United Breweries has secured a favourable order from the Hon'ble High Court of Judicature at Bombay, Bench at Aurangabad, which dismissed an appeal by the Revenue regarding a service tax demand.

The court's decision, received on September 4, 2026, upholds a prior ruling by the Central Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai. The matter concerned Millennium Beer Industries Limited (MBIL), which was amalgamated with United Breweries Limited with effect from April 1, 2010.

Litigation Details

The Revenue had challenged the CESTAT order in the High Court. The dispute involved a service tax demand of ₹21.92 crore for the period between September 2009 and November 2011, along with applicable interest and penalties.

The Commissioner of Central Excise Aurangabad (now Commissioner of Central GST and Service Tax, Aurangabad) contended that MBIL's contract brewing activities during the relevant period constituted "Business Auxiliary Service" and were liable for service tax.

Court Ruling

The High Court dismissed the Revenue's appeal based on two primary grounds:

• The service tax demand was barred by limitation.
• The principle of consistency applied, as the Revenue had accepted a materially identical issue in another comparable case.

As a result of the order, the contingent liability related to this specific demand is reduced from ₹21.92 crore to Nil. The company confirmed there are no claims or compensation payments associated with this proceeding.

This disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Para B(8) of Part A of Schedule III and SEBI Master Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

United Breweries has outlined a strategic focus on expanding its premium beer portfolio, aiming to increase the revenue share of this segment from the current 10-11% to 20%. The company also set a target for double-digit growth in net sales.

Strategic Focus

The brewer’s plan centers on shifting its product mix toward higher-margin offerings. By targeting a significant uplift in the premium segment's contribution, United Breweries seeks to drive top-line expansion while potentially improving overall profitability margins.

The specific goal of raising the premium beer revenue share to 20% indicates a deliberate move away from volume-driven growth in lower-tier categories toward value-led growth. This strategy aligns with broader industry trends where consumers are increasingly trading up to premium brands.

What the Numbers Show

The proposed shift from a 10-11% revenue share to 20% represents a near doubling of the premium segment's contribution to total sales. This suggests that future revenue growth will be heavily dependent on successful penetration in the premium category rather than broad-based volume increases across all segments.