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Informist, Monday, Apr. 27, 2026

 

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--Varun Beverages Jan-Mar consol net profit INR 8.72 bln 
--Analysts saw Varun Beverages Jan-Mar consol net profit at INR 7.47 bln 
--Varun Beverages Jan-Mar consol revenue INR 67.22 bln 
--Analysts saw Varun Beverages Jan-Mar consol revenue at INR 60.02 bln 
--Varun Beverages Jan-Mar consol PAT INR 8.72 bln vs INR 7.26 bln year ago 
--Varun Beverages Jan-Mar consol revenue INR 67.22 bln vs INR 56.80 bln 
--Varun Beverages to pay INR 0.5 per share interim dividend 
--Varun Beverages interim dividend record date May 1 
--Varun Beverages Jan-Mar consol EBITDA INR 15.29 bln vs INR 12.64 bln 
--Varun Beverages Jan-Mar consol EBITDA margin 23.3%, up 55 bps on yr 
--Varun Beverages Q1 consol sales volume 363.4 mln cases, up 16.3% on yr 
--Varun Beverages Jan-Mar consol realisation 174.1 per case up 1.6% on yr 
--Varun Beverages Jan-Mar realisation per case in India down 1.5% on yr 
--Varun Beverages Jan-Mar gross margin 55.2%, up 62 bps on year

 

By Avishek Rakshit

 

KOLKATA – High volume growth in the overall portfolio and better than expected performance in India helped Varun Beverages Ltd. beat the Street in its March quarter results and report the highest revenue growth in the past four quarters.

 

One of the largest global franchisees of US-based PepsiCo, Inc., Varun Beverages reported a consolidated net profit of INR 8.72 billion, up over 20% on year. This is way ahead than the INR 7.47 billion the Street was expecting. Higher sales volume led the consolidated revenue to grow over 18% on year to INR 67.22 billion against the Street's estimate of INR 60.02 billion.

 

Consolidated sales volume of the company, which primarily sells PepsiCo-licensed products in India and parts of Africa, grew by 16.3% to 363.4 million cases in the March quarter, driven by volume growth of 14.4% in India to 260 million cases and 21.4% in international territories to 103 million cases. A unit case is equal to 5.68 litres of beverage divided into 24 bottles of 237 millilitres each. The domestic volume growth is way ahead than the 3-8% Indian volume growth which brokerages had projected in the March quarter. 

 

"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," Chairman Ravi Jaipuria said in an investor presentation submitted to the bourses. "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."

 

Sales of carbonated soft drinks in the March quarter continued to comprise bulk of the sales at 74% followed by non-carbonated beverages accounting for 7% of the total sales volume. Water comprised 19% of the consolidated sales.

 

Revenue from beverages rose over 18% on year to INR 63.26 billion in the March quarter at a consolidated level, and by 12.7% on year to INR 43.77 billion in India. However, the non-beverage portfolio, comprising largely of snack products, rose by 17.3% on year to INR 2.48 billion at a consolidated level, but fell by over 27% in India to INR 1.24 billion.

 

Although the company's realisation per case improved by 1.6% on year to INR 174.1 at the consolidated level on account of improved realisations from global operations due to favourable currency movement, it fell in India. In the domestic market, which accounts for 73% of its total sales volume, realisations per case fell 1.5% on year to INR 168.1. In the investor presentation, Varun Beverages said that this decline in India was due to its focus on volume growth which resulted in upsizing of packs and selective price-point launches in targeted markets to onboard new consumers.

 

The company's gross margin improved by 62 basis points to 55.2% in the March quarter supported by early stocking of key raw materials despite the inflationary raw material environment and higher mix of low sugar and no sugar products. In the quarter under review, the mix of low sugar and no sugar products increased to 63% of the consolidated sales volume, the company said in the investor presentation. 

 

The company's earnings before interest, tax, depreciation, and amortisation rose by 21% on year to INR 15.29 billion in the March quarter and EBITDA margin improved by 55 basis points to 23.3%. In India, EBITDA margin improved by 112 bps driven by operational efficiencies from robust volume growth and improved gross margins.

 

"Our international business 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," Jaipuria said.

 

Varun Beverages also entered into an agreement to acquire Crickley Dairy through BevCo, which will further strengthen its presence in South Africa. The company is building a strong line-up of snack products and deepen its presence in high-potential markets in that continent.

 

The company declared an interim dividend of INR 0.5 per share and set May 1 as the record date. At 1411 IST, shares of the company were up 3.5% at INR 507.70 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Ashish Shirke

 

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