Hindustan Coca-Cola Beverages targets FY26 growth after weather, macro headwinds and board restructure 

INDIA – Hindustan Coca-Cola Beverages Ltd (HCCB), the Indian bottling arm of Coca-Cola, expects steady growth in FY26 despite experiencing disruption in the first half of the year due to adverse weather and broader macroeconomic pressures.  

The company remains optimistic about market conditions and plans continued investment in capacity expansion, product portfolio strengthening, and wider distribution, according to Chief Financial Officer Harsh Bhutani. 

Bhutani said the company sees a “promising potential outlook” supported by favourable macro trends, including rapid urbanisation and rising disposable incomes. He added that HCCB will continue to prioritise capacity expansion and route-to-market initiatives to reinforce its leadership in India’s beverage market. 

HCCB recently completed a major ownership change following the divestment of a 40% stake to the Jubilant Bhartia Group.  

The transaction, finalised in July, prompted a board restructuring to include representatives from Jubilant’s diverse business sectors, which span pharmaceuticals, food services, agribusiness, and energy. 

Confirming the development, Bhutani noted the company is now jointly owned by The Coca-Cola Company and the Jubilant Bhartia Group. Coca-Cola executives have stated the move aligns with the global strategy to refranchise bottling assets and drive growth through local partnerships.  

Coca-Cola Chairman and CEO James Quincey highlighted the sale during a recent earnings call, saying the collaboration is intended to build a stronger system and accelerate expansion. 

Bhutani said HCCB continues to work closely with its new partners and remains focused on strengthening market execution despite near-term operating challenges. “Despite these challenges, we remain confident in our ability to recover and continue investing in the market and delivering sustainable growth,” he stated. 

Financial filings show the company reported a 9% decline in revenue to Rs 12,751.29 crore (US$1.44B) in FY25, and a 73% drop in net profit to Rs 756.64 crore (US$85.24M).  

However, HCCB attributed the decline to a high base effect in FY24, which included gains from divesting bottling operations in several regions including Rajasthan, Bihar, the Northeast, and parts of West Bengal. 

On a comparable basis, Bhutani said revenue increased 5.9% year-on-year, with a profit before tax margin of 7.2% and an EBITDA margin of 13.2%. 

HCCB continues to expand its operating footprint, supported by execution excellence and capacity growth.  

The company is investing in distribution expansion through new retail outlets, additional coolers, and increased street-level presence. It currently operates 14 manufacturing sites, including two newly opened greenfield facilities in Telangana and Maharashtra. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates