United Breweries Limited has announced a significant development in its ongoing tax litigation with the Income Tax Department, with the company receiving a fresh assessment order that substantially reduces its tax liability. The brewing company disclosed this outcome under Regulation 30 of SEBI Listing Regulations on February 13, 2026.

Major Reduction in Tax Demand

The National Faceless Assessment Centre (NFAC) has issued a revised assessment order that brings considerable relief to United Breweries Limited. The tax demand has been dramatically reduced from the original amount, marking a positive development in the company's tax proceedings.

Background of the Tax Dispute

The litigation stems from the UBL Gratuity Trust's return for Assessment Year 2022-23, which was selected for scrutiny assessment by the NFAC. The tax authority had initially alleged a substantial increase in capital contribution, leading to comprehensive examination of the trust's financial affairs.

In the original assessment, the NFAC had:

• Disregarded all explanations provided by the Trust
• Disallowed the entire capital contribution and exemptions
• Assessed the total income of the Trust at ₹108.74 crore
• Issued a demand notice for ₹102.44 crore on March 20, 2024

Court Intervention and Fresh Assessment

Aggrieved by the original assessment order, the UBL Gratuity Trust approached the Karnataka High Court through a writ petition. The High Court examined the matter and remanded it back to the NFAC for fresh consideration, directing the tax authority to relook into all submissions made by the Trust.

Following the High Court's directions, the NFAC conducted a comprehensive review of the case. In the fresh assessment order received on February 12, 2026, the tax authority granted significant relief regarding the disallowance of capital contribution. However, the disallowance of exemption worth ₹6.25 crore was sustained.

Current Status and Next Steps

Despite the substantial reduction in tax demand, United Breweries Limited maintains that it has strong arguments to defend against the remaining liability. The company has indicated that the Trust will file an appeal before the Commissioner of Income Tax (Appeals) to contest the sustained disallowance of ₹6.25 crore exemption.

This development represents a significant positive outcome for United Breweries Limited, with the company achieving a substantial reduction in its contingent tax liability while maintaining its position to challenge the remaining demand through appropriate legal channels.

United Breweries Limited announced its unaudited standalone and consolidated financial results for the quarter ended December 31, 2025, demonstrating resilient performance amid challenging market conditions. The Board of Directors approved these results at their meeting held on February 10, 2026, following review by the Audit Committee and statutory auditors.

Earnings Call and Investor Presentation

The company has scheduled an investor presentation and earnings call for February 11, 2026, following the announcement of its Q3FY26 financial results. This initiative, conducted under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, aims to provide stakeholders with comprehensive insights into the company's quarterly performance.

Financial Performance Overview

The company reported strong financial metrics for the third quarter, with significant improvements in profitability and margins. The results reflect the company's strategic focus on premiumisation and operational excellence initiatives.

Quarterly Highlights and Market Performance

The investor presentation revealed key performance indicators for Q3 FY26, showing mixed results amid market challenges. Volume declined by 1.3% during the quarter, attributed to colder-than-usual winter conditions affecting the beer category. However, the company achieved a net sales growth of 4%, driven by positive price mix improvements.

Year-to-Date Performance and Strategic Focus

For the nine months ended December 31, 2025, United Breweries Limited reported revenue from operations of Rs. 13,05,007 lakhs compared to Rs. 14,97,527 lakhs in the corresponding period of the previous year. The company achieved volume growth of 2.6% year-to-date, with premium volumes growing by 23%, demonstrating successful premiumisation strategy.

Regulatory Compliance and Transparency

Company Secretary and Compliance Officer Nikhil Malpani confirmed that the investor presentation materials have been made available on the company's website and submitted to both BSE Limited and National Stock Exchange of India Limited in compliance with regulatory requirements. This transparency initiative reinforces the company's commitment to maintaining open communication with investors and stakeholders.