Varun Beverages Limited reported robust financial results for the first quarter ending March 31, 2026. The company achieved an 18.1% YoY revenue growth to Rs. 65,741.9 million, supported by a 16.3% increase in consolidated sales volumes. EBITDA rose by 21.0% to Rs. 15,289.3 million, while Profit After Tax (PAT) climbed by 20.1% to Rs. 8,787.1 million, driven by strong demand across both Indian and international markets.
Financial Highlights
The company delivered a strong performance in Q1 CY2026, marked by healthy demand and disciplined execution. Consolidated sales volumes reached 363.4 million cases, a 16.3% increase over the previous year, with international territories contributing a robust 21.4% growth. Gross margins improved by 62 bps to 55.2%, reflecting the benefits of early raw material stocking despite inflationary pressures.
Strategic Growth and Acquisitions
Varun Beverages continues to expand its footprint in the African market. The company successfully consummated the acquisition of 100% of Twizza (Pty) Limited in South Africa, effective March 18, 2026, for an enterprise value of ZAR 2,053 million. Furthermore, the company has entered into an agreement to acquire Crickley Dairy Proprietary Limited, further strengthening its presence in the region’s beverage and dairy sectors.
Operational Performance and Dividends
In India, the company focused on market penetration through pack upsizing and selective price-point launches, which successfully onboarded new consumers. Operational efficiencies led to a 112 bps improvement in Indian EBITDA margins. Following these positive results, the Board of Directors has approved an interim dividend of 25% of face value, amounting to Rs. 0.50 per share, with a total cash outflow of approximately Rs. 1,691 million.
Future Outlook
The management remains confident in long-term growth prospects, citing favorable demographics, rising disposable incomes, and increasing urbanization. With newly commissioned facilities stabilizing and a diversified, expanding portfolio, the company is well-positioned to sustain its growth trajectory and continue delivering value to stakeholders.
Source: BSE
