The company says that the revised agreement has replaced the earlier term, which was valid till 30 April 2039
In a move to expand their partnership, Varun Beverages, the largest franchise bottler of PepsiCo outside the United States, has expanded its exclusive bottling appointment and trademark license agreement (EBA) with PepsiCo Inc in India till 30 April 2049.
The company said in a regulatory filing that the revised agreement has replaced the earlier term, which was valid till 30 April 2039. The earlier EBA restricted VBL from carrying out any activity other than to act as an SPV for PepsiCo business. Now, this requirement is deleted in the revised EBA, the company said.
“It is hereby informed that Varun Beverages (VBL) and PepsiCo Inc. and its affiliates (PepsiCo) have entered into a revised Exclusive bottling appointment and trademark license agreement for India (EBA),” Varun Beverages added in its exchange filing.
The company’s revenue from operations (net of excise / GST) grew by 18.1 per cent year-on-year (YoY) to Rs 65,741.9 million in the first quarter of the current year (Q12026) as compared to Rs 55,669.4 million Q1CY25. Consolidated sales volume grew by 16.3 per cent to 363.4 million cases in Q1CY26 from 312.4 million cases in Q1CY25 driven by strong volume growth of 14.4 per cent in India and 21.4 per cent in international territories.
Varun Beverages’ net realisation per case improved by 1.6 per cent at the consolidated level, supported by improved realisations in international territories primarily due to favourable currency movement. Net realisation per case in India declined by 1.5 per cent, primarily due to volume growth initiatives such as upsizing of packs and selective price-point launches in targeted markets to onboard new consumers.
The company highlighted that gross margins improved by 62 bps at 55.2 per cent in Q1CY26, supported by early stocking of key raw materials despite the inflationary raw material environment. Ebitda increased by 21 per cent to Rs 15,289.3 million in Q12026 from Rs 12,639.6 million in Q12025.
