Whalesbook
Varun Beverages Ltd. reported a strong financial performance for the quarter ended March 31, 2026, with net profit up 20% year-on-year to ₹878.7 crore. Revenue from operations increased by 18.1% to ₹6,574 crore, driven by robust volume expansion.
Volume and Margin Gains
Overall sales volumes grew by 16.3%. India contributed 14.4% to this growth, while international markets achieved a faster rate of 21.4%. This broad-based demand, combined with disciplined execution, drove the strong results. EBITDA rose 21% to ₹1,528.9 crore, and EBITDA margins expanded to 23.3% from 22.7% a year earlier. Gross margins improved by 0.62 percentage points to 55.2%, aided by early raw material procurement despite rising input costs.
Strategic Acquisitions Drive Expansion
The company strengthened its international presence with the completion of the Twizza acquisition in South Africa. This move enhances manufacturing capacity and market access in a key African market. Varun Beverages has also entered into an agreement to acquire Crickley Dairy, indicating further diversification into value-added dairy and juice products, pending regulatory approvals.
Dividend and Stock Performance
Reflecting the company's performance, the board approved an interim dividend of ₹0.50 per equity share. Despite a modest 3.24% stock rise on Monday, the share price has fallen over 5% in the past year, underperforming the Nifty 100's nearly 1% gain.