Varun Beverages Q2 CY 2026 Results: Net Profit Rises 15.1% To ₹1,525 Crore, Revenue Up 20.4%; Declares Interim Dividend

Varun Beverages (VBL), one of PepsiCo's largest franchise bottlers, reported a healthy set of earnings for the quarter ended June 2026 (Q2 CY2026) on Tuesday, 28th July, supported by robust volume growth across India and international markets. The board also approved an interim dividend of 25%, or ₹0.50 per equity share.

The company, which follows the January-December financial year, reported a 15.1% year-on-year increase in consolidated net profit to ₹1,525.36 crore for the June quarter, compared with ₹1,325.49 crore in the corresponding period last year.

Revenue from operations (net of excise duty and GST) rose 20.4% YoY to ₹8,451.23 crore, up from ₹7,017.37 crore a year ago.

EBITDA increased 17.2% year-on-year to ₹2,343.04 crore from ₹1,998.77 crore in the year-ago quarter. However, the EBITDA margin narrowed by 76 basis points to 27.7%, mainly due to the consolidation of the lower-margin Twizza business.

Gross margin improved by 44 basis points to 55.0%, supported by a higher contribution from the international business.

Varun Beverages Q2 CY 2026 Results

Dividend

The Board of Directors declared an interim dividend of ₹0.50 per equity share, equivalent to 25% of the face value, involving a total cash outflow of around ₹169.1 crore.

Sales Volume And Operational Performance

Consolidated sales volume increased 19.8% year-on-year to 466.7 million cases, compared with 389.7 million cases in the corresponding quarter last year. Domestic volumes grew 14.4%, while the international business recorded 38.4% growth, including 11.8 million cases contributed by the recently acquired Twizza business in South Africa.

The company said gross margins in India remained resilient despite elevated raw material costs, supported by early procurement of key inputs and a higher contribution from low- and no-sugar beverages. EBITDA margin in the domestic business improved by 38 basis points, aided by operating leverage from healthy volume growth, although higher transportation and distribution costs partly offset the gains.

Finance costs increased 55.8% year-on-year, primarily due to borrowings related to the Twizza acquisition.

H1 CY 2026 Performance

For the six months ended June 2026, revenue from operations increased 19.4% to ₹15,025.42 crore, compared with ₹12,584.31 crore in the year-ago period.

EBITDA rose 18.7% to ₹3,871.96 crore, while net profit increased 16.9% to ₹2,404.07 crore. Low- and no-sugar beverages accounted for around 73% of the company's consolidated sales volumes during the first half of the calendar year.

Varun Beverages Q2 CY 2026 Results: Management Commentary

Chairman Ravi Jaipuria said the company delivered strong volume-led growth across markets during the quarter, with consolidated sales volumes rising 19.8%, helping drive a 20.4% increase in revenue from operations.

He said the company's expanded manufacturing footprint, extensive distribution network and continued investments in chilling infrastructure supported growth in India despite an uneven summer season.

During the quarter, Varun Beverages also extended its exclusive bottling and trademark licence agreement with PepsiCo in India until April 2049. The company further entered into a strategic alliance with Asahi Group Holdings to introduce the CALPIS beverage brand in India, marking its entry into the fermented dairy beverage segment.

Jaipuria added that the renewed PepsiCo agreement removes the earlier restriction requiring Varun Beverages to operate solely as a special purpose vehicle for PepsiCo's business in India, providing the company with greater flexibility to pursue future growth opportunities.

Varun Beverages Share Price

Following the June quarter results, Varun Beverages shares fell over 2% in Tuesday's trade. The stock was trading at ₹453.85 on the NSE, down 2.29% from its previous close of ₹464.50.

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