VBL Q3 CY2026: Sales Volume Up 28.7%, Revenue Jumps 33.2% to ₹66,076 Crore
Varun Beverages Limited reported a 28.7% rise in Q3 CY2026 sales volume to 354.4 million cases and a 33.2% revenue growth to ₹66,075.6 million. EBITDA increased by 25.1% to ₹14,267.1 million, while PAT grew 13.5% to ₹8,305.9 million. Key developments include the incorporation of KIVA Spirits and an interim dividend of ₹0.50 per share.
The announcement details strong financial results, strategic business expansions (new subsidiary, international agreements, mergers), and dividend payouts, all of which are material events for investors and significantly impact the company's valuation and future prospects.
The company reported significant year-on-year growth in sales volume, revenue, EBITDA, and PAT, indicating strong operational and financial performance. Strategic initiatives like diversification into new beverage categories and international expansion further contribute to a positive outlook.
Varun Beverages Limited (VBL) announced its unaudited financial results for the quarter and nine months ended September 30, 2026. The company reported a strong performance with consolidated sales volumes growing by 28.7% to 354.4 million cases, driven by a 22.5% increase in India and a 39.9% rise in international territories.
Net revenue from operations surged by 33.2% year-on-year to ₹66,075.6 million (₹6,607.56 crore) in Q3 CY2026. Revenue from non-beverage sales saw a significant increase of 72.4% to ₹3,343.5 million. Realization per case for beverages improved by 2.2% at the consolidated level, supported by growth in higher-value categories like dairy beverages and premium offerings, alongside calibrated discounting and an efficient price-pack architecture.
Consolidated EBITDA grew by 25.1% to ₹14,267.1 million (₹1,426.71 crore). However, EBITDA margins declined by 140 basis points to 21.6% due to a 334 bps contraction in gross margins, primarily attributed to higher packaging costs and increased sales of non-beverage products. Despite supply chain disruptions, EBITDA margins in India were maintained year-on-year for the nine-month period.
Profit After Tax (PAT) increased by 13.5% to ₹8,305.9 million (₹830.59 crore) in Q3 CY2026, driven by robust volume growth. Depreciation and finance costs increased due to the acquisition of Twizza in South Africa and associated debt funding.
Key developments during the quarter include the incorporation of a wholly-owned subsidiary, KIVA Spirits and Company Limited, to explore opportunities in ready-to-drink and alcoholic beverages. The merger of Twizza with Bevco in South Africa was completed effective August 1, 2026. Additionally, VBL entered into an exclusive distribution agreement with Mondelez in Zimbabwe, effective October 1, 2026. The Board of Directors approved an interim dividend of 25% of the face value, amounting to ₹0.50 per share, with a total cash outflow of approximately ₹1,691 million.
The company also highlighted its sustainability initiatives, aiming to be water positive and reduce its carbon footprint. VBL is increasing its use of renewable energy and recycled PET (rPET) packaging, targeting 100% rPET mix by 2030. A conference call for the Q3 & 9M CY2026 results is scheduled for October 30, 2026, at 2:00 PM IST.
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