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During the quarter, profit before tax climbed 18.96% to Rs 1,163.19 crore from Rs 977.81 crore recorded in the same quarter last year. Gross margins improved by 62 bps to 55.2% in Q1 CY2026, supported by early stocking of key raw materials despite the inflationary raw material environment.
For Q1 CY26, EBITDA grew 21% to Rs 1,528.93 crore from Rs 1,263.96 crore posted in the corresponding quarter last year. EBITDA margin improved by 55 bps to 23.3% in Q1 CY2026. In India, EBITDA margin rose 112 bps, driven by operational efficiencies, robust volume growth, and improved gross margins.
Consolidated sales volume rose 16.3% to 363.4 million cases in Q1 CY26 from 312.4 million cases in Q1 CY25, driven by strong volume growth of 14.4% in India and 21.4% in international territories.
Net realization per case improved by 1.6% at the consolidated level, supported by better realizations in international markets, primarily due to favourable currency movements. However, net realization per case in India declined by 1.5%, mainly due to volume growth initiatives such as pack upsizing and selective price-point launches in targeted markets to onboard new consumers.
Ravi Jaipuria, chairman of Varun Beverages, said, “We are pleased to report a strong performance in the first quarter of CY2026, supported by healthy demand, disciplined execution, and continued progress across our markets. Consolidated sales volumes grew by 16.3% in Q1 CY2026, driven by volume growth of 14.4% in India and 21.4% in international territories. Revenue increased by 18.1% YoY to Rs. 65,742 million, and EBITDA improved by 21.0% YoY to Rs. 15,289 million.
In India, demand remained encouraging during the quarter, supported by our wide distribution reach, strengthened execution, and continued investments in manufacturing capacity and chilling infrastructure. We undertook targeted initiatives to drive volumes and strengthen our domestic portfolio, including pack upsizing, selective price-point launches in identified markets to onboard new consumers, and new launches in the energy and juice based drink segments. The facilities commissioned over the last year have stabilized well and are expected to support growth and enhance operating efficiencies going forward.
Our international business continued to make steady progress during the quarter. We consummated the acquisition of Twizza in South Africa through BevCo, strengthening our manufacturing footprint and route-tomarket capabilities in Africa’s largest soft drinks market. The acquisition is expected to generate meaningful operational and commercial synergies over time. We have also entered into an agreement to acquire Crickley Dairy through BevCo, which will further strengthen our presence in South Africa, subject to regulatory and other approvals. Across Africa, we continue to build scale in snacks and deepen our presence in high-potential markets, in line with our strategy of broadening the portfolio and strengthening consumer relevance.
In accordance with our dividend policy, the Board of Directors has approved an interim dividend of 25% of face value, i.e., Rs. 0.50 per share, resulting in a total cash outflow of approximately Rs. 1,691 million. Looking ahead, we remain confident in the long-term opportunity across our markets, supported by favorable demographics, rising incomes, growing urbanization, and increasing beverage consumption. With adequate capacities, a diversified portfolio, and a strong distribution network, we are well-positioned to deliver sustained growth and create long-term value for all our stakeholders.”
The company has completed the acquisition of a 100% stake in Twizza (Pty) Limited, South Africa, through its subsidiary, The Beverages Company Proprietary Limited (BevCo), at an enterprise value of ZAR 2,053 million. Consequently, Twizza has become a step-down subsidiary with effect from 18 March 2026. The acquisition, supported by Twizza’s established manufacturing footprint and strong distribution network, is expected to enhance the company’s presence in Africa’s largest soft drinks market and generate operational and commercial synergies, aligning with its long-term growth strategy in the region.
Separately, the company had entered into a share purchase agreement on 17 March 2025, through BevCo, to acquire a 100% stake in Crickley Dairy Proprietary Limited, South Africa, at an enterprise value of approximately ZAR 238 million (including working capital), subject to regulatory and other approvals.
Meanwhile, the board approved an interim dividend of Rs 0.50 per share (25% of face value), with a total cash outflow of approximately Rs 1,691 million. The final dividend of Rs 0.50 per share for FY25 was approved by shareholders at the AGM held on 1 April 2026 and has been duly paid.
Varun Beverages is a key player in the beverage industry and one of the largest franchisees of PepsiCo in the world (outside the USA). As of this date, VBL has been granted franchises for various PepsiCo products across 26 states and 6 union territories in India. VBL has also been granted the franchise for various PepsiCo products for the territories of Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe, South Africa, Lesotho, Eswatini & DRC and distribution rights for Namibia, Botswana, Mozambique and Madagascar.
Varun Beverages Ltd gained for a third straight session today. The stock is quoting at Rs 471.35, up 2.38% on the day as on 12:49 IST on the NSE. The benchmark NIFTY is up around 0.31% on the day, quoting at 24272.2. The Sensex is at 78203, up 0.27%. Varun Beverages Ltd has risen around 13.55% in last one month.
Meanwhile, Nifty FMCG index of which Varun Beverages Ltd is a constituent, has risen around 3.21% in last one month and is currently quoting at 48377.9, up 2.57% on the day. The volume in the stock stood at 69.75 lakh shares today, compared to the daily average of 66.47 lakh shares in last one month.
The benchmark April futures contract for the stock is quoting at Rs 469.2, up 1.51% on the day. Varun Beverages Ltd is down 13.8% in last one year as compared to a 0.61% spurt in NIFTY and a 11.6% spurt in the Nifty FMCG index.
The PE of the stock is 60.62 based on TTM earnings ending December 25.
Varun Beverages Ltd rose for a third straight session today. The stock is quoting at Rs 432, up 2.15% on the day as on 12:49 IST on the NSE. The benchmark NIFTY is up around 0.99% on the day, quoting at 24011.35. The Sensex is at 77413.31, up 1.02%. Varun Beverages Ltd has added around 0.17% in last one month.
Meanwhile, Nifty FMCG index of which Varun Beverages Ltd is a constituent, has added around 1.96% in last one month and is currently quoting at 47640.7, up 0.96% on the day. The volume in the stock stood at 30.68 lakh shares today, compared to the daily average of 70.4 lakh shares in last one month.
The benchmark April futures contract for the stock is quoting at Rs 435.2, up 2.39% on the day. Varun Beverages Ltd is down 20.84% in last one year as compared to a 5.18% gain in NIFTY and a 13.71% gain in the Nifty FMCG index.
The PE of the stock is 55.64 based on TTM earnings ending December 25.
Varun Beverages Ltd dropped for a fifth straight session today. The stock is quoting at Rs 439.55, down 1.2% on the day as on 13:19 IST on the NSE. The benchmark NIFTY is down around 0.49% on the day, quoting at 25650.55. The Sensex is at 83387.46, down 0.51%.Varun Beverages Ltd has lost around 11.89% in last one month.Meanwhile, Nifty FMCG index of which Varun Beverages Ltd is a constituent, has eased around 5.18% in last one month and is currently quoting at 50922.75, down 0.27% on the day. The volume in the stock stood at 52.38 lakh shares today, compared to the daily average of 65.06 lakh shares in last one month.
The benchmark February futures contract for the stock is quoting at Rs 440.5, down 1.41% on the day. Varun Beverages Ltd tumbled 22.7% in last one year as compared to a 8.67% rally in NIFTY and a 9.06% fall in the Nifty FMCG index.
The PE of the stock is 56.24 based on TTM earnings ending December 25.