Varun Beverages Announces Interim Dividend and Posts Strong Q3 Results on Consolidated Basis

Varun Beverages Announces Interim Dividend and Posts Strong Q3 Results on Consolidated Basis​

Varun Beverages Limited (VBL) announced its unaudited consolidated financial results for the quarter and half year ended June 30, 2026, reporting robust figures across operations. In a corporate decision announced alongside the results, the Board of Directors approved the payment of the second interim dividend for the financial year 2026.

The Board meeting held on July 28, 2026, considered and approved key operational updates and shareholder benefits. The company decided to pay a 2nd interim dividend amounting to ₹0.50 (Fifty Paisa only) per Equity Share. This decision was made against the backdrop of VBL having a total issued, subscribed and paid-up share capital of 338,24,64,894 Equity Shares with a nominal value of ₹2/- each.

The company set August 1, 2026, as the Record Date to determine shareholder entitlement for the dividend. The 2nd interim dividend is scheduled to be paid starting from Tuesday, August 4, 2026.

Financial Highlights and Performance Overview​

VBL’s consolidated financial performance showed significant growth in revenue during the first half of the fiscal year. Total income stood at 155,200.16 million for the six months ended June 30, 2026, up from 129,482.63 million recorded in the corresponding period last year. The company reported a Net Profit After Tax of 24,040.68 million for the half-year, compared to 20,568.46 million in the previous reporting period.

The earnings per share (Basic) stood at ₹7.08 for the six months ended June 30, 2026, while the corresponding figure for the prior year’s half-year was 6.04.

Consolidated financial data for the quarter and half year ending June 30, 2026:

Strategic Business Developments and Agreements​

During the review period, VBL reported several significant strategic moves across its global operations:

• South Africa Acquisition: The Beverage Company Proprietary Limited ('Bevco'), a subsidiary of VBL, acquired 100% Share Capital of Twizza Proprietary Limited ("Twizza"), a South African company. This acquisition, which occurred effective March 18, 2026, set Twizza as a step-down subsidiary and involved an enterprise value of ZAR 2,053 Million (equivalent to ₹11,398 Million).
• Future Acquisition Target: Bevco has entered into an agreement to acquire 100% stake in Crickley Dairy Proprietary Limited ('Crickley'), a company engaged in manufacturing and distribution of value-added dairy and juice based drinks. This potential acquisition is slated for completion by September 30, 2026, with an enterprise valuation at ZAR 238.00 million (equivalent to ₹1,314.68 Million).
• Renewable Energy Investments: VBL made investments in the renewable energy sector. The company subscribed 29.99% equity share capital for a consideration of ₹15.84 million in FPEL HR2 Energy Private Limited, focused on solar power consumption in Haryana. Furthermore, the company acquired an additional 23% equity share capital of ₹70.51 million in Jager Renewables Two Private Limited, bringing VBL’s holding to 49%.
• Exclusive Licensing and Brand Alliance: The Board approved a revised Exclusive bottling appointment and trademark license agreement (EBA) with PepsiCo Inc., extending the EBA up to April 30, 2049. This revision deleted previous requirements that restricted VBL solely to acting as an SPV for PepsiCo's business.
• New Brand Alliance: VBL entered a franchise arrangement with Asahi Group Holdings to introduce and commercialize CALPIS brand in India, planning to launch Original and Mango variants of the iconic fermented milk based beverage.
• Kenya Acquisition: The subsidiary VBL Industries (Kenya) Limited ('VBL Kenya') has agreed to acquire the business of Devyani Food Industries (Kenya) Limited ('DFIL Kenya') for USD 32 Million (₹3,050 million). The expected completion date for this acquisition is on or before August 1, 2026.

VBL Stock Price Movement​

At 12:50 PM, Varun Beverages Limited sheds 4.64% in live trading, with the stock price dipping to ₹442.95 as momentum falters. The equity has seen heavy activity in the current session, with nearly 13.98 million shares traded thus far.