Varun Beverages Limited reported strong first-quarter results for January–March 2026, with net revenue rising 18.1 per cent year-on-year to ₹6574.2 crore. Profit after tax climbed 20.1 per cent to ₹878.7 crore, up from ₹731.4 crore in the same quarter last year. The stock responded positively, trading at ₹501.40 on Monday, up 2.23 per cent, with a market capitalisation of approximately ₹1.69 lakh crore.

EBITDA grew 21 per cent to ₹1528.9 crore, with margins improving 55 basis points to 23.3 per cent. Gross margins expanded 62 basis points to 55.2 per cent, aided by early procurement of raw materials despite an inflationary environment. The company’s India EBITDA margins improved 112 basis points, driven by volume efficiencies and better gross margins.

Consolidated sales volumes rose 16.3 per cent to 36.34 crore cases, with India volumes up 14.4 per cent and international territories growing faster at 21.4 per cent. However, the per-case realization in India dipped 1.5 per cent, as the company pursued volume-led initiatives including pack upsizing and targeted price-point launches to attract new consumers. At the consolidated level, realization per case improved 1.6 per cent, boosted by favourable currency movements in international markets.

The quarter’s most significant strategic development was the completion of the Twizza acquisition in South Africa through subsidiary BevCo, at an enterprise value of ZAR 205.3 crore, effective March 18, 2026. VBL also signed an agreement to acquire Crickley Dairy in South Africa for approximately ZAR 23.8 crore, pending regulatory approvals. Together, these moves deepen VBL’s footprint across Africa’s beverage and dairy segments.

Depreciation rose 30.9 per cent due to new plants commissioned last year in Buxar, Prayagraj, Damtal, and Meghalaya, while finance costs increased 18 per cent on account of the Twizza acquisition financing.

The board approved an interim dividend of ₹0.50 per share (25 per cent of face value), representing a total cash outflow of approximately ₹169.1 crore.

Low-sugar and no-sugar products now account for roughly 63 per cent of consolidated sales volumes, reflecting a continued portfolio shift toward healthier variants.

Published on April 27, 2026