Varun Beverages Limited reported a robust performance for the quarter ended March 31, 2026. The company achieved an 18.1% year-on-year revenue increase to Rs. 65,742 million, while EBITDA grew by 21%. Growth was supported by a 16.3% rise in consolidated sales volumes, with strong performance in both Indian and international markets. The Board also declared an interim dividend of 25%, reflecting the company’s strong financial position and optimism for sustained growth.
Financial Highlights for the First Quarter
Varun Beverages delivered a strong financial showing for Q1 CY2026. Revenue from operations reached Rs. 65,741.9 million, marking an 18.1% year-on-year increase. Profit After Tax (PAT) also saw significant growth, rising by 20.1% to Rs. 8,787.1 million. These results were underpinned by 16.3% consolidated volume growth, with India growing at 14.4% and international territories recording a 21.4% increase.
Strategic Growth and Operational Efficiency
Management highlighted that performance was bolstered by disciplined execution and investments in manufacturing capabilities. EBITDA margins improved by 55 bps to 23.3%, driven by operational efficiencies from new, larger, and more cost-effective production facilities. The company also successfully prioritized healthy beverage options, with low-sugar and no-sugar products now accounting for approximately 63% of consolidated sales volumes.
International Expansion
The international business segment continues to be a growth engine. During the quarter, the company finalized the acquisition of Twizza in South Africa and entered into an agreement to acquire Crickley Dairy. These strategic moves are designed to strengthen the company’s manufacturing footprint and route-to-market capabilities in Africa’s largest soft drink market, with expectations for meaningful operational and commercial synergies in the near future.
Future Outlook
Despite an inflationary environment, the leadership team expressed confidence in maintaining strong growth momentum. The company’s focus remains on expanding its distribution network, with plans to add half a million new outlets this calendar year. With adequate capacity, a diversified product portfolio, and a firm commitment to operational efficiency, Varun Beverages anticipates continued double-digit growth for the next 5-10 years.
Source: BSE
