Varun Beverages Ltd (VBL), PepsiCo’s largest franchise bottler, reported 20.14 per cent increase in consolidated net profit to Rs 878.71 crore for March quarter 2026, helped by double-digit volume growth in India and international markets.
The company, which follows the calendar year as its financial year, had posted a net profit of Rs 731.35 crore in January-March 2025, according to a regulatory filing from Varun Beverages Ltd (VBL).
Revenue from operations was up 18.33 per cent year-on-year to Rs 6,721.53 crore in March quarter.
Varun Beverages’ sales volumes rose 16.3 percent to 363.4 million cases in Q1 CY2026, supported by 14.4 percent growth in India and 21.4 percent growth in international markets. Realisation per case improved modestly at the consolidated level, aided by better pricing in overseas markets. However, India realisations declined due to volume-led initiatives such as pack upsizing and price-point launches, the company said in a filing to the stock exchanges.
The company said gross margins improved by 62 basis points to 55.2 percent, supported by early stocking of key raw materials and a higher share of low- and no-sugar products, which accounted for around 63 percent of consolidated volumes.
On the business front, Varun Beverages completed the acquisition of South Africa-based Twizza during the quarter, strengthening its manufacturing and distribution presence in the region. It has also entered into an agreement to acquire Crickley Dairy, subject to regulatory approvals.
The board approved an interim dividend of Rs 0.50 per share of Rs 2 each, amounting to 25 percent of face value, with a total cash outflow of over Rs 169 crore.
Chairman Ravi Jaipuria said the company delivered a strong performance backed by healthy demand, execution and continued investments in capacity and distribution, and remains confident of long-term growth opportunities across its markets.
