Varun Beverages has announced its results for the third quarter and nine months ended September 30, 2026. The company reported a consolidated revenue from operations increase of 33.2% year-on-year to Rs. 66,075.6 million. EBITDA grew by 25.1% to Rs. 14,267.1 million. An interim dividend of 25% (Rs. 0.50 per share) was also approved.
Varun Beverages Reports Strong Q3 CY2026 Financials
Varun Beverages Limited has disclosed its financial performance for the third quarter and the nine months ended September 30, 2026. The company has reported robust growth across key financial metrics, driven by strong volume expansion and improved realisations.
Key Financial Highlights for Q3 CY2026
The consolidated revenue from operations for the quarter saw a significant increase of 33.2% year-on-year, reaching Rs. 66,075.6 million. For the nine months (9M) of CY2026, revenue grew by 23.3% to Rs. 218,146 million. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for the third quarter grew by 25.1% to Rs. 14,267.1 million, with an EBITDA margin of 21.6%. The 9M CY2026 EBITDA stood at Rs. 52,746 million, a growth of 19.9%.
Volume Growth and Market Performance
The strong revenue performance was underpinned by a consolidated sales volume growth of 28.7% in India, with overall volume growth at 22.5% during the quarter. International territories also contributed significantly with a volume growth of 39.9%. Consolidated net realisation per case for beverages improved by 2.2% year-on-year.
Profitability and Margins
Profit After Tax (PAT) for Q3 CY2026 increased by 13.5% year-on-year to Rs. 8,306 million. For 9M CY2026, PAT grew by 15.5% to Rs. 32,023 million. Gross margins moderated by 334 basis points year-on-year to 53.1% in Q3 CY2026, primarily due to higher packaging material costs. However, EBITDA margins moderated by only 140 basis points due to operating leverage from robust volume growth.
Dividend Announcement
In line with its dividend policy, the Board of Directors has approved an interim dividend of 25% of the face value, which amounts to Rs. 0.50 per share. This will result in a total cash outflow of Rs. 1,691 million.
International Business Expansion
The international business continues to show strong progress, with Africa identified as a key continent for expansion. The merger of Twizza with BevCo has been completed, and the company anticipates significant operational synergies. Beverage operations have commenced in Kenya with new brand launches, and an exclusive distribution agreement with Mondelez has been signed in Zimbabwe.
Future Outlook
Looking ahead, Varun Beverages remains focused on driving growth across existing markets, supported by strategic investments. The company will also selectively pursue opportunities for business expansion while maintaining a strong emphasis on profitability and long-term value creation. Management expressed optimism regarding sustained growth across both Indian and international markets.
Source: BSE
