Varun Beverages Reports Strong Q1 Results

Varun Beverages, the bottling partner of PepsiCo, announced its results for the quarter ended March 2026, with a consolidated net profit of ₹872.3 crore, a 20% year-over-year (YoY) increase. The company's revenue from operations rose by 18.3% YoY, reaching ₹6,721 crore, up from ₹5,680 crore in the corresponding quarter of the previous financial year.

The firm has also announced an interim dividend of ₹0.50 per share, with the record date for determining shareholder eligibility set as Friday, May 1. Varun Beverages' revenue (ex-excise) rose 18% year-on-year to ₹6,574 crore, while EBITDA increased 21% to ₹1,528.7 crore compared to ₹1,264 crore in the year-ago period.

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The company's margins also expanded, with EBITDA margin improving to 22.8% from 21.6% last year. On an ex-excise basis, margins stood at 23.2%, up from 22.7%. Ravi Jaipuria, Chairman of Varun Beverages, attributed the company's strong performance in Q1 CY2026 to healthy demand and disciplined execution across markets.

Consolidated sales volumes grew 16.3%, driven by a 14.4% increase in India and 21.4% growth in international markets. Revenue rose 18.1% year-on-year to ₹6,574 crore, while EBITDA climbed 21% to ₹1,529 crore. In India, demand remained robust, aided by an extensive distribution network, improved execution, and ongoing investments in capacity and chilling infrastructure.

Internationally, Varun Beverages strengthened its presence in Africa by completing the acquisition of Twizza in South Africa through BevCo, enhancing its manufacturing and distribution capabilities. The company has also signed an agreement to acquire Crickley Dairy, further expanding its footprint, subject to approvals.

Looking ahead, Varun Beverages remains confident in the long-term opportunity across its markets, supported by favorable demographics, rising incomes, growing urbanization, and increasing beverage consumption. With adequate capacities, a diversified portfolio, and a strong distribution network, the company is well-positioned to deliver sustained growth and create long-term value for all its stakeholders.

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Varun Beverages' share price today opened at ₹491.50 apiece on the BSE, touching an intraday high of ₹504.90 per share and an intraday low of ₹480.10 apiece. According to Anshul Jain, Head of Research at Lakshmishree, Varun Beverages has failed to sustain above a 53-week rectangle breakout at 428, indicating lack of follow-through and a potential bull trap at higher levels. The subsequent move appears driven by short covering rather than fresh accumulation, which raises caution on trend sustainability.