Varun Beverages Reports 18.1% Revenue Growth and 21.0% EBITDA Increase in Q1 CY2026
Varun Beverages Limited (VBL) reported strong financial performance for the first quarter of the calendar year 2026, with consolidated revenues rising by 18.1% year-over-year. The company noted that the growth was supported by robust demand and continued progress across both Indian and international markets.According to management commentary, consolidated sales volumes grew by 16.3% in Q1 CY2026, reaching 363.4 million unit cases, compared to 312.4 million cases in Q1 CY2025. The total revenue for the quarter was Rs. 65,741.9 million, an increase of 18.1% compared to Rs. 55,669.4 million in the preceding year period.
EBITDA for Q1 CY2026 stood at Rs. 15,289.27 million, marking a 21.0% year-over-year improvement. Net profit after tax (PAT) grew by 20.1% to Rs. 8,787.13 million in Q1 CY2026, up from Rs. 7,313.58 million in Q1 CY2025.
Operational and Market Highlights
The growth in sales volumes was heterogeneous, with India exhibiting a strong volume increase of 14.4%, while international territories saw a significant rise of 21.4%.For the consolidated business, Beverage sales generated Rs. 63,258.6 million in Q1 CY2026, a growth of 18.1% compared to Rs. 53,552.8 million in Q1 CY2025. Non-beverage sales contributed Rs. 2,483.3 million, growing 17.3% year-over-year.
In the Indian market, the company attributed the encouraging demand to its wide distribution reach, strengthened execution, and investments in manufacturing capacity and chilling infrastructure. Targeted initiatives, such as pack upsizing and selective price-point launches in identified markets, were undertaken to onboard new consumers.
Internationally, the company continued its expansion strategy through key acquisitions. It consummated the acquisition of 100% stake in Twizza (Pty) Limited in South Africa through its subsidiary, The Beverages Company Proprietary Limited (BevCo). This acquisition was completed at an Enterprise value (post due diligence adjustments) of ZAR 2,053 million, strengthening VBL's manufacturing and route-to-market capabilities in Africa's largest soft drinks market.
Furthermore, VBL entered into a share purchase agreement for the 100% stake in Crickley Dairy Proprietary Limited, South Africa, on March 17, 2025, at an Enterprise value of approximately ZAR 238 million (including working capital).
Dividends and Forward Look
In line with its dividend policy, the Board of Directors approved an interim dividend of 25% of face value, amounting to Rs. 0.50 per share. The total cash outflow for this dividend was estimated at approximately Rs. 1,691 million.Varun Beverages Limited highlighted its enduring association with PepsiCo, stating that the relationship has spanned over three decades and has allowed the company to consolidate its presence across 26 States and 6 Union Territories in India.
Financial Performance Summary
The following table outlines the key financial figures for the quarter, detailing the increase in net revenue from operations:| Metric (Rs. million) | Q1 CY2026 | Q1 CY2025 | Growth (%) |
|---|---|---|---|
| Revenue from operations | 67,215.37 | 56,800.26 | 18.3% |
| Net Revenues | 65,741.90 | 55,669.35 | 18.1% |
| EBITDA | 15,289.27 | 12,639.64 | 21.0% |
| Net Profit after tax | 8,787.13 | 7,313.58 | 20.1% |
For a detailed breakdown of the Consolidated Profit & Loss Statement, please refer to the following table:
| Particulars (Rs. million) | Q1 2026 | Q1 2025 | YoY (%) |
|---|---|---|---|
| Revenue from operations | 67,215.37 | 56,800.26 | 18.3% |
| Excise Duty | 1,473.47 | 1,130.91 | 30.3% |
| Net Revenues | 65,741.90 | 55,669.35 | 18.1% |
| Other income | 435.28 | 280.58 | 55.1% |
| Cost of materials consumed | 31,522.02 | 26,710.71 | 18.0% |
| Purchase of stock-in-trade | 652.11 | 711.84 | -8.4% |
| Changes in inventories of FG, WIP and stock-in-trade | (2,717.68) | (2,131.92) | -27.5% |
| Employee benefits expense | 6,192.73 | 5,115.02 | 21.1% |
| Finance costs | 485.25 | 411.24 | 18.0% |
| Depreciation and amortisation expense | 3,567.94 | 2,725.13 | 30.9% |
| Other expenses | 14,803.45 | 12,624.06 | 17.3% |
| Total expenses | 54,505.82 | 46,166.08 | 18.1% |
| EBITDA | 15,289.27 | 12,639.64 | 21.0% |
| Profit before tax | 11,631.89 | 9,778.08 | 19.0% |
| Tax expense | 2,844.76 | 2,464.50 | 15.4% |
| Net profit after tax | 8,787.13 | 7,313.58 | 20.1% |
VBL Stock Price Movement
Shares of Varun Beverages Limited are gaining 0.92% in live trading, currently sitting at ₹494.95 as of 12:15 PM today. The equity is seeing high conviction in the market, trading on a robust volume of 7.09 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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