Shares of United Breweries, the name behind Kingfisher beer, took a sharp 7% dive on Wednesday after the company made a bold move—halting beer supplies to the Telangana Beverages Corporation Ltd (TGBCL). This public-sector giant controls all liquor distribution in Telangana, making it a key player in the state’s alcohol market. United Breweries pointed to financial woes as the tipping point. According to the company, TGBCL hasn’t updated the basic price of beer since 2019-20, leading to significant losses. Add to that a mountain of overdue payments for past supplies, and the company decided enough was enough. The financial mismatch made continued operations “unviable,” as stated in their announcement. The fallout was swift. The stock hit an intraday low of ₹1,920, marking a 7.4% drop. In Q2 FY25, it posted a 23% year-over-year jump in net profit, reaching ₹132 crore. EBITDA climbed 21% to ₹237 crore, and net sales rose 12% to ₹2,115 crore. The decision to cut off beer supplies in Telangana could hit United Breweries’ market share in the state, but the company’s overall financial strength offers some reassurance. The real test will be whether they can resolve the pricing and payment standoff with TGBCL without further dents to their bottom line.