United Breweries Limited has received significant relief in its tax litigation case with Bihar state tax authorities, with the penalty amount substantially reduced following a successful appeal.

Tax Litigation Outcome

The company received a favourable order from the Assistant Commissioner of State Tax, Pataliputra Circle, Bihar on April 24, 2026. The GST Commissioner (Appeals) granted substantial relief to the company based on legal submissions made during the appeal process.

Background of the Case

The litigation originated from a demand order issued on February 27, 2025, under Section 73 of the BGST Act, 2017. The original order confirmed a demand for tax along with a penalty of ₹29,00,048. United Breweries subsequently filed an appeal before the Commissioner (Appeals) challenging this assessment.

Company's Response and Next Steps

Following the Commissioner's decision, United Breweries has indicated its intention to pursue further legal remedies. The company stated it will file an appeal before the GST Appellate Tribunal (GSTAT) against the residual demand that remains after the reduction.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This follows the company's earlier disclosure filed on March 01, 2025, regarding the original tax litigation matter.

Financial Impact

The current expected financial implication stands at ₹1,85,878 as penalty, representing a significant reduction from the original assessment. The company has provided detailed information about the litigation status as required under SEBI regulations for listed entities.

United Breweries Limited has reported strong operational performance for Q4FY26, with growth across multiple segments as disclosed through a media release by its promoter group Heineken N.V. on April 23, 2026. The disclosure was made as part of Heineken N.V.'s Q4-January-March 2026 trading update, highlighting the company's India operations performance.

Financial Performance Overview

The company demonstrated solid financial metrics during the quarter, with revenue and volume showing positive momentum across different segments.

Volume Growth and Market Position

United Breweries Limited achieved mid-single-digit growth in total volume during Q4FY26. The total volume calculation includes contract brewing volume, which is now classified as licensed volume under the company's updated reporting methodology. This growth reflects the company's expanding market presence and operational efficiency.

Premium Segment Excellence

The premium segment emerged as a standout performer, delivering strong growth in the mid-teens range. Kingfisher Ultra led this exceptional performance, demonstrating the brand's strong market appeal and the company's successful premium positioning strategy. This segment's robust growth indicates increasing consumer preference for premium beer products.

Product Innovation and Market Strategy

During the quarter, United Breweries Limited launched Kingfisher Smooth, a new product variant featuring lower bitterness. This strategic launch aims to:

• Reinforce Kingfisher's leadership position in the mainstream segment
• Cater to evolving consumer taste preferences
• Expand market reach through product diversification
• Strengthen brand portfolio across different consumer segments

Regulatory Disclosure

The performance update was disclosed under Regulation 30 requirements, with Company Secretary & Compliance Officer Nikhil Malpani making the formal submission to BSE Limited and National Stock Exchange of India Limited on April 23, 2026. The disclosure ensures transparency regarding material information published by the promoter group about the company's operations.