Varun Beverages Q3 CY2026 Earnings Call Transcript Released
Varun Beverages reported strong Q3 CY2026 results with revenue up 33.2% to ₹6,607.6 crore and EBITDA up 25.1% to ₹1,426.7 crore, driven by 28.7% volume growth. The company declared an interim dividend of 25% (₹0.50 per share). Management discussed growth drivers in India and Africa and diversification into RTD and alcoholic beverages.
The announcement provides a detailed update on financial performance, strategic initiatives including international expansion and diversification, and shareholder returns (dividend), all of which are material to investors.
The company reported strong year-on-year growth in revenue, volume, and EBITDA, along with a positive outlook for international markets and diversification into new categories. The declaration of an interim dividend also contributes to a positive sentiment.
Varun Beverages Limited (VBL) has released the transcript of its Investors & Analysts Conference Call held on October 30, 2026, following the declaration of its unaudited financial results for the quarter and nine months ended September 30, 2026.
During the call, the management reported a strong performance for Q3 CY2026, with consolidated sales volume revenue growing by 28.7% and a volume growth of 22.5% in India and 39.9% in international markets. Revenue from operations increased by 33.2% year-on-year to ₹66,075.6 million (₹6,607.56 crore), while EBITDA grew 25.1% to ₹14,267.1 million (₹1,426.71 crore). Higher packaging costs impacted margins, but improved realizations and operating leverage partially offset this. The company highlighted healthy volume growth in India, supported by its distribution network, expanded capacities, and investments in chilling infrastructure. International business also showed strong progress, with the merger of Twizza with BevCo completed on August 1, 2026, and the commencement of beverage operations in Kenya. VBL also entered into an exclusive distribution agreement with Mondelez in Zimbabwe and is diversifying into ready-to-drink and alcoholic beverages through KIVA Spirits and Company Limited.
The Board of Directors approved an interim dividend of 25% (₹0.50 per share), resulting in a total cash outflow of ₹1,691 million (₹169.1 crore).
Raj Gandhi, President and Whole-Time Director, provided further details on the financial performance. Revenue from operations net of excise duty and GST increased by 33.2% to ₹66,076 million (₹6,607.6 crore) in Q3 CY2026. For 9M CY2026, revenue grew by 23.3% to ₹218,146 million (₹21,814.6 crore). Consolidated net realization per case improved by 2.2% year-on-year. Gross margin moderated by 334 basis points to 53.1% due to higher packaging material costs. However, EBITDA increased by 25.1% to ₹14,267 million (₹1,426.7 crore) with an EBITDA margin of 21.6%. PAT increased by 13.5% year-on-year to ₹8,306 million (₹830.6 crore) in Q3 CY2026. For 9M CY2026, EBITDA increased by 19.9% to ₹52,746 million (₹5,274.6 crore), and PAT grew by 15.5% to ₹32,023 million (₹3,202.3 crore).
During the Q&A session, management discussed the outlook on margins, the impact of geopolitical factors on costs, and strategies to mitigate these pressures, including potential price-pack adjustments and cost reductions. They also elaborated on the growth drivers in international markets, particularly in Africa, and the expansion into new categories like RTDs and alcoholic beverages.
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