to have a "Problem Statement" first approach to
ensure we deploy the transformative tech where it creates both
learning opportunities & incremental value
Simplifying and automating enterprise business processes:
We drive productivity across enterprise processes with a joint
view of Process, People & Technology. On the Demand to
Warehouse stream, we focused on the Sales & Operations
Planning (S&OP) processes to work together with the Supply
Chain planning team to digitize both the Demand & Supply
planning capabilities. The Machine learning models deployed
there are able to show the anomalies, organize for business
building, and help us drive the input metric of forecast accuracy.
On Source to Pay we have deployed digital capabilities in our
procurement & payment processes to accelerate the Purchase
Order cycle times and improve payment on time. Within Market
to Cash, we have focused on our Claims settlement process
for trade to ensure we step change our agility of settlement.
On Record to Report, we have driven simplification on our
Month-End Closing processes with automated reconciliations.
The hyper automation capabilities deployed across these
processes have together unlocked 60,000 person hours and are
a significant step-up vs last year. This has come with a sharp
deployment of Robotic, Self Service & Agentic Automation
across the core workstreams, particularly across Sales, Finance,
Supply Chain and HR Processes. We have also seen strong take-
up of personal task automation, freeing up valuable time across
the organisation.
Enforcing discipline on core activity systems has been at the
heart of the simplification journey. For shop floor workers, eTPM
(Smart Worker) has been a focus as an activity system and the
attendance management system for contract staff. This has
allowed us to embed TPM ways of working across our breweries
and drive both governance & gaurdails around personnel cost
per hectoliter.
Secure & modernize Digital Backbone:
As the digital and cyber threat landscape continues to evolve,
we must maintain a security-first posture and strong design
governance. Your Company has implemented best-in-class
measures to safeguard againstthe cybersecurity risks across the
Information Technology (IT) and Operations Technology (OT)
landscape. We also invested in threat intelligence and security
awareness programmes, ensuring our teams are informed and
vigilant. Enhanced compliance and control assessments have
further reinforced our commitment to maintaining a secure
and robust digital ecosystem. In a spirit of creating Secure
by Culture behaviours, we have looked at gamification &
personalization. Individualised score cards & nudges power the
future-fit behaviours on Cybersecurity.
Creating a digitally enabled organization:
We are accelerating our digital transformation, including
designing our organisation to strengthen strategic focus,
governance, efficiency and agility.
We continue to focus on input metrics of NPS (User Advocacy)
and Adoption (Monthly Active Users) as key metrics in ourjourney
to create a digitally enabled organization. The Digital Helpdesk
(Get Service) is now embedded across our key operations and
helping us drive both user advocacy and service resilience.
AI Fluency, Security awareness and deep adoption of the
core activity system continue to be at the heart of our Digital
Upskilling program, which is well embedded via our Digital
learning system and personalized scorecards. The Digital Council
continues to be the champion of transformative technology with
applied learning on the best of AI, Hyper automation & Design
thinking for disruptive problem solving.
Human Resources
At UBL, we are committed to brewing a people-first culture where
individuals are empowered to take ownership, collaborate with
purpose, and turn ideas into impact. Our people are at the heart
of our growth, and we continue to build an inclusive and high-
performing workplace that is ready for the future.
Caring for our Health and Safety:
At UBL, the Health, Safety, and Well-Being of our employees and
workmen remain ourtop priorities. We recognize that a safe and
supported workforce is the foundation of sustainable business
growth, and we are committed to providing an environment that
nurtures both physical and mental well-being.
Safety is not just a compliance requirement; it is a core value. We
stand by our principle of "Safety First, Safety Always." Our safety
strategy is anchored in addressing high-risk areas, including
occupational safety, process safety, and in-plant traffic safety.
Regular risk assessments and control audits are conducted to
strengthen and sustain safety systems across sites.
We advanced our safety standards by consistently focusing on
Contractor Safety Management who will be engaged in new
and expanded projects in breweries. Our corporate safety team
now ensures every project goes through a Pre-Qualification of
Contractors on safety aspects before onboarding, ensuring only
qualified contractors with excellent track record on safety are
only being onboard to ensure the projects are executed in a safe
manner without injuring any of them or damaging the property.
A major focus this year was elimination of Forklift and Pedestrian
interactions. Based on a detailed HAZID (Hazard Identification)
analysis of emergency evacuation, we implemented key
actions such as pedestrian-Powered Industrial Vehicles (PIV)
segregation, controlling the speed of the PIV and mitigation
of risks linked to forklifts. These measures led to a reduction
in high-risk situations, enhancing both worker safety and
operational flow.
We broadened our safety reporting by extending our safety
performance monitoring to Sales and Marketing functions.
We also revised our key safety indicators, Accident Frequency
Rate (AFR) and Accident Severity Rate (ASR), to align with
OSHA benchmarks. A new reporting category, "Hi-Potential
Near Misses" was introduced to flag incidents with life-altering
potential and guide leadership on early intervention and
systemic corrective actions. These steps reinforce our human
performance philosophy, which focuses on the relationship
between people, systems, tools, and culture.
To prevent incidents, we introduced the Life Saving Commitment
(LSC), a set of non-negotiable safety rules focused on proactive
prevention, learning from failure, and improving safeguards. The
LSC builds psychological safety, encouraging people to speak up
and focus on systems, not just symptoms.
A unified scale called Brewery Safety Index (BSI) is rolled
out across the breweries. BSI is UBLs enterprise wide safety
performance management framework designed to objectively
measure, compare, and improve safety performance across all
breweries on a single, unified scale.
BSI converts multiple safety dimensions into one composite
index, enabling:
-Clear visibility of safety performance at each brewery
-Early identification of weak signals before serious
incidents occurs
-Fact-based prioritization of leadership attention and resources
-Healthy competitiveness and accountability across sites
We continue to invest in open dialogue and shared learning
through our Safety Committees, celebration of safety events
like National Road Safety Week, National Safety day/week, Fire
Safety Week, Chemical Disaster Prevention Day, Global Safety
Week where we apply the 5R of safety behaviour: Recognise,
Respond, Report, Record, and Review. These reinforce our
commitment to celebrating positive behaviours and respectfully
addressing deviations
Unlocking the Potential of Our People:
At UBL, we believe our people are fundamental to delivering
sustainable growth and long-term value. During the year, we
continued to invest in a learning and development ecosystem
that is purposeful, accessible, and closely aligned to evolving
business needs. Ourapproach focuses on enabling colleagues to
perform with excellence in their current roles, while systematically
building capabilities forthe future.
We further strengthened our talent management foundations
through the continued evolution of our People Review and
Potential and Development processes. These remain central
to how we identify potential, enable career progression, and
build robust succession pipelines for critical roles. Talent reviews
are firmly embedded into business rhythms, enabling leaders to
have regular, forward-looking conversations on performance,
potential, development priorities, and readiness for broader roles.
This year, we reinforced shared ownership for talent outcomes
through focused leader enablement, clear governance, and
consistent application of ourTalent Beliefs and Potential Model
across functions.
To support a culture of high performance, we sustained
structured communication and capability-building interventions
for both managers and employees across the performance cycle.
These interventions focused on strengthening the quality of
objective setting, continuous feedback, development planning,
and meaningful performance conversations, reinforcing
accountability while enabling growth-oriented dialogue.
Connecting and Developing Our People:
Cultural integration and collaboration remained a priority,
particularly as we continued to build future-fit teams. Our
onboarding program for new colleagues continued to play a
critical role in introducing UBLs culture and policies, including
but not limited to our Purpose, Values, and Behaviours in a
meaningful and experiential manner. These onboarding sessions
were expanded to take up more time, cover a broader range of
functional sessions, ensure market and brewery visits for new
colleagues, and include structured feedback and improvement.
Engaging playbooks were created for welcoming new colleagues,
and sharing information with them on policies, benefits, tools and
key points of contact among other critical pieces of information.
We continued to expand access to learning through digital
platforms and simplified learning administration. Our learning
platform, UBREW further evolved as a central hub for functional
capability building, leadership learning, and self-driven
development. Colleagues accessed a broad mix of curated
internal content, global HEINEKEN resources, and external
learning offerings, enabling flexible, anytime-anywhere learning
and reinforcing a culture of continuous skill-building.
Developing strong people leaders remained a strategic
priority. Our early career talent programs continued to serve
as a critical feeder for future capability, providing immersive,
hands-on learning journeys for management and functional
early career talent across the business. These programs
combine structured learning with on-the-job exposure and real
business problem-solving, building strong functional depth and
enterprise understanding.
We scaled leadership capability through the LEAD programme
that focuses on enabling managers to deliver results, shape
the future, connect meaningfully with teams, and develop both
self and others - capabilities critical to sustaining performance
and engagement.
In addition, UBL leaders continued to participate in global
and regional HEINEKEN leadership programmes, enabling
exposure to diverse business contexts, cross-market learning,
and deeper reflection on leadership impact. These programmes
support the development of leaders who can navigate
complexity, lead change, and drive growth in an increasingly
dynamic environment.
Function-led learning also gained momentum, with internal
experts delivering targeted capability-building interventions
across key roles. Mandatory and compliance learning achieved
deeper reach through structured delivery models, particularly
within our breweries. We also strengthened our manufacturing
skilling agenda through partnerships with ITIs and long-term
development pathways for Permanent Workmen, supporting
both capability enhancement and employability.
As we look ahead, we remain committed to unlocking the full
potential of every UBL colleague by fostering curiosity, investing
in development, and building a future-ready organization
anchored in learning and accountability.
Creating a Diverse, Equitable and Inclusive Workplace:
Our commitment to diversity, equity, and inclusion remains
integral to how we build a resilient and high-performing
organization. We continue to focus on creating a workplace
where colleagues across gender, life stages, and abilities feel
supported, respected, and able to contribute meaningfully.
During the year, we refreshed and restructured our DEI Council
to accelerate progress and sharpen accountability. The Council
now operates through four focused workstreams - Safety &
Security, Wellbeing, Growth, and Belonging - each led by cross-
functional representatives and supported by the People team.
This structure enables targeted interventions while maintaining
a holistic view of inclusion.
Acrossthese workstreams, initiatives were advanced to strengthen
inclusive practices, expand mentorship and development
opportunities for women, enable safe space conversations, and
deepen awareness through targeted learning. Progress istracked
through defined measures and reflected across engagement
insights, talent metrics, and policy enhancements, reinforcing
our commitment to data-informed action.
Inclusive leadership continues to be embedded as a core
capability. People managers completed refreshed learning on
inclusive leadership behaviours, using interactive formats and
real-life scenarios to enable practical application. These efforts
support psychological safety, equitable decision-making, and
everyday inclusion across teams.
Our gender diversity efforts continue to show sustained progress.
Representation of women in executive roles has increased
significantly over the past few years, supported by deliberate
hiring, development programmes, and targeted leadership
interventions. These initiatives enable women leaders to navigate
key career transitions and build readiness for larger roles.
Nurturing Our Companys Culture:
At UBL, culture is shaped by what we consistently do, not just what
we say. We place strong emphasis on listening to our colleagues
and translating feedback into meaningful action, ensuring that
culture remains a lived experience across the organization.
Employee listening continued through our annual Climate
Survey and Pulse Surveys, providing comprehensive insights
into engagement, leadership effectiveness, inclusion, wellbeing,
and performance enablement. Survey findings are shared
transparently and discussed across leadership forums, with clear
expectations for action planning at the team and functional
levels. Progress against actions is reviewed regularly, ensuring
accountability and sustained follow-through.
To strengthen connection and collaboration, we continued
to invest in platforms that bring leaders and talent together
across functions and geographies. Initiatives such as Winning
Together Everyday reinforce shared ownership for results and
deepen alignment across teams through jointly owned action
plans and execution rhythms.
Integrity, transparency, and fairness remain foundational to our
culture. We are committed to maintaining a safe and respectful
workplace where colleagues feel confident to raise concerns
without fear of retaliation.
Staying Connected with our Colleagues:
At UBL, we believe that a connected, engaged, and inspired
workforce is central to our success. We continue to foster a culture
of belonging, where every voice matters, diverse perspectives are
valued, and collective energy is aligned towards shared goals.
We remained focused on strengthening our culture of
collaboration through "Winning Together" as an ongoing way
of working across the organisation. This continues to enable
stronger alignment across teams, encouraging shared ownership,
cross-functional collaboration, and a unified approach towards
business priorities.
As part of our Future Fit Teams agenda, we continued to
strengthen our organisational capability and build a robust
talent pipeline for the future. Women represented 24% of our
new hires during the year, reflecting our continued focus on
improving gender diversity. We remain committed to further
strengthening representation and building a more inclusive and
balanced workforce over time.
We also significantly enhanced our onboarding experience
to make it more structured, immersive, and engaging. The
programme is now designed as a comprehensive, multi-touch
journey, with shared ownership between HR Business Partners
and the Central People Team. Our virtual induction was
strengthened into a more robust experience, supported by
leadership interactions across functions, enabling new joiners
to build early connections with the organisation. This is further
complemented by brewery and market immersions, providing
on-ground exposure to our operations and business realities.
Additionally, our pre-onboarding platform, Apical, continues
to play a key role in building early engagement and readiness.
By connecting with employees even before Day 1, we are able
to create a more seamless, informed, and positive onboarding
experience, setting the foundation for long-term engagement.
Rewarding and Recognising Excellence:
At UBL, we believe in cultivating a culture where appreciation is
part of everyday work. Recognising our people not only reinforces
our values and behaviours but also creates an environment
where exceptional contributions and moments that matter are
celebrated meaningfully.
We continue to use our new Recognition Framework for all
executives that embeds appreciation into the flow of work. The
framework has been enabling a consistent and equitable way to
celebrate outstanding performance, exemplary behaviours, work
anniversaries, and learning achievements.
The MyRewards platform offers structured recognition across
four categories:
-Functional Excellence Awards: Celebrating individuals and
teams who go above and beyond to live UBLs values and
create impact in their function and beyond.
-Exemplary Performance Awards: A manager-led award
designed to acknowledge those who consistently deliver
exceptional results or display role model behaviours.
-Stronger Together Appreciation: A peer-to-peer,
non-monetary appreciation for colleagues who demonstrate
collaboration and values in action.
-Milestone Awards: Celebrating significant service
anniversaries at UBL at their 2, 5, 10, 15, 20, 25, and
30-year milestones.
Streamlining People Policies:
In parallel, we undertook a comprehensive review of our people
policies to ensurethey are equitable, contemporary, and aligned
with the evolving needs of our workforce. Updates were made
across key areas including leave, enhanced medical insurance,
parental leave, internal job postings, and travel policies,
simplifying policy language and making benefits easier to
understand and access.
Strengthening our Industrial Relations:
(a) Long-Term Settlements (LTS) and Industrial Relations
Excellence
During the year, the Company made significant progress in
strengthening industrial relations across its manufacturing
network through the successful conclusion of multiple Long-Term
Settlements (LTS) at key brewery locations. These agreements
reinforced our commitment operational stability, supported long-
term workforce engagement, and provided a strong foundation
for sustainable business performance.
The settlements reflected a forward-looking approach that
integrated productivity enhancement, capability development,
operational excellence initiatives, and a strong focus on
workplace safety and product quality. By fostering constructive
employee relations and aligning workforce objectives with
business priorities, the Company strengthened organisational
resilience and supported sustainable operational performance
across its manufacturing footprint.
(b) Mangalore Brewery Closure and People Transition
During the year, the Company successfully completed the closure
of the Mangalore Brewery in Karnataka as part of its broader
supply chain optimisation strategy. The transition was executed
through close collaboration between business, HR, and leadership
teams, ensuring continuity of operations and adherence to all
applicable statutory, regulatory, and governance requirements.
Particular emphasis was placed on managing employee related
matters with fairness, transparency, and compliance. The closure
was completed in a structured and responsible manner without
material disruption to the Companys broader operations,
demonstrating its ability to effectively execute strategic
transformation initiatives while maintaining a strong focus on
its people and organisational values.
(c) Digitisation & Data-Led Decision Enablement
In collaboration with Technical Team, Supply Chain HR has
strengthened its digitisation agenda by driving consistent
and disciplined adoption of the Attendance Tracking system
across all breweries. This has enabled standardised visibility on
workforce attendance, deployment patterns, and compliance,
significantly reducing reliance on manual tracking and location-
specific practices. As a result, leadership now has greater
confidence in attendance integrity, improved governance over
workforce utilisation, and a more uniform people-management
framework across the supply network.
In parallel, Power BI dashboards are developed to convert
workforce and attendance data into actionable insights for key
stakeholders in the Breweries and in SCLT. These dashboards
enable trend-based analysis, exception identification, and fact-
based decision-making on manpower planning, productivity,
and cost management at an enterprise level. Together,
improved system usage and analytics capability mark a clear
shift from transactional HR operations to insight-driven people
decisions, strengthening control, transparency, and strategic
responsiveness across the Supply Chain.
Listening to our Colleagues:
At UBL, integrity, transparency, and fairness form the foundation
of how we operate. We are committed to fostering a safe and
respectful work environment where every employee feels
empowered to raise concerns and share feedback without fear
of retaliation. Upholding our values and the law of the land is
core to our culture.
Our Speak Up mechanisms continue to provide confidential
channels for reporting concerns, supported by trusted
representatives across the organization. All matters raised are
handled with seriousness, discretion, and care, reinforcing trust
in the system.
Beyond formal channels, leaders continue to engage with
employees through townhalls, CEO connects, functional forums,
surveys, and direct conversations. These platforms enable open
dialogue, foster transparency, and ensure leadership remains
connected to the voice of the organization. Together, these
efforts reinforce a culture of trust, accountability, and continuous
improvement as we build a future-ready UBL.
In Summary:
UBL has 1521 employees on its rolls across all locations as of
March 31,2026.
Total employee benefit expenses for the year stood at Rs. 75,688
Lakhs, as compared to Rs. 71,312 Lakhs in the previous year.
This constituted 4.34% of gross revenue from operations.
Your directors place on record their sincere appreciation to all
employees for their contribution towards the continued success
of the organization.
CORPORATE SOCIAL RESPONSIBILITY AND BUSINESS
RESPONSIBILITY & SUSTAINABILITY REPORT
Corporate Social Responsibility (CSR)
The Companys approach focuses on creating long-term value
for both people and the environment, while responding to the
evolving priorities of the communities. Guided by the CSR Policy
and its emphasis on inclusive and need-based development,
the Company strengthened the interventions across four key
focus areas - Environment, Women Empowerment, Address
Harmful Use, and Community Development. During FY 2025-26,
Rs. 1,045 Lakhs has been invested in CSR initiatives, working closely
with credible implementation partners to deliver measurable and
sustained impact. The CSR Policy is available on the Companys
website www.unitedbreweries.com and remains unchanged
during the year under review.
In FY 2025-26, more than 70% of our CSR expenditure was
directed towards the Environment focus area. The Company
implemented twelve (12) projects across Rajasthan, Telangana,
Maharashtra, Goa, Andhra Pradesh, Karnataka and Kerala,
supporting water conservation, afforestation, sustainable
agriculture and waste management initiatives. These efforts
have positively impacted 1,65,000+ lives. The projects
undertaken during the year are expected to generate a potential
annual volumetric water benefit of 3,36,711 kl, based on the
volumetric water benefit accounting methodology developed
by the World Resources Institute (WRI).
The Women Empowerment initiatives continued to promote
economic independence and capacity building for marginalised
women in Odisha and Maharashtra. Through these efforts,
600+women were supported in strengthening their skillsets and
income-generation potential.
Under the Address Harmful Use focus area, the Company
continued its efforts to promote responsible consumption and
safer behaviours within communities. During the year, the
implementation of Project Kartavya Phase 2, our flagship road
safety and responsible behaviour initiative in Uttar Pradesh,
was continued. The project engages citizens at a critical
touchpoint - Regional Transport Offices (RTOs), using structured,
technology-enabled learning modules to build awareness on
the risk associated with driving under the influence of alcohol,
understanding road signs and traffic regulations, safe pedestrian
practices, speed and distraction management, and responsible
on-road behaviour. Through trained facilitators and dedicated
sensitisation labs established across 3 RTOs in Prayagraj, Kanpur
and Aligarh, the initiative has sensitised 36,200+ citizens, while
also strengthening the capacity of local authorities to sustain
the programme beyond the project lifecycle.
Under the Community Development focus area, the Company
continued to prioritise access to safe drinking water and essential
community needs. During the year, seven (7) initiatives were
implemented across West Bengal, Andhra Pradesh, Haryana,
Karnataka and Tamil Nadu, supporting improved water
access and strengthening community infrastructure. These
interventions have positively impacted 7,700+ lives.
Awards
Total Productivity Management (TPM)
-Breweries at Khurda and Ellora have received the HEINEKEN
TPM Iron certification award.
Corporate Social Responsibility
-The Company was awarded Outstanding CSR Impact at
Spiritz Conclave & Achievers Award 2025, in recognition of
the collective efforts to create meaningful impact across our
four CSR focus areas, Environment, Women Empowerment,
Address Harmful Use and Community Development.
Sustainability
-During the year, the Company was ranked among Indias
Top 60 Most Sustainable Companies (IMSC) 2024-25 by BW
Sustainability World, advancing to rank 44 from rank 73 in
the previous year.
Environment and Sustainability
The Company continues to advance its sustainability agenda
through Brew a Better India (BaBI), aligned with HEINEKENs
Brew a Better World 2030 ambitions and broader EverGreen
2030 strategy. Sustainability remains integrated into core
business priorities, with a focus on strengthening business
resilience, improving operational efficiency, and supporting
responsible growth through progress across water stewardship,
climate action, and circularity.
During the year, the Company continued to strengthen
its environmental performance through a combination of
operational efficiencies, technology interventions, and improved
cross-functional governance. These efforts enabled meaningful
progress across key environmental priorities while reinforcing
long-term resilience across operations and the wider value chain.
Under climate action, the Company sustained a high share of
renewable energy across its operations through a mix of biomass
and renewable electricity. Renewable sources contributed 96.5%
of the Companys total energy consumption. Total Scope 1 and
Scope 2 emissions stood at 7,132 tC02e, representing a 92%
reduction from the FY22 baseline. The Company continues
to explore opportunities to further strengthen its renewable
energy portfolio through long-term sourcing mechanisms and
operational optimisation.
Water stewardship remains a critical focus area, particularly in
water-stressed regions. The Company continued to reduce water
intensity across breweries, achieving a consumption ratio of 2.83
kl/kl, supported by process optimisation, recovery systems, and
adoption of global best practices. Beyond operational efficiency, the
Company continued to strengthen its basin-level approach to water
stewardship by advancing water balancing initiatives across priority
watersheds, with a focus on improving long-term water security and
enhancing resilience in the communities where it operates.
The Company also continued to drive progress towards its
circularity ambitions through improved resource efficiency and
waste management practices. Approximately 76% of volumes
were sold in reusable formats during the year. Over 90% of waste
generated across operations was diverted through reuse and
recycling pathways, reflecting the Companys continued focus
on reducing waste and strengthening circular practices across its
operations. The Company is also evaluating scalable solutions
for by-product utilisation across breweries to further strengthen
circular practices.
Beyond operations, efforts to build sustainable workplaces
have been expanded through the adoption of environmentally
responsible materials and practices across offices and sites. These
initiatives reflect the Companys commitment to embedding
sustainability across its value chain.
The Company remains focused on delivering its 2030 ambitions,
including progressing towards net zero emissions in production,
improving water efficiency to 2.9 kl/kl at the overall level and
2.6 kl/kl in water-stressed sites, and strengthening circularity
outcomes. Sustainability continues to be enabled through strong
governance, with oversight from the CSR and ESG Committee
and regular review by the Board.
Business Responsibility & Sustainability Reporting (BRSR)
The Ministry of Corporate Affairs (MCA) constituted a Committee
on Business Responsibility Reporting ("the Committee") to finalise
business responsibility reporting formats for listed and unlisted
companies, based on the framework of the National Guidelines
on Responsible Business Conduct (NGRBC). Through its report,
the Committee recommended that Business Responsibility
Report disclosures be based on ESG parameters, compelling
organisations to holistically engage with stakeholders and go
beyond regulatory compliance in terms of business measures
and their reporting.
The BRSR, as prescribed by the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 ("the Listing
Regulations") is annexed as Annexu re-A to this Boards Report.
The non-financial sustainability disclosure (BRSR Core) have
been independently assured by SGS India Private Limited.
Annual Report on Corporate Social Responsibility (CSR)
Activities
The Annual Report on CSR activities in terms of the Companies
Act, 2013, ("the Act") and the Companies (Corporate Social
Responsibility) Rules, 2014, is annexed as Annexure-B to this
Boards Report.
Environmental, Social and Governance (ESG)
Our focus remains firm on advancing our journey towards net-
zero carbon emissions, maximising circularity, reducing water
consumption, and fully replenishing the water used in our
products across water-stressed regions. On the social front, we
prioritise inclusion and diversity, foster a fair and safe workplace,
and strive to positively impact the communities we engage with.
We are building authentic partnerships to address the harmful
use of alcohol, make moderation aspirational, and provide clear,
transparent information on our products. Guided by our core
values and a strong foundation of corporate governance, we aim
to serve the interests of all our stakeholders and lead by example.
The CSR and ESG Committee, constituted by the Board, provides
oversight into the organisations ESG priorities, initiatives, and
alignment with leading ESG practices. The Committee reports
to the Board and meets regularly to review progress against the
ambitions outlined in our Brew a Better India 2030 strategy.
OPPORTUNITIES, THREATS, RISKS, AND CONCERN
Premiumisation has emerged as a central growth driver in the
beer industry, reflecting a structural shift in consumer behaviour
from volume-led to value-led consumption. As incomes rise
and consumers become more discerning, there is a growing
preference for higher-quality, differentiated offerings that
deliver superior taste, brand experience, and aspirational value.
This trend is further fuelled by urbanisation, greater exposure
to global lifestyles, and the increasing influence of younger
LDA consumers who prioritise experiences, authenticity, and
brand storytelling. Expansion of on-premises channels, wider
availability through modern trade, and the role of digital
platforms in shaping discovery have also accelerated premium
adoption. At the same time, innovation across formats-such as
craft variants, flavoured beers, and low- or mid-alcohol options-
has broadened the appeal of premium offerings. Together, these
factors are reinforcing premiumisation as a long-term driver of
beer category growth.
However, the beer industry in India operates in a highly regulated
environment, characterised by complex state-level policies,
high excise duties, and advertising restrictions. During the year,
several states made progress toward improving parity and
fairness in the taxation framework for beer, enhancing relative
affordability against other categories. In markets such as Uttar
Pradesh, beer retail expansion has also improved accessibility.
These measures have started to support industry growth,
although challenges persist in states where taxation remains
high or restrictive policies continue, including restrictions on
suppliers pricing.
At the same time, geopolitical disruptions in the latter part of the
year have led to increased inflationary pressures on input costs.
In this environment, securing timely price revisions in key markets
is critical to sustaining margins, particularly given regulatory
constraints on pricing flexibility. The Company continues to
actively engage with state governments and policymakers to
advocate for a more balanced policy environment, while driving
operational efficiencies to maintain cost competitiveness.
Liquidity and working capital management remain focus
areas, especially with state-controlled beverage corporations
impacting cash flow cycles. To address timing differences of
state dues, your Company has increased short-term borrowings
as a tactical measure. This approach ensures seamless financial
operations during periods of fluctuating payments. Additionally,
your Company is leveraging long-term borrowing to fund capex
investments, balancing short-term liquidity with long-term
growth objectives. Your Company has adopted a proactive
approach in engaging with relevant authorities to ensure
smoother operations and optimise financial health.
The competitive intensity in Indias beer market has increased,
with both domestic and global players stepping up investments
to capture emerging growth opportunities. Additionally,
craft and microbrewery segments, while relatively small, are
influencing consumer preferences around taste, freshness, and
experience, thereby driving innovation across the category.
In this evolving landscape, the successful launch of products
such as Kingfisher Smooth demonstrates the Companys ability
to respond to shifting consumer preferences and sustain its
leadership position. For the coming years, sustained focus on
brand strength, premiumisation, innovation and execution
excellence remain critical to maintaining a competitive edge.
Sustainability remains a core pillar of the Companys strategy,
anchored in "Brew a Better India" and aligned with HEINEKENs
"Brew a Better World 2030" ambitions. During the year, the
Company made steady progress across its Environmental, Social,
and Responsible pillars, supported by stronger cross-functional
collaboration and adoption of global best practices.
Underthe Environmental pillar, the Company advanced its focus
on carbon, water and circularity through targeted operational
and value chain interventions. Scope 1 and Scope 2 emissions
reduced by 92% from the FY 2022 baseline with renewable
energy contributing over 96% of total energy consumption.
Water intensity reduced to 2.83 kl/kl, supported by process
optimisation and recovery systems. Circularity efforts were
strengthened through a significant shift towards reuse-led
material management, with over 90% of waste managed
through recovery pathways and 99% of packaging recyclable
by design.
Under the Social pillar, the Company continued to strengthen
its focus on building an inclusive and safe workplace while
delivering community impact through targeted CSR initiatives.
The Company ensured 100% fair wage coverage and recorded
zero fatalities, with over 60% reduction in Lost Time Injury
Frequency Rate during the year. CSR initiatives positively
impacted over 2.09 lakh beneficiaries across 12 states, with a
focus on environment, livelihoods and community development.
Under the Responsible pillar, the Company strengthened its
efforts to promote responsible consumption through transparent
product information, responsible marketing practices and
targeted behaviour change interventions. Project Kartavya
continued to scale during the year, sensitising over 36,200
individuals on road safety and the risks of drunk driving, while
campaigns such as 0.0 Reasons Needed reinforced moderation
as a positive and contemporary choice.
Overall, sustainability continues to be embedded within the
Companys core operations and strategy, with a clear focus on
driving efficiency, resilience, and long-term value creation.
As the digital and cyber threat landscape continues to evolve,
we must maintain a security-first posture and strong design
governance. Your Company has implemented best-in-class
measures to safeguard against the cybersecurity risks across the
Information Technology (IT) and Operations Technology (OT)
landscape. We also invested in threat intelligence and security
awareness programmes, ensuring our teams are informed and
vigilant. Enhanced compliance and control assessments have
further reinforced our commitment to maintaining a secure and
robust digital ecosystem.
As the industry continues to evolve, attracting and retaining
top talent remains crucial. The Indian job market is becoming
increasingly competitive, and your Company is focused on
building a diverse, inclusive, and dynamic work culture. Leadership
development, employee engagement, and skill-building
programme remain key priorities to ensure a motivated and
future-ready workforce.
With a clear strategy focused on category growth, leadership
across mainstream and premium segments, and operational
excellence, your Company is well-positioned to navigate industry
dynamics. Backed by a strong portfolio and disciplined execution,
the Company remains committed to driving innovation,
enhancing resilience, and delivering sustained long-term value
to stakeholders.
Prospects
India continues to be one of the fastest-growing large beverage
alcohol markets globally, significantly outperforming a subdued
global environment. While global volumes declined by circa.2%
in 2025, India recorded circa.4% growth in total beverage alcohol
volumes, reaffirming its role as a key structural growth engine for
the industry (Source: IWSR).
This growth is underpinned by strong macroeconomic
fundamentals, including favourable demographics, rising
disposable incomes, and increasing urbanisation, which are
expanding the addressable consumer base. A younger adult,
more urban, and experience-driven consumer is reshaping the
beer category, with consumption increasingly linked to social
occasions, discovery, and self-expression.
Consumer behaviours are changing - Beer is evolving from a
functional refreshment to a social currency, embedded in
moments of connection, celebration, and self-expression.
This makes our brands show up through innovations and
experiences important.
A key driver of growth is the ability to cater to the Many Indias.
Premiumisation remains a key trend, with premium and above
segments growing ahead of the category. At the same time,
value offerings continue to play a critical role in driving scale
and category expansion in a price-sensitive market. Maintaining
a balanced portfolio across price tiers remains central to the
Companys strategy. Striking a balance between Value &
Premiumisation with a robust portfolio will continue to be a
focus for UBL.
Consumer preferences are also evolving toward moderation and
sessionability, driving demand for smoother, easy-drinking beers
and low-to-mid-alcohol formats. Innovations such as Kingfisher
Smooth are in response to these emerging needs. Increasing
participation from younger LDA consumers and women is
further broadening the category and creating new opportunities
for growth.
The consumption ecosystem is evolving, with on-premises
channels regaining prominence as hubs for discovery and
premium experiences. At the same time, digital influence, from
discovery to decision-making, is redefining how consumers
engage with brands.
Low per capita consumption underscores significant headroom
for long-term expansion, positioning India as a structurally
underpenetrated, high-potential market. While regulatory
developments in select states are supporting expansion,
state-level variability remains a structural characteristic of
the market.
In this dynamic environment, your Company continues to
strengthen its leadership through a well-balanced portfolio
spanning economy, mainstream, and premium segments. The
strong equity of Kingfisher, complemented by HEINEKENs global
portfolio, enables the Company to address diverse consumer
segments and occasions effectively.
Competitive intensity has increased, with both domestic and
global players stepping up investments. Emerging segments
such as craft and microbreweries, though small, are influencing
consumer expectations and driving category innovation.
In response, your Company is accelerating investments in brand
building, premium portfolio expansion, innovation, digital
capabilities, and execution excellence. Focus areas include
enhancing cold availability, strengthening route-to-market,
and leveraging data-driven insights, while managing cost
pressures through strategic sourcing, productivity initiatives,
and calibrated pricing.
With a strong foundation and a forward-looking strategy, your
Company is well-positioned to capture the significant growth
opportunities in the Indian beer market.
Capex Programme
Your Company remains firmly committed to pursuing
strategic investments that support sustainable growth,
enhance operational excellence, and deliver long-term value
to Shareholders.
During the year, the Company made significant progress on its
expansion agenda. Following the announcement last year, land
acquisition for a greenfield brewery in Uttar Pradesh has been
completed, and orders for plant and machinery are currently being
placed. This development represents the Companys first greenfield
expansion in over a decade and reflects its strong conviction in the
long-term growth potential of the Indian beer market. The facility
is expected to commence operations in FY 2026-27.
In line with its focus on agile and capital-efficient growth, the
Company has entered a lease arrangement for the Ilios Brewery
in Andhra Pradesh, effective May 2025. This initiative is aimed at
accelerating production of Kingfisher, strengthening supply chain
responsiveness, and meeting the growing demand in the region
through a capital-light manufacturing approach. Additionally,
the Company has undertaken network upgrades across Madhya
Pradesh, Jharkhand, Odisha, and Puducherry through contract
manufacturing arrangements, further enhancing supply chain
agility and efficiency.
As part of its strategic capacity optimisation efforts, the
Company permanently closed its Mangaluru brewery in June
2025. Production has been successfully transitioned to the
expanded Nanjangud facility, reaffirming the Companys
continued commitment to Karnataka while ensuring minimal
business impact.
Beyond these initiatives, the Company continues to invest in the
modernisation of its existing facilities, strengthening of supply
chain infrastructure, and advancement of digital transformation
initiatives. These forward-looking investments are designed to
reinforce market leadership, improve operational resilience, and
align with evolving consumer preferences.
Through a balanced approach to expansion and modernisation,
your Company is well-positioned to capitalise on emerging
opportunities in Indias dynamic beer industry.
Risk Management
Risk Management and Internal Financial Controls
Your Company recognises risk management as a key enabler of
sustainable growth and long-term value creation. In an evolving
business, regulatory, and economic environment, the Company has
continued to strengthen its enterprise risk management framework
to proactively identify, assess, and manage risks that may impact
the achievement of its strategic and operational objectives.
There are no risks, which in the opinion of the Board, threaten
the existence of the Company.
Risk Governance Framework
The Risk Committee of the Board provides oversight of the
Companys risk management framework and reviews the
enterprise risk profile and mitigation effectiveness on a periodic
basis. The Committee also guides management on risk priorities
and ensures alignment of risk management practices with the
Companys strategic objectives and risk appetite.
At the management level, the Corporate Risk Team, comprising
senior leadership, drives a structured risk management process
across the organisation. This includes periodic risk identification
and assessment exercises, evaluation of mitigation plans, and
monitoring of key risk indicators.
Risk management is integrated into business planning and
performance management processes, enabling informed
decision-making and timely response to emerging risks.
Risk Management in Action
During the year, the Company continued to enhance its risk
management practices through:
-Strengthening of risk assessment processes, including
increased focus on emerging and cross-functional risks
-Deployment of improved monitoring mechanisms, including
the use of data analytics in select areas
-Focused reviews of key operational and financial risk areas
-Greater alignment of risk management processes with
business strategy and planning cycles
Internal Financial Controls
Your Company has established an adequate and effective
system of internal financial controls, commensurate with the
size and complexity of its operations, in line with the framework
prescribed by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO).
These controls are designed to provide reasonable assurance
regarding the reliability of financial reporting, safeguarding of
assets, compliance with applicable laws and regulations, and
prevention and detection of fraud and errors.
The control environment is supported by well-defined policies,
standard operating procedures, clearly defined authority matrices,
and an appropriate segregation of duties across processes.
Internal Audit and Assurance
The Internal Audit function provides independent and objective
assurance on the adequacy and effectiveness of internal
controls, risk management, and governance processes. Internal
audits are conducted based on a risk-based audit plan approved
by the Audit Committee.
Significant audit observations, along with management action
plans, are periodically reviewed by the Audit Committee, and the
status of implementation is monitored. The Statutory Auditors
also evaluate the internal financial controls over financial
reporting as part of their audit procedures.
The Company follows a"three lines of defence" model, comprising
business process owners, risk and compliance functions, and
internal audit, to ensure robust oversight and accountability.
Management Responsibility for Internal Financial Controls
The Management is responsibleforthe design, implementation,
and maintenance of adequate internal financial controls, based
on the criteria established in line with the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India.
These controls are designed to ensure orderly and efficient
conduct of business, adherence to policies, safeguarding of
assets, accuracy and completeness of accounting records,
the prevention and detection of fraud and errors and timely
preparation of reliable financial information.
Continuous Improvement
Your Companys risk management and internal control systems
are dynamic and are regularly reviewed to reflect changes in the
business and regulatory environment. The Company remains
committed to continuously enhancing its risk management
capabilities, strengthening control frameworks, and fostering a
risk-aware culture across the organization.
Based on the framework and processes outlined above, your
Companys risk management and internal control systems are
designed to provide reasonable assurance regarding the achievement
of its objectives and are regularly reviewed for effectiveness.
OTHER INFORMATION
1. General
Cash Flow Statement
A Cash Flow Statement for the year ended March 31,2026,
is appended.
Particulars of Loans, Guarantees, or Investments
Particulars of loans given, investments made, guarantees
given, and securities provided as stated under Section 186
of the Act, along with the purpose for which the loan or
guarantee, or security provided, is proposed to be utilised
by the recipient, are disclosed in the Notes to the Standalone
Financial Statements. The Company has not advanced loans
to Directors/to a Company in which the Director is interested,
to which provisions of Section 185 of the Act apply.
Depository System
The trading in the Equity Shares of the Company is under
a compulsory dematerialisation mode. The Company has
agreed with National Securities Depository Limited and
Central Depository Services (India) Limited by the provisions
of the Depositories Act, 1996, and as per the directions
issued by SEBI. As the depository system offers numerous
advantages, Members are requested to take advantage of
the same and avail the facility of dematerialisation of the
Companys Shares.
Deposits
The Company has not accepted any deposits, including
from the public, and, as such, no amount of principal or
interest was outstanding as on the Balance Sheet date.
Material changes and commitments
There have been no material changes and commitments
affecting the financial position of the Company between
the end of the financial year and the date of this Report.
There has been no change in the business of the Company.
Subsidiary
Duringthe year, the Board of Directors reviewed the affairs
of the subsidiary. In accordance with Section 129(3) of the
Act, we have prepared the consolidated financial statements
of the Company, which form part of this Integrated Annual
Report. Further, a statement containing the salient features
of the financial statements of ou r Su bsidiary and Associate
in the prescribed format AOC-1 is annexed as Annexure-C
to this Boards Report. The statement also provides details
of the performance and financial position of the subsidiary,
along with the changes that occurred during FY26.
In accordance with Section 136 of the Act, the audited
financial statements, including the Consolidated financial
statements and related information of the Company and
audited accounts of its subsidiary, are available on our
website www.unitedbreweries.com
Related Party Transactions
Details of transactions with related parties as defined
in the Act and the Rules framed thereunder, the Listing
Regulations, and IND AS 2b, have been reported in
the Notes to financial statements. The Company has
formulated a Policy on Related Party Transactions,
which is placed on the Companys website, at:
Policy on Related Party Transactions.pdf.
All transactions entered by the Company during FY26 with
related parties were in the ordinary course of business and
on an arms length basis. During theyear, the Company has
not entered into any transaction with related parties that
could be considered material by the policy of the Company.
Accordingly, the disclosure of RPTs as required under
Section 134(3)(h) of the Act in Form AOC-2 is not applicable.
Cautionary Statement
Statements in this Report, particularly those which relate to
Management Discussion and Analysis and Opportunities,
Threats, Risks, and Concerns, describing the Companys
objectives, projections, estimates, and expectations,
may constitute forward-looking statements within the
meaning of applicable laws and regulations. Actual results
might differ materially from those either expressed or implied.
2. Human Resource Management
Internal Complaints Committee
In accordance with the requirements of the Sexual
Harassment of Women at Workplace (Prevention,
Prohibition & Redressal) Act, 2013 (POSH Act) and the Rules
madethereunder.the Company has in placea policy which
mandates no tolerance against any conduct amounting
to sexual harassment at the workplace. The Company
has constituted Internal Complaints Committee(s) (ICCs)
to redress and resolve any complaints arising under the
POSH Act. Training/awareness programmes are conducted
throughout the year to create sensitivity towards ensuring
a respectable workplace.
The ICC consists of not less than b Members and has
Senior-level women employees as Presiding officers, one
external Member from NGOs orassociations committed to
the cause of women, and employees committed to the cause
and prevention of issues relating to sexual harassment.
The following details on the Complaints arising out of the
POSH are as follows:
Sr. Particulars |
No. of Complaints |
1. Number of complaints of sexual |
b |
2. Number of complaints disposed |
3 |
3. Number of complaints pending as at the end of the |
1 |
b. Number of cases pending for |
None |
Compliance under the Maternity Benefit Act, 1961
The Company remains fully compliant with the
provisions relating to the Maternity Benefit Act, 1961, read
with the relevant provisions of the Code on Social Security,
2020, to the extent notified.
Vigil Mechanism and Whistle-Blower Policy
The Company has a Vigil Mechanism and Whistle-Blower
policy under which the employees are encouraged to report
violations of applicable laws and regulations and the Code
of Business Conduct, without fear of any retaliation.
The link to report violation is SpeakUp portal
The reportable matters may be reported to the Integrity
Committee, which operates under the supervision of the
Audit Committee. Employees may also report violations
to the Chairperson of the Audit Committee. There was
no instance of denial of access to the Audit Committee.
No whistle-blowing complaints are leading to material
fraud or having an impact on the financials of the Company.
Details of the establishment of the vigil mechanism are
disclosed in the Companys Code of Business Conduct,
which is available on the Companys website and can be
accessed at Code of Business Conduct And Ethics.pdf.
Particulars of Employees
Disclosures relating to remuneration and other details as
required under Section 197(12) of the Act read with rule 5(1)
of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 (hereinafter referred
to as the "Rule") form part and are annexed as Annexure-D
of this Boards Report.
In terms of the provisions of Section 197(12) of the Act
read with rules 5(2) and 5(3) of the said Rule, a statement
showing the names and other particulars of employees
drawing remuneration in excess of the limits set out in the
said Rule forms part of this Boards Report. However, in
terms of the first provision of Section 136(1) of the Act, the
Integrated Annual Report and Accounts are being sent to
the Members and others entitled thereto, excluding the
aforesaid information. If any Member is interested in
obtaining a copy thereof, such Member may write to the
Company Secretary & Compliance Officer, stating their
Folio No./ DP ID and Client ID, whereupon a copy would
be sent.
Employees Stock Option Scheme
HEINEKEN, as the Parent Company, provided Shares to
eligible employees of UBL under the HEINEKEN Senior
Management Reward Programme.
3. Corporate Governance
The Company is committed to maintaining the highest
standards of governance and has also implemented
several best governance practices. The Corporate
Governance Report, as per the Listing Regulations, forms
part of this Integrated Annual Report. A certificate from
S. N. Ananthasubramanian & Co., Practising Company
Secretaries confirming compliance with the conditions
of Corporate Governance forms part of the Corporate
Governance Report.
Board Diversity
The Company recognizes and embraces the importance
of a diverse Board in its success. We believe that a truly
diverse Board will leverage differences in ideas, perspective,
regional and industry experience, cultural and geographical
background, age, ethnicity, race, gender, knowledge, and
skills including expertise in financial, diversity, global
business, leadership, information technology, Board service
and governance, salesand marketing, Environmental, Social
and Governance (ESG), risk management and cybersecurity
and other domains, which will ensure that the Company
retains its competitive advantage. Additional details on
Board diversity are available in the Corporate Governance
section that forms part of this Integrated Annual Report.
Code of Business Conduct and Ethics
The Board of Directors of UBL has adopted a Code of
Business Conduct in terms of the Listing Regulations,
which has been posted on the Companys website at:
Code of Business Conduct and Ethics.pdf.
Code for Prevention of Insider Trading
Your Company has adopted a comprehensive Code of
Conduct to Regulate, Monitor and Report of Trading by
Insiders and a Code of Practices and Procedures for Fair
Disclosure of Unpublished Price Sensitive Information
relating to the Company, under the provisions of the
Securities Exchange Board of India (Prohibition of Insider
Trading) Regulations, 2015.
The Board of Directors has approved and adopted theCode
of Conduct to Regulate, Monitor and Report of Trading by
Insiders and a Code of Practices and Procedures for Fair
Disclosure of Unpublished Price Sensitive Information.
Policy on Directors appointment and remuneration
The current policy is to have an appropriate mix of
executive, non-executive, and independent Directors to
maintain the independence of the Board and separate its
functions of governance and management. As of March 31,
2026, the Board had 10 (ten) Members, consisting of two
executive Directors, three Non-Executive Non-Independent
Directors, and five Non-Executive Independent Directors.
Amongst two women Non-Executive Directors, one is an
Independent Director. The details of Board and committee
composition, tenure of Directors, areas of expertise, and
other details are available in the Corporate Governance
section that forms part of this Integrated Annual Report.
The policy of the Company on Directors appointments,
KMP & Senior Management, and remuneration, including
the criteria for determining qualifications, positive
attributes, independence of a Director, and other matters,
as required under sub-section (3) of Section 178 oftheAct,
is available on the Companys website and can be accessed
at Remuneration-Policv.pdf.
We affirm that the remuneration paid to the Directors
and the criteria for making payments to Non-Executive
Directors of the Company are as per the terms laid down
in the Remuneration Policy.
Dividend Distribution Policy
As required under Regulation 43A of the Listing Regulations,
the Company has formulated a Dividend Distribution Policy.
This policy can be viewed on the Companys website and
can be accessed at Dividend Distribution Policy 2016.pdf.
Annual Return
The draft Annual Return of the Company as on March 31,
2026, is available on the Companys website and can be
accessed at Annual Return FY 2025-2026.
Secretarial Standards
The Company has followed the applicable Secretarial
Standards, with respect to Meetings of the Board of
Directors (SS-1) and General Meetings (SS-2) issued by the
Institute of Company Secretaries of India.
Directors and Key Managerial Personnel (KMP)
The Board of the Company currently comprises 10 (ten)
Directors with a balanced combination of Executive, Non-
Executive Non-Independent Directors, and Non-Executive
Independent Directors.
During the year under review, there was no change in the
composition of the Board of Directors and KMP.
Re-appointment of Director retiring by rotation
Radovan Sikorsky (DIN 09684447), Non-Executive
Non-Independent Director, retires by rotation at this AGM,
and being eligible, has offered himself for re-appointment.
A resolution for the re-appointment of Radovan Sikorsky is
proposed at this AGM.
Meetings of the Board and Committees
The meetings of the Board and Committees were
pre-scheduled, and a tentative calendar of the meetings
were finalized in consultation with the Directors and were
circulated in advance to facilitate them to plan their schedule.
In case of special and urgent business needs, approval was
taken by passing resolutions through circulation. The Board
met 6 (six) times during the FY26. Other details, including
the composition of the Board and various Committees and
meetings thereof held in FY26, are given in the Corporate
Governance section forming part of this Integrated Annual
Report. The maximum interval between Board Meeting,
Audit Committee and Risk Management Committee
meetings did not exceed the limits as prescribed under the
Act read with the Listing Regulations.
Board Evaluation and Familiarization Programme
The details of the familiarization programme, annual Board
evaluation for Directors, policy on Directors appointment
and remuneration, including criteria for determining
qualifications, positive attributes, independence of
Directors, and remuneration for Directors, form part
of the Corporate Governance section of this Integrated
Annual Report.
Declaration by Independent Director
Duringtheyear, 1 (one) meeting of the Independent Director
was held on May 30, 2025. The Company has received the
necessary declarations from each independent Director
under Section 149(7) of the Act, that (i) he/she meets the
criteria of independence laid down in Section 149(6) of
the Act, (ii) Code for Independent Directors as laid down
under Schedule IV of the Act and Regulation 16(1)(b) of
the Listing Regulations. The independent Directors have
further confirmed that they have registered their names on
the online databank maintained by the Indian Institute of
Corporate Affairs.
4. Audit and Nomination & Remuneration Committee
Audit Committee
The Audit Committee of the Board of Directors is constituted
to act by the terms of reference and perform roles, as
prescribed under the Act and Listing Regulations. The
composition of the Audit Committee, its terms of reference,
roles, and details of meetings convened and held during the
year under review are given in the Corporate Governance
section that forms part of this Integrated Annual Report.
During the year under review, all the recommendations
of the Audit Committee were accepted and approved by
the Board.
Nomination and Remuneration Committee (NRC)
The NRC is constituted by the terms of reference and
performs roles; remuneration policy as prescribed under
the Act and Listing Regulations. The composition of the
NRC, its terms of reference, roles, and details of meetings
convened and held during the year under review form part
of the Corporate Governance section of this Integrated
Annual Report.
The salient features of the remuneration policy are also
provided in the Corporate Governance section forming part
of this Integrated Annual Report.
During the year under review, all the recommendations
of the Nomination and Remuneration Committee were
accepted and approved by the Board.
5. Auditors and Audit Reports
Statutory Auditors and Audit Fees
Based on the recommendation of the Audit Committee
and approval of the Board of Directors, the Members of
the Company on September 18, 2025 vide its Postal Ballot
approved/ ratified the appointment of Messrs. B S R & Co.
LLP, Chartered Accountants (Firm Registration Number
101248W/W-100022) (B S R) as the statutory auditors of
the Company to hold office with effect from August 08,
2025 till the conclusion of the 27th Annual General Meeting
(AGM1) of the Company to beheld in the year 2026 to fill the
casual vacancy caused by the resignation of Messrs. Deloitte
Haskins & Sells, Chartered Accountants (Firm Registration
Number 008072S) under Section 139(8) oftheAct.
Further, based on the recommendation of the Audit
Committee, the Board of Directors at its meeting held on
May 05, 2026 approved re-appointment of B S R as the
statutory auditors of the Company to hold office for a
term of 5 (five) consecutive years from the conclusion of
27th AGM of the Company to be held in the year 2026 till
the conclusion of 32nd AGM of the Company to be held in
the year 2031.
Furthermore, B S R has provided confirmation that a) the
firm is eligible for re-appointment and is not dis-qualified for
the appointment under the Act, the Chartered Accountants
Act, 1949 and the rules made thereunder, b) the proposed
appointment shall be as per the term and within the limits
laid down under the Act, and c) the auditors specifies the
criteria provided in Section 141 of the Act.
The Auditors Report does not contain any qualification,
reservation, adverse remark or disclaimer. The Notes to the
financial statements referred to in the Auditors Report are
self-explanatory and do not call for any further comments.
During the financial year, audit fees paid to Messrs. Deloitte
Haskins & Sells, Statutory Auditors, for the period from
April 01,2025, to August 07, 2025, amounted to Rs. 110 Lakhs.
For the subsequent period from August 08, 2025, to March
31, 2026, the Company incurredRs. 331 Lakhs on account of
B S R. This amount includes quarterly limited reviews, group
reporting, statutory audit, and tax audit. The total audit
fees for the FY 2025-26, including goods and services tax
and other expenses, amounted to Rs. 441 Lakhs for the year
under review.
Secretarial Auditors and Audit Report
At the 26th AGM, the Members had appointed BMP & Co.
LLP, Practicing Company Secretary, for a period of 5 (five)
years up to FY 2029-30 to conduct Secretarial Audit of
the Company.
The Secretarial Audit Report for the financial year ended
March 31, 2026, forms part of the Corporate Governance
section of this Integrated Annual Report. The Secretarial
Audit Report does not contain any qualification, reservation,
adverse remark, or disclaimer.
Annual Secretarial Compliance Report
The Company has undertaken an examination of all
applicable compliances as per Listing Regulations and
Circulars / Guidelines issued thereunder, for the FY26.
The Annual Secretarial Compliance Report, as issued by
BMP & Co., LLP, Practicing Company Secretary, should be
submitted to the Stock Exchanges within 60 (sixty) days
of the end of FY26. This Report does not contain any
qualifications, reservations, adverse remarks or disclaimers
for FY26.
Cost Records and Cost Audit
Maintenance of cost records and the requirement of cost
audit as prescribed under the provisions of Section 148(1)
of the Act are not applicable to the business activities
carried out by the Company for the FY26.
Reporting of fraud by Auditors
During the year under review, neither the Statutory
Auditors nor the Secretarial Auditors have reported to the
Audit Committee, under Section 143(12) of the Act, any
instances of fraud committed against the Company by its
officers or employees, the details of which would need to
be mentioned in this Report.
6. Conservation of energy, research & development,
technology absorption, foreign exchange earnings
and outgo
Conservation of Energy
The Company is taking continuous steps to conserve
energy. The particulars, as prescribed under sub-section
(3)(m) of Section 134 of the Act, read with the Companies
(Accounts) Rules, 2014, are annexed as Annexure-E to this
Boards Report.
Foreign Exchange Earnings and Outgo
During FY26, total foreign exchange earnings of the
Company stood at Rs. 29,271 Lakhs (Previous Year:
Rs. 27,752 Lakhs), and foreign exchange outgo stood at
Rs. 50,659 Lakhs (Previous Year: Rs. 72,077 Lakhs).
7. Material Orders
Significant and Material Orders
No significant material orders passed, or stringent actions
taken by the regulators, courts, or tribunals, impact the
going concern status and the Companys operations in the
future. However, we bring to your attention the following
developments/ordersforthe sake of transparency.
i) Competition Commission of India (CCI):
On September 24,2021, the CCI passed an order under
Section 27 of the Competition Act, 2002 ("Act") in
Suo Motu Case No. 06 of 2017 and imposed penalties
on three beer companies, including the Company,
for alleged contravention of Section 3 of the Act
("CCI Order"). The penalty imposed on the Company
is Rs. 751.83 crores ("the Penalty"). The Company and
other appellants filed appeals challenging the CCI
Order before the National Company Law Appellate
Tribunal ("NCLAT"). The NCLAT stayed the CCI
Order, including recovery of the penalty amount
imposed by the CCI, subject to a deposit of 10% of
the penalty by the Company. The NCLAT dismissed
the appeals vide order dated December 23, 2022
("NCLAT Order"). The Company and other appellants
have filed appeals against the NCLAT Order in the
Supreme Court of India ("Supreme Court"). The
Supreme Court admitted the appeals vide order dated
February 17, 2023 ("SC Order"), stayed the NCLAT
Order and consequently, the CCI Order, subject to a
deposit of an additional 10% of the penalty, over and
above the amount already deposited with NCLAT.
The company has already deposited 20% of the
penalty by way of fixed deposits in favour of the
Registrar, NCLAT, in pursuance of the NCLAT Order
and the SC Order. The matter is currently sub-judice
before the Supreme Court.
ii) Bihar Industrial Area Development Authority (BIADA):
BIADA had allotted 42 Acres of land ("the Land") to
the Company on June 3, 2011, in Kopakalan Industrial
Area, Naubatpur, District Patna, on a lease basis for
establishing a brewery. The Company established
a brewery over the Land, which was closed on
April 1, 2017, upon imposition of prohibition by the
Bihar State Government. The Company restarted the
unit over the Land and commenced production of
non-alcoholic beverages in the unit in October 2018
after obtaining approvals from all statutory authorities.
On June 25, 2022, BIADA issued a show cause notice
forthe cancellation of allotment/ lease of the land due
to non-operation of the unit. The Company replied that
the production was temporarily stopped since it had
sufficient stocks to meet the demand for its products
and sought an extension to restart production. BIADA
cancelled the allotment of the land vide order dated
December 16, 2022, against which the Company
filed a writ before the High Court of Patna. The High
Court vide order dated January 25, 2023, directed
BIADA to maintain the status quo and directed the
Company to file an undertaking that it will commence
commercial production in the unit. The Company
has filed an undertaking in the High Court that it will
start commercial production in the unit with BIADA,
recalling the order of cancellation. Subsequently, on
February 8, 2023, the High Court directed BIADA to
take a policy decision to deal with the situation arising
out of the action of BIADA in the present petition and
identical matters. On August 10, 2023, BIADA notified
two policies for availing options by the allottees to
either (i) surrender the land, or (ii) sell/transfer the
land; and on October 5, 2023, BIADA notified another
policy also to continue manufacturing activities over
the allotted land.
On October 30, 2023, the Company filed an
application to amend the writ to include additional
matters related to setting aside the policy related to
the continuance of the manufacturing activities over
the allotted land, which has stringent conditions or
alternatively direct BIADA to extend the period to six
months to avail the option to sell/ transfer the land.
The matter is pending with the High Court.
During the pendency of the writ, the Management
sought the approval of the Board of Directors of the
Company to apply under the BIADA Amnesty Policy
2025, for resumption of production of malt-based
Non-Alcoholic Beverages (NAB) and/or additional
NAB products at the said Unit within a period of
24 months.
The Board granted an in-principle approval to the
Management on December 24, 2025, and based on
the aforesaid approval of the Board, the Company
filed its application on December 30, 2025 and was
accorded in principle approval by BIADA on January
13, 2026. The Company has taken steps to complete
the conditions indicated in the in-principle approval
and now awaits the final approval of BIADA to restart
the Unit.
8. Other Disclosures
Your Director states that no disclosure or reporting is
required in respect of the following matters, as there
were no transactions on these matters during the year
under review:
i. The Company has not issued any shares with
differential voting rights/sweat equity shares.
ii. There was no revision in the Financial Statement.
iii. There has been no change in the business of the
Company as on the date of this Report.
iv. Neither the Managing Director & Chief Executive
Officer nor the Director & Chief Financial Officer of
the Company receives any salary or commission from
the subsidiary Company.
v. No application has been made under the Insolvency
and Bankruptcy Code; hence, the requirement to
disclose the details of the application made or
any proceeding pending under the Insolvency and
Bankruptcy Code, 2016 (31 of 2016) during the year,
along with their status as at the end of the financial
year, is not applicable.
vi. There was no instance of one-time settlement with
any Bank or Financial Institution.
vii. The requirement to disclose the details of the
difference between the amount of the valuation done
at the time of one-time settlement and the valuation
done while taking a loan from the Banks or Financial
Institutions, along with the reasons thereof, is not
applicable; and
viii. During the year, there was no change in the status of
subsidiary, associate, and joint venture companies as
may be applicable.
9. Directors Responsibility Statement
The financial statements are prepared in accordance
with the Indian Accounting Standards (Ind AS) under
the historical cost convention on an accrual basis, except
for certain financial instruments, which are measured
at fair values, the provisions of the Act, and guidelines
issued by SEBI. The Ind AS are prescribed under Section
133 of the Act, read with Rule 3 of the Companies
(Indian Accounting Standards) Rules, 2015, and relevant
amendment rules issued thereafter. Accounting policies
have been consistently applied except where a newly issued
accounting standard is initially adopted, or a revision to
an existing accounting standard requires a change in the
accounting policy hitherto used.
Your Directors state that:
a) in the preparation of the annual accounts for the
financial year ended March 31, 2026, the applicable
accounting standards, read with requirements set out
under Schedule III to the Act, have been followed, and
there are no material departures from the same.
b) the Directors had selected such accounting policies
and applied them consistently, and made judgments
and estimates that are reasonable and prudent so
as to give a true and fair view of the state of affairs
of the Company at the end of March 31, 2026, and
of the profit of the Company for the year ended on
that date;
c) the Directors had taken proper and sufficient care
for the maintenance of adequate accounting
records in accordance with the provisions of the
Act for safeguarding the assets of the Company
and for preventing and detecting fraud and
other irregularities.
d) the Directors had prepared the annual accounts on a
going concern basis.
e) the Directors had laid down internal financial controls
to be followed by the Company, and that such internal
financial controls are adequate and were operating
effectively; and
f) the Directors had devised proper systems to ensure
compliance with the provisions of all applicable
laws, and such systems were adequate and
operating effectively.
ACKNOWLEDGEMENT AND APPRECIATION
We thank our clients, customers, vendors, investors, Members
suppliers, bankers, business partners and associates, financial
institutions, employee volunteers, central and state governments,
and other government agencies for their continued support
and encouragement of the Company during the year and look
forward to their continued support in the future. We place
on record our appreciation for the contribution made by our
employees at all levels. Our consistent growth was made possible
by their hard work, solidarity, cooperation, and support.
IIFL Customer Care Number
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IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132 (Member ID - NSE: 10975 BSE: 179 MCX: 55995 NCDEX: 01249), DP SEBI Reg. No. IN-DP-185-2016, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, Merchant Banker SEBI Regn. No. INM000010940, RA SEBI Regn. No: INH000000248, BSE Enlistment Number (RA): 5016, AMFI-Registered Mutual Fund Distributor & SIF Distributor
ARN NO : 47791 (Date of initial registration – 17/02/2007; Current validity of ARN – 08/02/2027), PFRDA Reg. No. PoP 20092018, IRDAI Corporate Agent (Composite) : CA1099
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
