Varun Beverages Limited (BSE: 540180; NSE: VBL) reported a 33.2% year-on-year increase in revenue from operations to ₹66,075.6 million in the third quarter of calendar year 2026, compared with ₹49,606.9 million in the corresponding quarter of 2025. Consolidated sales volume rose 28.7% to 354.4 million cases from 275.3 million cases.
Volume growth stood at 22.5% in India and 39.9% in international markets. International sales included 15.3 million cases contributed by the acquisition of South African beverage company Twizza. Beverage realisation per case improved 2.2% at the consolidated level, supported by a better product mix and pricing in India and improved realisation in South Africa.
EBITDA increased 25.1% to ₹14,267.1 million from ₹11,404.1 million a year earlier. EBITDA margin, however, declined 140 basis points to 21.6%, mainly due to higher packaging costs and a change in product mix. Gross margin fell 334 basis points to 53.1%, with higher prices of preforms, shrink films, closures and cans adding to costs.
Net profit rose 13.5% to ₹8,305.9 million from ₹7,315.1 million. Depreciation and finance costs increased by 34.5% and 53.5%, respectively, mainly due to the Twizza acquisition and related debt funding. For the nine months ended September 30, 2026, revenue grew 23.3% to ₹218,145.5 million. EBITDA increased 19.9% to ₹52,745.8 million, while profit after tax rose 15.5% to ₹32,023 million.
Commenting on the results, Varun Jaipuria, Executive Vice Chairman of Varun Beverages, said the company recorded volume growth across India and international markets. He attributed the performance to its distribution network, manufacturing capacity and investments in chilling infrastructure. He also cited improved realisation from higher-value products and the launch of premium offerings such as Ad Rush and Evervess mixers.
The company has completed the merger of Twizza with BevCo, effective August 1, 2026, and expects operational synergies in the coming quarters. It also began beverage operations in Kenya and launched BOLT UP and XTREME FIZZ in the market. In Zimbabwe, it entered an exclusive distribution agreement with Mondelez.
VBL has also incorporated KIVA Spirits and Company Limited to explore opportunities in ready-to-drink beverages, alcoholic beverages and related products. The board approved an interim dividend of ₹0.50 per share, equivalent to 25% of the face value, involving a total cash outflow of approximately ₹1,691 million.
Varun Beverages is one of PepsiCo’s largest franchise bottlers outside the United States. It manufactures and distributes carbonated and non-carbonated beverages across India and several international markets, including Nepal, Sri Lanka and countries in Africa. Its portfolio includes Pepsi, Mountain Dew, Sting, Mirinda, Slice, Tropicana, Gatorade and Aquafina.
