Varun Beverages Posts Strong Q1 Results, Driven by Robust Volume Growth

Varun Beverages Ltd has reported a strong set of consolidated results for the January-March quarter, with net profit rising 20.1 percent year-on-year to Rs 878.7 crore. The beverage company's revenue (net of excise duty) grew 18.1 percent on-year to Rs 6,574.2 crore during the quarter.

Shares of Varun Beverages fell immediately after the results, but soon recovered losses and swung back into green. The stock was trading up over 1 percent at Rs 495.5 on NSE in the afternoon trade.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) increased 21 percent to Rs 1,528.9 crore, while EBITDA margin expanded to 23.3 percent, up 55 basis points from a year ago.

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Varun Beverages' sales volumes rose 16.3 percent to 363.4 million cases in Q1 CY2026, supported by 14.4 percent growth in India and 21.4 percent growth in international markets.

Realisation per case improved modestly at the consolidated level, aided by better pricing in overseas markets. However, India realisations declined due to volume-led initiatives such as pack upsizing and price-point launches, the company said in a filing to the stock exchanges.

The company said gross margins improved by 62 basis points to 55.2 percent, supported by early stocking of key raw materials and a higher share of low- and no-sugar products, which accounted for around 63 percent of consolidated volumes.

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On the business front, Varun Beverages completed the acquisition of South Africa-based Twizza during the quarter, strengthening its manufacturing and distribution presence in the region. It has also entered into an agreement to acquire Crickley Dairy, subject to regulatory approvals.

The board approved an interim dividend of Rs 0.50 per share of Rs 2 each, amounting to 25 percent of face value, with a total cash outflow of over Rs 169 crore.

Chairman Ravi Jaipuria said the company delivered a strong performance backed by healthy demand, execution and continued investments in capacity and distribution, and remains confident of long-term growth opportunities across its markets.