Varun Beverages Limited reported a robust first quarter of CY2026, with consolidated revenue rising by 18.1% year-on-year to Rs. 65,742 million. The company achieved a 16.3% growth in total sales volumes, driven by strong demand in both Indian and international territories. EBITDA improved by 21.0% to Rs. 15,289 million, reflecting disciplined operational execution and strategic investments. The company also declared an interim dividend of 25% of face value.
Financial Highlights for Q1 2026
The company delivered a strong financial performance in the quarter ended March 31, 2026. Consolidated net revenue reached Rs. 65,741.9 million, an increase of 18.1% compared to the same period in the previous year. Profit after tax (PAT) also saw significant growth, rising by 20.1% to Rs. 8,787.1 million, supported by strong volume growth and operational efficiencies.
Operational Performance and Market Reach
Total sales volume for the quarter grew to 363.4 million unit cases, a 16.3% increase year-on-year. This growth was fueled by a 14.4% increase in India and a 21.4% increase in international markets. The company’s EBITDA margins expanded by 55 basis points to 23.3%, with India-specific margins seeing a 112 basis point improvement, driven by robust volume growth and improved gross margins.
Strategic Acquisitions and Future Outlook
In a significant move to strengthen its international footprint, the company consummated the acquisition of a 100% stake in Twizza (Pty) Limited, South Africa, in March 2026. Furthermore, the company has entered into an agreement to acquire Crickley Dairy Proprietary Limited, further expanding its presence in the African market. Looking ahead, management remains confident in long-term growth opportunities supported by favorable demographics, rising incomes, and increasing beverage consumption.
Dividend Announcement
Reflecting its commitment to creating shareholder value, the Board of Directors has approved an interim dividend of 25% of face value, amounting to Rs. 0.50 per share. This represents a total cash outflow of approximately Rs. 1,691 million.
Source: BSE
