Varun Beverages Posts 15% Profit Growth, Revenue Jumps 21% in Q2

New Delhi: Varun Beverages Ltd, PepsiCo’s largest franchise bottler, on Tuesday reported 15.07 per cent increase in consolidated net profit at Rs 1,525.35 crore for June quarter of 2026 helped by a 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 Rs 1,325.48 crore in April-June period a year ago, according to a regulatory filing from Varun Beverages Ltd (VBL).

Revenue from operations was up 20.76 per cent to Rs 8,650.57 crore in June quarter 2026.

VBL’s consolidated sales volume in the June quarter grew by 19.8 per cent year-on-year to 466.7 million cases in Q2 CY2026, the company said in its earnings statement. This was driven by a volume growth of 14.4 per cent in India and 38.4 per cent in international territories While International volumes include 11.8 million cases during the quarter from the acquisition of Twizza in South Africa, realisation per case – beverages improved by 1.2 per cent at the consolidated level with improved realisations in international territories.

According to VBL, an increase of 15.1 per cent in PAT was “driven by strong volume growth in India and International territories”.

Its gross margins improved by 44 basis points to 55 per cent in Q2 CY2026, supported by a higher mix of International business.

“In India, early stocking of key raw materials and savings in sugar consumption with higher mix of low sugar / no sugar products helped in maintaining gross margins despite the high inflationary raw material environment,” said VBL.

The EBITDA increased by 17.2 per cent to Rs 2,343.04 crore in Q2 2026 from Rs 1,998.77 crore in Q2 2025.

However, its “EBITDA margins declined by 76 basis points to 27.7 per cent in Q2 CY2026 due to consolidation of Twizza business, which currently operates at lower margins,” it said.

Total expenses of VBL were up 23 per cent to Rs 6,773.49 crore in the June quarter. Total consolidated income, which includes other income, in the June quarter was at Rs 8,754.95 crore, up 20.9 per cent.

On standalone basis, which primarily includes India sales, VBL’s revenue from operation was up 13 per cent to Rs 5,996.20 crore.

In the first half (H1), VBL’s revenue from operations grew 19.4 per cent YoY to Rs 15,025.42 crore.

Commenting on the results, Chairman Ravi Jaipuria said: “In India, we saw healthy volume growth in twenties since the onset of season i.e. from March onwards except for the month of April which was about flat resulting in overall volume growth for the quarter of 14.4 per cent.” VBL’s expanded manufacturing footprint, extensive distribution network and continued investments in chilling infrastructure continued to drive growth.

Meanwhile, in a separate filing VBL said it board has approved a second interim dividend of 50 paise per equity share for 2026 of the nominal value of Rs 2 each.

Over the outlook, Jaipuria said:”Looking ahead, we remain confident in the long-term growth potential across our markets, supported by favourable demographics, rising disposable incomes and increasing consumption of packaged beverages.” Shares of Varun Beverages Ltd on Tuesday were trading at Rs 433.75 apiece on BSE, down 6.61 per cent from the previous close.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)