The revenue from operations increased to Rs 6,574.19 crore, driven by strong volume growth in India and International territories
Marking a healthy improvement in its performance, Varun Beverages, a franchisee of PepsiCo, has reported an 18.1 per cent rise in its revenue from operations (net of excise/GST) in the first quarter of the current year. The revenue has grown to Rs 6,574.19 crore from Rs 5,566.94 crore in Q1CY25.
The financial results of the company revealed that the net profit increased by 20.1 per cent to Rs 878.71 crore in Q1CY26 from Rs 731.36 crore in Q1CY25, driven by strong volume growth in India and International territories. Ebitda increased by 21.0 per cent to Rs 1,528.93 crore in Q12026 from Rs 1,263.96 crore in Q12025.
A final dividend of Rs 0.50 per equity share of the face value of Rs 2 each for the year ended 31 December 2025 was approved by the shareholders at the Annual General Meeting (AGM) held on 01 April 2026 and the same has been duly paid. In line with the guidelines of the company’s dividend policy, the board of directors has approved an interim dividend at 25 per cent of face value (Rs 0.50 per share). Total cash outflow would be around Rs 169.1 crore.
“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,” stated Ravi Jaipuria, Chairman, Varun Beverages.
Sales And Margins
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.
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.
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. CSD constituted 73.6 per cent, NCB 7.5 per cent and packaged drinking water 18.9 per cent in Q1CY26. In Q1CY26, mix of low sugar / no sugar products has increased to around 63 per cent of consolidated sales volumes.
The company pointed out that depreciation increased by 30.9 per cent on account of commissioning of new plants of last year (Buxar, Prayagraj, Damtal and Meghalaya), which were not present in the base quarter. Finance cost increased by 18.0 per cent on account of the acquisition of Twizza in South Africa in the current quarter. The income on surplus cash in India is accounted as other income, it said.
Footprint Expansion
The company has consummated the acquisition of Twizza, through its subsidiary, The Beverages Company (BevCo) at an enterprise value (post due diligence adjustments) of ZAR 2,053 million. Twizza has become a step-down subsidiary of the company with effect from 18 March 2026.
On 17 March 2025, VBL, through its subsidiary, The Beverages Company entered into a share purchase agreement with Crickley Dairy for the purchase of 100 per cent share capital, subject to regulatory and other approvals (if any) including but not limited to Competition Commissions of South Africa at an enterprise value of around ZAR 238 million (including working capital).
