Varun Beverages Limited, a franchisee of PepsiCo, reported an increase in its consolidated financial performance for the quarter ended March 31, 2026.
Revenue from operations stood at Rs 6,721.54 crore in the March 2026 quarter, compared with Rs 5,680.02 crore in the corresponding quarter of the previous year. This reflects a rise of Rs 1,041.52 crore, or 18.34 per cent year-on-year.
Total income increased to Rs 6,765.07 crore from Rs 5,708.08 crore in the year-ago period. This marks a growth of Rs 1,056.99 crore, translating into an increase of 18.52 per cent.
Total expenses for the quarter rose to Rs 5,597.93 crore in March 2026, compared with Rs 4,729.70 crore in March 2025. This is an increase of Rs 868.23 crore, or 18.36 per cent year-on-year.
Consolidated profit attributable to owners of the company stood at Rs 872.36 crore in the March 2026 quarter, up from Rs 726.49 crore in the same quarter last year. This represents an increase of Rs 145.87 crore, or 20.08 per cent.
Operational performance
In terms of operational performance, revenue from operations on a net basis rose 18.1 per cent year-on-year to Rs 6,574.19 crore in the first quarter of calendar year 2026, compared with Rs 5,566.94 crore in the corresponding period of the previous year.
Consolidated sales volume increased to 363.4 million cases in Q1 CY2026 from 312.4 million cases in Q1 CY2025, registering a growth of 16.3 per cent. Volume growth in India stood at 14.4 per cent, while international territories reported a growth of 21.4 per cent.
Net realisation per case increased by 1.6 per cent at the consolidated level, supported by improved realisations in international markets. However, net realisation per case in India declined by 1.5 per cent due to volume-led initiatives, including pack size changes and price-point launches.
Gross margins improved by 62 basis points to 55.2 per cent in Q1 CY2026. The company said the improvement was supported by early stocking of key raw materials.
The product mix during the quarter comprised 73.6 per cent carbonated soft drinks, 7.5 per cent non-carbonated beverages and 18.9 per cent packaged drinking water. The share of low sugar or no sugar products increased to around 63 per cent of consolidated sales volumes.
Profitability and costs
Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 21.0 per cent to Rs 1,528.93 crore in Q1 CY2026 from Rs 1,263.96 crore in Q1 CY2025. EBITDA margin improved by 55 basis points to 23.3 per cent. In India, EBITDA margins rose by 112 basis points.
Profit after tax increased by 20.1 per cent to Rs 878.71 crore in Q1 CY2026 from Rs 731.36 crore in Q1 CY2025.
Depreciation increased by 30.9 per cent due to the commissioning of new plants at Buxar, Prayagraj, Damtal and Meghalaya. Finance cost rose 18.0 per cent due to acquisition-related impact.
Acquisitions and dividends
During the quarter, the company completed the acquisition of Twizza (Pty) Limited in South Africa through its subsidiary at an enterprise value of ZAR 2,053 million. The company said Twizza has become a step-down subsidiary with effect from March 18, 2026.
The company has also agreed to acquire a 100 per cent stake in Crickley Dairy Proprietary Limited in South Africa at an enterprise value of about ZAR 238 million, subject to regulatory approvals.
The board approved an interim dividend of Rs 0.50 per share, which is 25 per cent of the face value. The total cash outflow on account of the interim dividend is estimated at Rs 1,691 million.
The interim dividend will be paid on and from Tuesday, May 5, 2026, to those shareholders whose name appears in the Register of Members of the Company or in the list of beneficial owners maintained by the Depositories as on Friday, May 1, 2026.
Company profile and share price
Varun Beverages Limited produces and distributes carbonated soft drinks and non-carbonated beverages, including packaged drinking water, under brands owned by PepsiCo.
The company operates across multiple states and union territories in India and has a presence in international markets, including Nepal, Sri Lanka and several African countries.
Varun Beverages shares were trading at Rs 490.70, down 0.05 per cent on April 27, 2026, at 12:17 post result announcement.
