Varun Beverages Ltd reported a 20.1% year-on-year rise in profit after tax (PAT) to ₹878 crore for the March quarter of CY2026, driven by robust volume growth across India and international markets.
The company had earned Rs 731crore PAT in the corresponding quarter of the last fiscal. Revenue from operations grew 18.1% to ₹6,574 crore, compared with ₹5,566 crore in the corresponding quarter last year.
Volume-led growth momentum
Consolidated sales volumes rose 16.3% to 363.4 million cases from 312.4 million cases. Growth was led by a 14.4% increase in India and a stronger 21.4% expansion in international markets.
Net realisation per case improved 1.6% at the consolidated level, supported by better pricing in international markets, aided by favourable currency movements. In India, however, realisation per case declined 1.5%, largely due to volume-led strategies such as pack upsizing and selective price-point launches aimed at onboarding new consumers.
Margins expand despite cost pressures
Gross margins improved 62 basis points to 55.2%, supported by early stocking of key raw materials, even as input costs remained elevated.
EBITDA rose 21% to ₹1,528 crore from ₹1,263 crore, with margins expanding 55 basis points to 23.3%. In India, EBITDA margins improved 112 basis points, driven by operating leverage from strong volume growth and improved gross margins.
Costs and investments
Depreciation increased 30.9% following the commissioning of new plants in Buxar, Prayagraj, Damtal, and Meghalaya during the previous year, which were not part of the base quarter.
Finance costs rose 18%, primarily due to the acquisition of Twizza in South Africa during the quarter. Income from surplus cash in India has been accounted for under other income.
Pack upsizing, selective pricing strategies drive volumes
Chairman Ravi Jaipuria said demand in India remained strong, supported by the company’s wide distribution network, improved execution, and continued investments in manufacturing capacity and chilling infrastructure.
He added that targeted initiatives, including pack upsizing, selective pricing strategies, and new product launches in energy and juice-based segments, helped drive volumes and strengthen the domestic portfolio. The recently commissioned facilities have stabilised and are expected to support growth and improve efficiencies going forward.
Dividend announced
The Board has approved an interim dividend of 25% of face value, or ₹0.50 per share, translating into a total cash outflow of around ₹169 crore.