Varun Beverages Ltd (VBL), PepsiCo's largest franchise bottler, on Monday reported 20.14% increase in consolidated net profit to ₹878.71 crore for March quarter 2026, helped by double-digit volume growth in India and international markets.
The company, which follows the calendar year as its financial year, had posted a net profit of ₹731.35 crore in January-March 2025, according to a regulatory filing from Varun Beverages Ltd (VBL).
Revenue from operations was up 18.33% year-on-year to ₹6,721.53 crore in March quarter.
1 April 2026
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Sales volume in the quarter grew 16.3% to 363.4 million cases from 312.4 million cases in Q1 2025, driven by volume growth of 14.4% in India and 21.4% in international territories, said an earnings statement by the company.
Moreover, net realisation per case improved by 1.6% at the consolidated level, supported by improved realisations in international territories primarily due to favourable currency movement, it added.
However, net realisation per case in India declined by 1.5% "primarily due to volume growth initiatives" such as upsizing of packs and selective price-point launches in targeted markets to onboard new consumers, said VBL.
VBL's gross margins also improved by 62 basis points at 55.2% in Q1 2026. This improvement was supported by early stocking of key raw materials despite the inflationary raw material environment, the earning statement added.
Total expenses were up 18.35% to ₹5,597.92 crore in March quarter. Total consolidated income, which includes other income, was at ₹6,765.06 crore, up 18.5%.
Commenting on the results, Chairman Ravi Jaipuria said this "strong performance in the first quarter of CY2026, supported by healthy demand, disciplined execution, and continued progress across our markets." In India, demand remained encouraging during the quarter, supported by the company's distribution reach, strengthened execution, and continued investments in manufacturing capacity and chilling infrastructure, he said.
Its international business also continued to make steady progress during the quarter.
"We consummated the acquisition of Twizza in South Africa through BevCo, strengthening our manufacturing footprint and route-to-market capabilities in Africa’s largest soft drinks market. The acquisition is expected to generate meaningful operational and commercial synergies over time," he said.
Besides, VBL entered into an agreement to acquire Crickley Dairy through BevCo, which will further strengthen its presence in South Africa, subject to regulatory and other approvals.
"Across Africa, we continue to build scale in snacks and deepen our presence in high-potential markets, in line with our strategy of broadening the portfolio and strengthening consumer relevance," said Jaipuria.
The company has also announced an interim dividend of 25%, which is 50 paise per equity share of face value of ₹2 each.
Over the outlook, Jaipuria said :"Looking ahead, we remain confident in the long-term opportunity across our markets, supported by favourable demographics, rising incomes, growing urbanization, and increasing beverage consumption. With adequate capacities, a diversified portfolio, and a strong distribution network, we are well-positioned to deliver sustained growth and create long-term value for all our stakeholders.” Shares of Varun Beverages Ltd on Monday were trading at ₹503.10 apiece on BSE, up 2.52% from the previous close.
