Varun Beverages Q1 CY26 Revenue Jumps 18.1% to ₹6,574 Cr; Acquires Twizza SA
Varun Beverages reported Q1 CY26 revenue growth of 18.1% to ₹6,574 crore, with sales volume up 16.3%. EBITDA increased 21.0% to ₹1,529 crore, and PAT grew 20.1% to ₹879 crore. The company acquired Twizza in South Africa for ZAR 2,053 million and agreed to acquire Crickley Dairy for ZAR 238 million. An interim dividend of ₹0.50 per share was approved.
The strong financial results, coupled with significant international acquisitions in South Africa, are expected to have a material impact on the company's future growth and market position.
The company reported strong year-on-year growth in revenue, EBITDA, and PAT, along with successful strategic acquisitions and dividend approval, indicating a positive financial and operational performance.
Varun Beverages Limited (VBL) announced its financial results for the first quarter ended March 31, 2026, reporting a significant year-on-year growth. Revenue from operations increased by 18.1% to ₹6,574.19 crore (₹65,741.9 million) in Q1 2026, compared to ₹5,566.94 crore (₹55,669.4 million) in Q1 2025. This growth was primarily driven by a 16.3% increase in consolidated sales volume, reaching 363.4 million cases. India contributed with a 14.4% volume growth, while international territories saw a 21.4% increase. Net realization per case improved by 1.6% at the consolidated level, aided by favorable currency movements in international markets, though it saw a marginal 1.5% decline in India due to volume growth initiatives.
Gross margins improved by 62 basis points to 55.2% in Q1 2026, supported by early stocking of raw materials despite inflationary pressures. The product mix saw an increase in low sugar/no sugar options, constituting approximately 63% of consolidated sales volumes. EBITDA rose by 21.0% to ₹1,528.93 crore (₹15,289.3 million) from ₹1,263.96 crore (₹12,639.6 million) in the prior year, with EBITDA margins improving by 55 basis points to 23.3%. Profit After Tax (PAT) grew by 20.1% to ₹878.71 crore (₹8,787.1 million) from ₹731.36 crore (₹7,313.6 million) in Q1 2025. The increase in depreciation and finance costs were attributed to new plant commissions and the acquisition of Twizza in South Africa, respectively.
Commenting on the performance, Chairman Mr. Ravi Jaipuria highlighted the strong demand, disciplined execution, and progress across markets. He noted the successful acquisition of Twizza (Pty) Limited in South Africa for ZAR 2,053 million, which became a step-down subsidiary effective March 18, 2026, aiming to enhance the company's presence in the African market. Furthermore, VBL entered into an agreement to acquire Crickley Dairy Proprietary Limited in South Africa for approximately ZAR 238 million, subject to regulatory approvals.
The Board of Directors also approved an interim dividend of 25% of face value, amounting to ₹0.50 per share, with a total cash outflow of approximately ₹169.1 crore. VBL expressed confidence in long-term opportunities driven by favorable demographics and increasing beverage consumption.
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