India's United Breweries gains; J.P.Morgan sees volume recovery, margin expansion

Shares of United Breweries UBBW.NS rise as much as 2.79% to 1847.9 rupees

J.P.Morgan reiterates "overweight" rating; cites sustained premiumisation, category development, distribution enhancement and supply chain initiatives to support earnings in a challenging period

Says, above-average monsoon rains doused sales of summer products such as beer this quarter, but volumes should recover in the second half of fiscal 2026

Price hikes in several states, better bottle return and recycled glass use, and stable barley costs bode well for margin expansion - brokerage

Adds, UBBW shares corrected 10% over the past two months, offering a good entry opportunity

The average rating of 18 analysts tracking UBBW is "hold", median PT is 2,018.50 rupees - data compiled by LSEG

UBBW shares are down 12% in 2025 so far, lagging the 0.5% drop in FMCG index .NIFTYFMCG, exchange data shows