Varun Beverages’ profit rose 20% to ₹878.71 crore in Q1 CY2026 on strong volumes
Revenue and EBITDA grew in double digits with better margins
Company saw robust growth across India and international markets
Varun Beverages, PepsiCo’s largest franchise bottler, posted a strong set of results for the quarter ended March 2026, announced on Monday, April 27. The company’s consolidated net profit rose to ₹878.71 crore from ₹731.35 crore in the same period last year, reflecting steady demand across key markets.
This quarter also marks the company’s shift to reporting under a calendar year format, making it the first of its kind.
1 April 2026
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Revenue from operations increased 18% year-on-year (YoY) to ₹6,721 crore, supported by higher sales volumes in both domestic and international businesses. Total consolidated income stood at ₹6,765.06 crore, marking continued growth momentum.
Strong Volumes, Steady Margins
Sales volumes rose 16.3% to 363.4 million cases, driven by solid demand across domestic and international markets. India volumes grew 14.4%, while overseas markets led with a 21.4% increase, reflecting the company’s expanding global footprint.
Despite an 18% rise in input costs to ₹3,152 crore, profitability remained intact due to operational efficiencies. EBITDA increased 21% to ₹1,528.90 crore, with margins improving to 23.3%. Gross margins also edged up to 55.2%, even as per-case realisation in India dipped slightly due to pricing strategies and product mix changes.
Expansion Push
Chairman of Varun Beverages, Ravi Jaipuria said the company’s performance was driven by “healthy demand, disciplined execution, and continued progress across markets.” He added that international operations continued to show steady growth.
The company also highlighted its acquisition of Twizza in South Africa via BevCo, strengthening its manufacturing and distribution capabilities in the region. The deal is expected to generate long-term operational synergies.
The company has also declared an interim dividend of ₹0.50 per equity share for FY26.
Despite initial market volatility post-results, Varun Beverages shares recovered losses and turned positive, with the stock already up about 25% year-to-date, reflecting investor confidence in its growth trajectory.
