Varun Beverages reports 20% profit growth in Q1 2026
Varun Beverages posts 20% profit growth in Q1 2026, driven by strong demand in India and international markets, alongside strategic acquisitions and continued operational efficiency improvements.
INDIA – Varun Beverages, the largest franchise bottler of PepsiCo, has reported a 20% year-on-year increase in net profit to Rs878.71 crore (US$92.54 million) for the quarter ended March 31, 2026, supported by strong demand across domestic and international markets.
The company’s consolidated net profit rose from Rs 731.35 crore (US$77.35M) in the corresponding period last year, reflecting steady growth across its key operating regions. This quarter also marks Varun Beverages’ transition to reporting under a calendar year format.
Revenue from operations increased 18% year-on-year to Rs 6,721 crore (US$710.70M), while total consolidated income reached Rs6,765.06 crore (US$714.41M), indicating sustained growth momentum. Sales volumes rose 16.3% to 363.4 million cases, driven by robust performance in both India and overseas markets.
In India, volumes grew 14.4%, while international markets recorded a stronger increase of 21.4%, highlighting the company’s expanding global footprint.
Despite an 18% rise in input costs to Rs3,152 crore (US$333.30M), the company maintained profitability through operational efficiencies. Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased 21% to Rs1,528.90 crore (US$161.67M), with margins improving to 23.3%.
Gross margins also rose slightly to 55.2%, even as per-case realisation in India declined marginally due to pricing strategies and changes in product mix.
Ravi Jaipuria, Chairman of Varun Beverages, said demand trends in India remained positive. “In India, demand remained encouraging during the quarter, supported by our wide distribution reach, strengthened execution, and continued investments in manufacturing capacity and chilling infrastructure,” he stated.
He added: “We undertook targeted initiatives to drive volumes and strengthen our domestic portfolio, including pack upsizing, selective price-point launches in identified markets to onboard new consumers, and new launches in the energy and juice-based drink segments.”
The company also highlighted its acquisition of Twizza in South Africa through its subsidiary BevCo, aimed at strengthening manufacturing and distribution capabilities in the region and delivering long-term operational synergies.
In addition, Varun Beverages declared an interim dividend of Rs 0.50 per equity share for FY2026.
Earlier, on March 17, 2025, the company, through The Beverages Company, entered into a share purchase agreement with Crickley Dairy to acquire 100% share capital, subject to regulatory approvals, at an enterprise value of approximately ZAR 238 million.
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