Varun Beverages Q2'26 Revenue up 20.4% to ₹8,451 Crore; Interim Dividend Declared
Varun Beverages' Q2 2026 revenue surged 20.4% YoY to ₹8,451 crore, with sales volume up 19.8%. EBITDA grew 17.2% to ₹2,343 crore, and PAT rose 15.1% to ₹1,525 crore. The company extended its PepsiCo bottling agreement to 2049, will introduce the CALPIS brand, and is acquiring a Kenyan business for USD 32 million. An interim dividend of ₹0.50 per share was approved.
The results show robust financial performance. The extension of the PepsiCo agreement, entry into new markets/categories, and acquisitions indicate significant strategic expansion, which will likely have a substantial impact on the company's future growth and market position.
The company reported strong year-on-year growth in revenue, sales volume, EBITDA, and PAT. Key strategic partnerships and acquisitions were also announced, indicating future growth potential. The declaration of an interim dividend further adds to the positive sentiment.
Varun Beverages Limited (VBL) announced its financial results for the second quarter and half year ended June 30, 2026. The company reported a strong performance with revenue from operations growing by 20.4% year-on-year to ₹84,512.3 million (₹8,451.23 crore) in Q2 2026, compared to ₹70,173.7 million (₹7,017.37 crore) in Q2 2025. Consolidated sales volume increased by 19.8% to 466.7 million cases in Q2 CY2026, driven by a 14.4% volume growth in India and a significant 38.4% growth in international territories.
The company also saw an improvement in gross margins by 44 basis points to 55.0% in Q2 CY2026. EBITDA increased by 17.2% to ₹23,430.4 million (₹2,343.04 crore) in Q2 2026 from ₹19,987.7 million (₹1,998.77 crore) in Q2 2025. Profit After Tax (PAT) rose by 15.1% to ₹15,253.6 million (₹1,525.36 crore) in Q2 CY2026 from ₹13,254.9 million (₹1,325.49 crore) in Q2 CY2025.
For the first half of 2026 (H1 2026), revenue from operations grew by 19.4% year-on-year to ₹150,254.2 million (₹15,025.42 crore). EBITDA increased by 18.7% to ₹38,719.6 million (₹3,871.96 crore), and PAT grew by 16.9% to ₹24,040.7 million (₹2,404.07 crore).
Key developments include the revision of the exclusive bottling and trademark license agreement with PepsiCo in India, extending the term to April 30, 2049, and removing the earlier restriction for VBL to operate solely as an SPV. Additionally, VBL entered a business alliance with Asahi Group Holdings to introduce the CALPIS brand in India and agreed to acquire the business of Devyani Food Industries (Kenya) Limited for USD 32 million (approximately ₹3,050 million).
In line with its dividend policy, the Board of Directors approved an interim dividend of 25% of face value, amounting to ₹0.50 per share, with a total cash outflow of approximately ₹1,691 million.
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