NEW DELHI, May 6 -- Demand for beer in India is holding up, but for United Breweries Ltd, rising costs and delayed pricing are squeezing margins.

The Heineken NV-controlled maker of Kingfisher beer reported a weaker-than-expected performance for fiscal year 2026 (FY26), with revenue and profit declining even as volumes showed some resilience. A fresh wave of input cost inflation, particularly in packaging, alongside supply disruptions linked to the West Asia conflict, is driving the pressure in India's tightly regulated beer market.

Revenue from operations fell 10% to Rs.1,746.3 crore in FY26 from Rs.1,940.8 crore a year earlier, according to exchange filings, while profit declined 6.6% to Rs.413.4 crore.

For the quarter ended 31 March...