Quarterly Financial Results
Varun Beverages Q2 CY2026 Results: Revenue Rises 20.4%, PAT Grows 15.1% on Strong Volume Growth
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- Varun Beverages Limited reported a robust Q2 CY2026 performance with revenue increasing 20.4% YoY to ₹8,451.2 crore, EBITDA rising 17.2% YoY to ₹2,343.0 crore, and PAT growing 15.1% YoY to ₹1,525.4 crore. Growth was supported by strong volume expansion across India and international markets.
PRICE-SENSITIVE TRIGGER
Event: Varun Beverages announced its financial results for Q2 and H1 CY2026.
Type: Quarterly Financial Results
Impact: Positive
Immediate Effect: The company delivered strong double-digit revenue and profit growth, driven by healthy sales volumes, improved realizations, and continued expansion across domestic and international markets.
Metrics:
Key Financial Metrics (Q2 CY2026):
- Revenue: ₹8,451.2 crore (+20.4% YoY)
- EBITDA: ₹2,343.0 crore (+17.2% YoY)
- EBITDA Margin: 27.7% (down 76 bps YoY)
- PAT: ₹1,525.4 crore (+15.1% YoY)
- Sales Volume: 466.7 million cases (+19.8% YoY)
- Gross Margin: 55.0% (up 44 bps YoY)
H1 CY2026 Highlights:
- Revenue: ₹15,025.4 crore (+19.4% YoY)
- EBITDA: ₹3,871.9 crore (+18.7% YoY)
- PAT: ₹2,404.1 crore (+16.9% YoY)
Highlight:
- Revenue crossed ₹8,450 crore in Q2 CY2026, supported by nearly 20% volume growth and continued expansion in international markets.
What Happened ?
Varun Beverages delivered another strong quarter, driven by healthy demand across India and international markets. Consolidated sales volumes increased 19.8% YoY to 466.7 million cases, supported by 14.4% volume growth in Indiaand 38.4% growth in international territories. Revenue growth also benefited from improved realizations, while gross margins expanded despite inflationary raw material costs.
key details
Business & Operational Highlights
- Revenue increased 20.4% YoY to ₹8,451.2 crore.
- Consolidated sales volumes grew 19.8% YoY to 466.7 million cases.
- India recorded 14.4% volume growth during the quarter.
- International markets reported 38.4% volume growth, including 11.8 million cases from the Twizza acquisition in South Africa.
- Realization per case improved by 1.2% at the consolidated level.
- Gross margin improved to 55.0%, supported by a higher contribution from international operations.
- Early procurement of key raw materials and a higher mix of low-sugar and no-sugar beverages helped offset raw material inflation.
- EBITDA increased 17.2% YoY, although EBITDA margin moderated to 27.7% following the consolidation of the lower-margin Twizza business.
Note:
- The integration of the Twizza business contributed to international volume growth but also impacted consolidated EBITDA margins due to its comparatively lower profitability.
Risk Analysis
Summary:
- Despite strong revenue growth, margin expansion remains dependent on raw material costs and the successful integration of acquired international businesses.
Key Risks:
- EBITDA margin declined 76 basis points due to the lower-margin Twizza business.
- Raw material inflation could continue to pressure profitability.
- Integration of international acquisitions remains important for sustaining margins.
- Demand during peak summer seasons remains a key earnings driver.
Worst Case:
Persistent input cost inflation or slower-than-expected improvement in Twizza’s profitability could continue to pressure operating margins despite healthy revenue growth.
Risk Level: Medium
Company Commentary
Management highlighted the following during the quarter:
- Management highlighted strong revenue growth despite a challenging inflationary environment.
- Healthy volume growth across India and international markets continued to drive business performance.
- Improved gross margins reflected efficient raw material procurement and a favorable product mix.
- The company remains focused on expanding its international footprint while improving operational efficiency.
Official Exchange Filing: Varun Beverages Limited
