If you've ever sipped a Budweiser at a house party, grabbed a Corona at a club, or spotted a Hoegaarden on a premium restaurant shelf, you’ve already met the king of global beer — AB InBev.
Globally, AB InBev is a behemoth. It owns 500+ brands, operates across continents, and calls itself the world’s largest beer maker. But in India, the story is far more complicated. Despite being the second-largest player in India’s beer market, revenue scale isn’t translating into profits — yet.
Let’s break it down.
AB InBev India houses household names:
Core segment: Haywards, Knock Out, Royal Challenge (~73% of FY20 revenue historically)
Premium: Budweiser (core, Magnum, Super Premium), Stella Artois, Corona, Hoegaarden (~20% historically)
Imports/craft niche: Hoegaarden 0.0, Budweiser 0.0, Beck’s Ice
Their India strategy? Push premium. Because premium beer = premium margins.
| Particulars | FY23 | FY24 | FY25 |
| Revenue | ₹6,177 Cr | ₹7,302 Cr | ₹7,890 Cr |
| EBITDA | -₹187 Cr | -₹286 Cr | -₹24 Cr |
| PAT | -₹438 Cr | -₹591 Cr | -₹356 Cr |
Revenue is clearly rising — ₹1,700 Cr added in two years.
But profits? Still negative.
The good news: Losses and negative EBITDA are shrinking sharply in FY25. The operating performance is improving, helped by:
Better product mix (more premium, less mass)
Higher gross margins (up to 77.35% in FY25)
Brand positioning and pricing power
The challenge: Overheads, regulatory costs, state taxes, logistics, and capital-heavy manufacturing continue to drag profitability.
| Particulars (cr) | FY25 | FY24 | FY23 |
| FIxed Assets | 1518 | 1434 | 1094 |
| Inventories | 867 | 799 | 1046 |
| Trade Receiveables | 643 | 617 | 614 |
| Total Assets | 3693 | 3378 | 3388 |
| Share Capital | 1016 | 928 | 928 |
| ReseRve and Surplus | -775 | -779 | -190 |
| Borrowings | 1665 | 1589 | 926 |
Debt continues climbing as the company scales, but FY25 shows signs of stabilization.
| Particulars (cr) | FY25 | FY24 | FY23 |
| CFO | -66 | -311 | -594 |
| CFI | -237 | -210 | -31 |
| CFF | 280 | 474 | 761 |
| Net Cash Generated | -22 | -48 | 136 |
| Cash at end | 117 | 139 | 187 |
Operating cash flow has improved dramatically, shifting from deep negative territory toward breakeven.
This suggests one thing: the turnaround is building momentum.
Investment activity increased again in FY25 — likely bottling expansion, automation, and premium production capability
| Particulars (cr) | FY25 | FY24 |
| Revenue from operations | 7890 | 7302 |
| a) Beer | 3443 | 2990 |
| b) Beverages other than beer | 14 | 85 |
| c) Excise duty collected from customers | 4383 | 4179 |
Three words: Regulation. Distribution. Excise.
Beer in India is taxed almost like a sin product, and excise contributes a massive chunk of revenue (₹4,383 Cr in FY25 alone). Combine that with state-by-state policies, price control, and expensive logistics, and margins evaporate faster than foam on a hot pint.
Despite the challenges, FY25 indicates a shift:
Gross margins hit an all-time high
EBITDA loss nearly wiped out
Cash burn sharply reduced
Premium demand continues rising, especially among millennials
India is moving from “beer = cheap drink” to “beer = lifestyle choice.”
That shift plays directly into AB InBev’s strongest territory.
AB InBev India’s story isn’t about short‑term profit—it’s about category creation and premium market shaping.
With:
Gross margins climbing
Operating losses almost eliminated
Investments continuing in premium expansion
The company seems positioning for a long‑term payoff.
AB InBev India isn’t profitable yet — but it's closer than ever.
This is a classic scale-first-profit-later story.
If current trends continue:
Premium beers scale further
Operating leverage kicks in
Debt stabilizes
Distribution efficiencies improve
Then AB InBev could finally turn its Indian business from a volume game to a margin engine.
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