Varun Beverages Limited (NSE: VBL), a prominent player in the beverage industry, has announced its financial results for the first quarter ending March 31, 2026. The company reported a robust 18.1% year-on-year increase in revenue, reaching ₹65,741.9 million compared to ₹55,669.4 million in the same quarter of the previous year.
The growth in revenue was driven by a 16.3% increase in consolidated sales volume, which rose to 363.4 million cases in Q1 2026 from 312.4 million cases in Q1 2025. This was supported by a strong volume growth of 14.4% in India and 21.4% in international markets. Net realisation per case improved by 1.6% at the consolidated level, although it declined by 1.5% in India due to strategic initiatives such as upsizing of packs and selective price-point launches.
Varun Beverages also reported an increase in its EBITDA by 21.0%, amounting to ₹15,289.3 million, up from ₹12,639.6 million in Q1 2025. The EBITDA margins improved by 55 basis points to 23.3%, with India seeing a 112 basis points improvement due to operational efficiencies and improved gross margins.
The company’s Profit After Tax (PAT) rose by 20.1% to ₹8,787.1 million, up from ₹7,313.6 million in the previous year, driven by strong volume growth in both domestic and international territories. However, depreciation increased by 30.9% due to the commissioning of new plants, and finance costs rose by 18.0% following the acquisition of Twizza in South Africa.
In a strategic move, Varun Beverages completed the acquisition of Twizza (Pty) Limited in South Africa, enhancing its manufacturing footprint and market capabilities in Africa. The acquisition, valued at ZAR 2,053 million, is expected to generate significant operational and commercial synergies.
The company also announced an interim dividend of ₹0.50 per share, leading to a total cash outflow of approximately ₹1,691 million.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).