Dutch brewing giant Heineken NV reported low-single-digit revenue growth in India during the first quarter of 2026, supported by strong momentum in its premium beer portfolio even as the company flagged rising global inflationary pressures and higher energy costs.
The brewer, which owns over 61.5 per cent stake in United Breweries Ltd (UBL), said India remained a steady growth market with total volume rising in the mid-single digits during the March quarter.
"In India, net revenue grew by a low-single-digit. Total volume, which includes contract brewing volume now classified as licensed volume, grew by a mid-single-digit," Heineken said in its earnings statement.
India’s premium beer segment delivered robust performance during the quarter, with growth in the mid-teens, led by Kingfisher Ultra. The company is also expanding its premium portfolio while strengthening its mainstream offerings. UBL recently launched Kingfisher Smooth, a lower-bitterness beer aimed at reinforcing Kingfisher’s leadership in the mass market segment.
Heineken said UBL has reclassified its contract brewing volume from “consolidated” to “licensed” under the group’s new accounting and volume classification policy for India. The change reduced total volume growth in Heineken’s Asia Pacific region by around 180 basis points.
"Total volume increased by 10.1 per cent (in APAC) , with consolidated volume up 3.7 per cent as strong growth in Vietnam more than offset continued market challenges in Cambodia and the reclassification of contract brewer volume in India (this negatively impacted APAC consolidated volume growth by circa 180 bps)," it said.
Globally, Heineken posted first-quarter net revenue of 6.7 billion euros, up 2.8 per cent, beating analyst forecasts of 2.3 per cent growth. Organic beer volumes also rose 1.2 per cent, ahead of expectations for flat growth.
However, the brewer cautioned that rising fuel and energy costs, along with broader inflationary pressures linked to geopolitical tensions, could weigh on consumer demand in coming months.
"Global trade has become more complex and volatile, with impacts on energy availability and costs in certain markets. This leads to inflationary pressures, which might affect consumer sentiment in the medium-term," outgoing CEO Dolf van den Brink said in a statement.
Currency fluctuations also weighed on earnings, with foreign exchange translation reducing net revenue by 182 million euros, mainly due to the strengthening euro and weaker currencies including the Indian rupee, Vietnamese dong and Ethiopian birr.
Despite macroeconomic headwinds, Heineken maintained its full-year guidance of 2 per cent to 6 per cent organic operating profit growth.
In India, UBL remains one of the country’s leading brewers with brands such as Kingfisher, Kalyani Black Label, Bullet, Maharaja Premium Indian Pilsner, Taj Mahal Premium, alongside Heineken, Amstel Bier and Sol.