VBL Q3 CY26 Revenue Jumps 33.2% to ₹6,607.6 Crore; Declares ₹0.50 Interim Dividend
Varun Beverages reported Q3 CY26 revenue up 33.2% to ₹6,607.6 crore and PAT up 13.5% to ₹830.59 crore. Nine-month revenue increased 23.3% to ₹21,814.55 crore. The company completed the Twizza acquisition and incorporated a new subsidiary for alcoholic beverages. An interim dividend of ₹0.50 per share was approved.
The announcement includes robust financial performance, strategic acquisitions, diversification into new beverage categories, and a dividend payout, all of which are material to investors and have a significant impact on the company's valuation and future prospects.
The company reported strong revenue and profit growth, driven by significant volume increases in both domestic and international markets. Strategic acquisitions and new business ventures further contribute to a positive outlook.
Varun Beverages Limited (VBL) announced its financial results for the third quarter and nine months ended September 30, 2026. Revenue from operations grew by a significant 33.2% year-on-year to ₹6,607.56 crore in Q3 CY2026, up from ₹4,960.69 crore in Q3 CY2025. Consolidated sales volume increased by 28.7% to 354.4 million cases, driven by robust growth in India (22.5%) and international territories (39.9%). Consolidated beverage realization per case improved by 2.2% overall, supported by growth in high-value and premium categories, calibrated discounting, and an efficient price-pack architecture. International volumes were boosted by 15.3 million cases from the acquisition of Twizza in South Africa.
Gross margin declined by 334 basis points to 53.1% in Q3 CY2026, primarily due to higher packaging material costs and increased sales of non-beverage products. The increase in sugar prices was largely offset by a higher mix of low-sugar/no-sugar products, which constituted approximately 86% of consolidated sales volumes in 9M CY2026. EBITDA increased by 25.1% to ₹1,426.71 crore, although EBITDA margin moderated by 140 bps YoY to 21.6%. Profit After Tax (PAT) increased by 13.5% to ₹830.59 crore, driven by strong volume growth, despite higher depreciation and finance costs associated with the Twizza acquisition.
For the nine months ended September 30, 2026, revenue from operations grew 23.3% YoY to ₹21,814.55 crore. EBITDA increased by 19.9% to ₹5,274.58 crore, and PAT grew by 15.5% to ₹3,202.30 crore.
Mr. Varun Jaipuria, Executive Vice Chairman, highlighted the strong performance, noting the growth in both Indian and international markets, and the strategic importance of the Twizza merger. He also mentioned the expansion into Kenya with new brands and the exclusive distribution agreement with Mondelez in Zimbabwe. VBL has also incorporated a wholly-owned subsidiary, KIVA Spirits and Company Limited, to explore opportunities in ready-to-drink and alcoholic beverages.
Key developments include the incorporation of KIVA Spirits and Company Limited on August 29, 2026, the exclusive distribution agreement with Mondelez in Zimbabwe effective October 1, 2026, and the completion of the Twizza merger with Bevco, South Africa, effective August 1, 2026. The Board of Directors has approved an interim dividend of 25% (₹0.50 per share), with a total cash outflow of approximately ₹169.1 crore.
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