Varun Beverages Q1 CY2026 Results: Good or Bad? Check Revenue, PAT, Volume Growth, Dividend Details

Varun Beverages Limited, one of the world's largest PepsiCo franchisees outside the United States, reported strong financial results for the first quarter of calendar year 2026 (Q1 CY2026), covering the period January 1 to March 31, 2026.

India's largest PepsiCo bottler delivered a clean beat across all headline metrics in the January-March 2026 quarter, backed by double-digit volume growth in both India and international markets.

Varun Beverages Q1 CY2026

According to the company's latest filing, revenue from operations grew by 18.1% YoY to Rs. 6,574 Cr, EBITDA increased 21% to Rs. 1,528 Cr, and Profit after tax (PAT) jumped 20.1% to Rs. 878 million, which is definitely a strong set of numbers entering the peak summer beverage season.

The standout metric this quarter is volume. Consolidated sales volume grew 16.3% to 363.4 million
cases in Q1 CY2026, up from 312.4 million cases in Q1 CY2025. . India, which contributes the majority of VBL's revenues, delivered volume growth of 14.4%, a strong number for a market where VBL already commands a dominant shelf presence.

International markets performed even better, clocking 21.4% volume growth, because of recent acquisitions and expansion in Africa.

Despite an inflationary environment, Varun Beverages managed to expand margins. Gross margins improved to 55.2%, while EBITDA margins rose to 23.3%.

However, the company did see a slight decline in net realisation per case in India, which fell 1.5%. This was a deliberate strategy, as the company focused on volume growth through pack expansion and price-point offerings to attract new consumers.

VBL's International Market Performance

The company's international strategy continues to gain momentum, particularly in Africa. During the quarter, VBL, through its subsidiary The Beverages Company Proprietary Limited (BevCo), completed the acquisition of 100% of Twizza (Pty) Limited at an enterprise value of ZAR 2,053 million (post due diligence adjustments), effective March 18. Twizza is a leading beverage company in South Africa.

In addition, VBL has also entered into a share purchase agreement to acquire 100% of Crickley Dairy Proprietary Limited at an enterprise value of approximately ZAR 238 million, subject to regulatory approvals from the Competition Commission of South Africa. This dairy acquisition signals VBL's intent to broaden its African portfolio beyond beverages into adjacent categories

Varun Beverages Dividend Announcement

The board declared an interim dividend of Rs. 0.50 per share, VBL in the exchange filing mentioned.

"A final dividend of Rs. 0.50 (Fifty paise only) per equity share of the face value of Rs. 2 each for the year ended 31 December 2025, was approved by the shareholders at the Annual General Meeting held on 01 April 2026, and the same has been duly paid. In line with the guidelines of the Company's dividend policy, the Board of Directors have approved an interim dividend @ 25% of face value, i.e. Rs. 0.50 per share. Total cash outflow would be ~Rs. 1,691 million "