Varun Beverages Ltd (NSE: VBL) Q3 2026 Earnings Call dated Feb. 03, 2026
Corporate Participants:
Ravi Kant Jaipuria — Chairman
Raj Pal Gandhi — Whole-time Director
Varun Jaipuria — Promoter and Executive Vice Chairman
Analysts:
Anoop Poojari — Client Manager
Abneesh Roy — Analyst
Devanshu Bansal — Analyst
Percy Panthaki — Analyst
Latika Chopra — Analyst
Jai Doshi — Analyst
Harit Kapoor — Analyst
Rehan Saiyyed — Analyst
Yash Sonthaliya — Analyst
Rajit Aggarwal — Analyst
Omkar Godbole — Analyst
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to Varun Beverages Limited’s Earnings Conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.
I hand the conference over to Mr. Anoop Poojari from CDR India. Thank you and over to you Mr. Poojari.
Anoop Poojari — Client Manager
Thank you. Good afternoon, everyone and thank you for joining us on Varun Beverages Q4 and CY 2025 earnings conference call. We have with us Mr. Ravi Jaipuria, Chairman of the company, Mr. Varun Jaipuria, Executive Vice Chairman and Whole-time Director, and Mr. Raj Gandhi, President and Whole-time Director of the Company. We initiate the call with opening remarks from the management following which we’ll have the forum open for a question-and-answer session. Before we begin, I would like to point out that some statements made in today’s call may be forward looking in nature and a disclaimer to this effect has been included in the results presentation shared with you earlier.
I would now request Mr. Ravi Jaipuria to make his opening remarks.
Ravi Kant Jaipuria — Chairman
Good afternoon, everyone and thank you for joining us on our earnings conference call. I hope you had a chance to review our results presentation for the fourth quarter and year ended 31 December 2025. CY 2025 was marked by steady execution despite weather related disruptions in India during the peak summer season. For the full year, consolidated volumes grew by 7.9%, driving revenue growth of 8.4% and EBITDA growth of 7.2% while PAT increased by 16.2% to INR30,620.4 million, reflecting the resilience of our business model and the strength of our on-ground execution.
Volume growth in India was impacted during parts of the year due to unprecedented heavy rainfall throughout the year. However, performance improved marginally meaningfully in quarter four with domestic volume growing up by 10.5% reflecting the strength of our wide distribution network and strong brand portfolio. The greenfield plant and backward integration facilities commissioned during the year are progressively stabilizing and are expected to support higher volumes and operating leverage in the upcoming season.
Our international operations continue to scale well led by Africa. International volume grown by 10% in quarter four with South Africa delivering healthy volume growth supported by expansion in general trade reach, addition to visi-coolers and continued progress on backward integration and capacity enhancement strengthening supply chain efficiency and cost competitiveness.
During the year, we announced the proposed acquisition of Twizza in South Africa subject to regulatory and other approvals. The company has three manufacturing facilities including backward integration, which will significantly enhance our manufacturing footprint and route to market capabilities in Africa’s largest soft drink market while offering meaningful synergies with our existing operations.
We also continued to expand our product portfolio and categories. The snacks business in Morocco has ramped up well. Distribution of snacks in Zimbabwe and Zambia is gaining traction. Our balance sheet remains strong supported by healthy cash flows providing flexibility to support organic expansion, invest in cold chain and distribution infrastructure and pursue value accretive strategic opportunities in line with our commitment to delivering value to our shareholders. The Board has recommended a final dividend of rupees INR0.50 per equity share subject to shareholders approval.
Looking forward, we remain confident in the long-term growth potential across India and our international markets supported by favorable demographics and rising incomes and backward by adequate capacities. A diversified portfolio and a strong distribution network, we believe we are well positioned to deliver sustained and profitable growth and create long term value for all stakeholders.
I would now like to invite Mr. Gandhi to share the key highlights of our operational and financial performance. Thank you.
Raj Pal Gandhi — Whole-time Director
Thank you, Mr. Chairman. Good afternoon and a warm welcome to everyone joining us today. Let me provide an overview of the financial performance for the fourth quarter and the year ended 31 December 2025. Revenue from operations adjusted for excise and GST increased by 8.4% to the level of INR216,853 million in CY 2025. In line with steady volume growth, consolidated sales volumes grew by 7.9% to a level of 1,213 million cases as compared to 1,124 million cases in the CY 2024.
In Q4 CY 2025, consolidated sales volumes increased by 10.2% to 237.1 million cases from 215.1 million cases in Q4 CY 2024. The growth was supported by healthy performance across both India and international markets with India volumes growing by 10.5% and international volumes by 10% during the quarter. For the full year, CSD contributed 73.9%, non-carbonated beverages 5.9% and packaged drinking water 20.2% to the total consolidated sales volume.
In CY 2025, the mix of low sugar and no sugar products increased to the level of approximately 59% of consolidated volumes reflecting our continuous focus on healthier beverage offerings. Net realization purchase improved by 3.4% in Q4 CY 2025 to INR177.3 driven by improved realization in international territories. For CY 2025, net realization per case increased marginally by half percent to INR178.8.
Our gross margin for the full year remained largely stable at 55.2% compared to 55.5% in the previous year. EBITDA for CY 2025 increased by 7.2% to the level of INR50,493.7 million with EBITDA margins at 23.3% as against 23.5% in CY 2024. During the quarter, the Government of India notified the four labor codes consolidating the existing labor laws resulting in an incremental cost impact of INR14 crores roughly which has been recognized under employee benefits expense. This impact was absorbed within our overall operating performance. In Q5 2025, EBITDA increased by 10.2% to the level of INR6,329 million reflecting improved operating leverage as volumes recovered.
Profit after tax for CY 2025 grew by 16.5% to the level of INR30,692.5 million from the earlier level of INR26,342.8 million in CY 2024. This is driven by volume growth, low finance cost and higher other income including interest from deposits in India and favorable currency momentum in international operations. PAT for Q4 CY 2025 increased by 36.6% to the level of INR2,672 million. Depreciation increased by 28.4% during the year primarily on account of commissioning of new greenfield plants in India and brownfield expansion in international territories. Following repayment of debt from QIP proceeds, finance cost in India remains negligible.
In international markets finance cost is primarily attributable to South Africa, including fair value adjustments of leases under Ind AS 116. During CY 2025, we capitalized new capex of approximately INR45,000 million, of which approximately INR16,500 million was incurred in CY 2024. This primarily included capex of around INR17,000 million towards setting up four greenfield production facilities in India at Prayagraj in UP, Buxar in Bihar, Damtal in Himachal Pradesh, and Mendipathar in Meghalaya. We also incurred approximately INR3,000 million towards brownfield expansion in Sri City and Gorakhpur in India.
In international markets, capex of about INR13,000 million was incurred which included commissioning of a PET line and backward integration facilities in DRC, setting up of snack manufacturing facilities in Morocco and Zimbabwe and installation of new can line in South Africa. The balance capex comprised investment in visi-coolers, glass bottles, pallets, vehicles, write-offs, and impact of foreign exchange fluctuations.
As on December 31st, 2025, capital work in progress and capital advances to that the approximate level of INR5,500 million largely pertaining to ongoing phase-wise expansion projects and support infrastructure across domestic and international operations for 2026 or 2027 seasons. As on 31 December 2025, the India business continued to remain net debt free with free cash of approximately INR12,250 million. At the consolidated level, net debt stood at a very negligible level of INR256 million at the year end. During the year, CRISIL upgraded the company’s long term credit rating to AAA stable, reflecting the strength of our balance sheet and cash flow profile.
Looking ahead, with the stabilization of newly commissioned capacities, expanding backward integration, strengthening distribution and cold chain infrastructure and a diversified product portfolio across beverages and snacks, we remain well positioned to drive sustainable growth, improved operating leverage, and delivers consistent performance across domestic and international markets.
On that note, I come to an end of our opening remarks and would like to now ask the moderator to open the forum for any questions or suggestions that you may have. Thank you.
Questions and Answers:
Operator
Thank you very much. We’ll now begin with the question-and-answer session. [Operator Instructions] The first question is from the line of Abneesh Roy from Nuvama Wealth Management. Please go ahead.
Abneesh Roy
Yeah, thanks. My first question is on the India business. If I see India volumes has grown double digit 10.5% but India sales has grown around 6% so there’s a gap of 4.5%. If you could explain how was the mix? I do understand the CSD, water and all that but within those segments how was the mix? And second, what will be the outlook second in March quarter on this? Do you still expect the pricing mix to be slightly negative? Because I do see gross margin also being slightly down by around 30, 40 bps. So that’s my first question. Thanks.
Raj Pal Gandhi
Hi, good afternoon, Abneesh. Abneesh, the margin of 4% lower is because the mix doesn’t change that much. We — for us very important is when the season was bad, year was bad, and everybody due to competitive scenario was — the competitive scenario, everyone was trying to discount the product. Instead of that, we focused on the market. We upgraded few of our — these packs and maintained not only now and for all times our past 30 years history of volume growth which is paramount for us 3%, 4% in the off season, in an otherwise weak quarter, is not that important. And in a busy season you will see that such type of increase will offset — increased volume will offset any cost.
Ravi Kant Jaipuria
If you look at it overall, we’ve always said each quarter cannot be looked at. And if you look at the full year with the worst season this year coming in ’25 with the rains and the highest competition coming, if you look at it, we have still gained in overall margins with a 2% sales volume growth. We have still our EBITDA margins have not gone down, rather gone up. So, we have always said that this is high EBITDA margins. We’ve always maintained 21%, 22% margins, but we are still doing much better than that. And we believe going forward also with the hopefully this season opening up, there should be much better margins and much better growth coming this year. I mean temporarily each quarter cannot be the reflecting point.
Abneesh Roy
Understood. So that was my next question. You said the season seems to be opening up and last calendar year we did see most of the summer categories see very unfavorable climate which could course correct this year. So, any initial expectation, how do you see this quarter and next quarter given base is a bit favorable. I do understand the second quarter of the calendar year the 15% growth is there, but that was on a very soft base. So next two quarters you have a very soft base. Any comments on how you see demand?
Ravi Kant Jaipuria
But the first quarter was a decent base last year also. So, we grew at 17%, 18% last year. So, first quarter the base was not soft. Yes, the second and third quarter last year were very soft, which are our main quarters. So that’s where. But what I’m saying is even after having a very soft two quarters and our volume only growing 2%, we have maintained our EBITDA and margins have gone up. And even after adding four new plants which have added to our cost considerably, we have made sure that we have maintained our margins. So hopefully with a little favorable weather, we only see much better projections this year and not weaker.
Abneesh Roy
So thanks. That’s all from my side. Thank you.
Operator
Thank you. Next question is from the line of Devanshu Bansal from Emkay Global. Please go ahead
Devanshu Bansal
Hi sir. Thanks for the opportunity and congratulations for a good volume growth pickup. Sir, as you mentioned in quarters with low seasonal variations, our volume growth has returned to 10% which was visible in both Q1 and Q4. Now that the base is comfortable as the peak season was impacted. Just checking, would mid-teen kind of volume growth in CY26 be a tall ask or this is an achievable number if the season sort of remains as per the normal trends.
Ravi Kant Jaipuria
Well, we’ve always said double-digit growth in India is not looking impossible and we still stick to that and I think there’s no reason why this year we should not get that. Unfortunately, we’ve never had rains like we’ve had in the last year. So, if reasonable weather is there, there’s no reason why we should not have the double-digit growth which we are anticipating.
Devanshu Bansal
Yes sir. Sir, double digit you have maintained in normal years. So, since the base was only 1, 2% growth. So that’s the reason I was checking. Can we improve the outlook towards mid-teen or we will still like to maintain that double-digit comment?
Ravi Kant Jaipuria
We would like to maintain that but you can pray to the weather gods and hopefully we’ll do better.
Devanshu Bansal
Sure sir, sure. Secondly, we always used to provide some data around our distribution expansion in the Q4 PPT but this time around the data is not available. So, if you could throw some light as in where our distribution network currently stands at and how many visi-coolers we have placed for the year.
Ravi Kant Jaipuria
Well, we feel that we are compatible to the industry and we are providing as much or more than what the industry requires. And the figures, we don’t feel it is necessary to be given every time. So, we have not given this time.
Devanshu Bansal
Sure, but the expansion would have happened, right?
Ravi Kant Jaipuria
It just needs to be unfortunately gives information to our competition, which we would not like to give. And we’ve been expanding and we are doing what is required for the market and we have been putting the visi-coolers and expanding our routes as per required in the market.
Devanshu Bansal
That’s fair. That’s fair, Mr. Jaipuria. Last question. Wanted to understand the revenue contribution from snacks in CY25 and because we have recently commissioned a plant in Zimbabwe as well. So, what is the run rate that we are foreseeing for this business in CY26?
Ravi Kant Jaipuria
So, the snack food revenue has been INR340 crores for the year 2025. So, I think 2026 we’ll have a much better realization of that because Morocco only started May June and by the time it really got commissioned and ramped up was already the fourth quarter and Zimbabwe actually has just started in December. So, I think this Zimbabwe will have a full year this year. So, we expect much better and much higher volumes in ’26.
Devanshu Bansal
Sure. So just a small bookkeeping question. So, whatever the volumes that we report for our international business this does not have any contribution of snacks, right? So, I just wanted to check as in from a bookkeeping modeling perspective how should we…
Ravi Kant Jaipuria
It has snacks volume also in it — value.
Devanshu Bansal
Okay. Excluding that if you could give us some perspective as in, like for like, what is the volume for beverages — international beverages in CY25?
Ravi Kant Jaipuria
It will make a very small difference because the total volume is INR300 crores-odd in value. So, it will be very small. It will be — it doesn’t — in volume, it will not really make any.
Devanshu Bansal
Sure, sir. Sure, sure. Sure. Thanks for taking my question.
Operator
Thank you. Next question is from line of Percy Panthaky from IIFL Securities. Please go ahead.
Percy Panthaki
Hi sir, just trying to get some idea on your India margins. So CY25 we have reported a all-time high India EBITDA margin or rather standalone EBITDA margin of close to 26%. Now going ahead into CY26 there are a couple of opposing forces. One is the volume value gap which might to some extent continue in CY26 as well which will put some downward pressure on the margins. On the other hand, you will have higher sort of volume growth which will generate some amount of operating leverage. So how do you see these two forces interacting? Will it be a net positive, net negative, and how do you see margins for next year? I know you have been earlier stating that India margins are quite healthy, and we can maintain 22%, 23%. But now we are at ’26 and frankly no one takes that 22%, 23% number seriously. So, if you can give some realistic sort of guidance for CY26 it will be very helpful. Thank you.
Ravi Kant Jaipuria
Realistically if we can maintain anywhere close to this, I think we should be very happy. These are actually much better than any normal numbers in soft drink industry. So, we will be very happy if we can maintain anywhere close to these numbers. But our guidance has always been 22%, 23% has never been higher than that and I still hope we can — with the volumes coming this year, we should be able to maintain margins somewhere close to this.
Percy Panthaki
Very, very helpful sir. And yes, I must commend you for the great work you have done in terms of bringing up the India margins. Second question is on the international business. Can you give some kind of idea on I mean the foods business while this year is whatever INR250 crore, INR300 crore kind of a number. How do we build in growth here? I mean if you can’t give an exact guidance here, at least help us think about how to approach this topic in terms of either market sizes, market shares, or capacities or any other way as to how to think about this where this INR200 crore or — INR250 crore or INR300 crore, where can this number be over a two- to three-year period?
Ravi Kant Jaipuria
Well, I think first of all it’s a bit too early because there’s only one market where we have been, we’ve had at least six months of manufacturing. The other one is only maybe two weeks. So, it’s too early to really say although we have been in the market distributing, but producing and distributing is two different scenarios. So, I think give us a couple of quarters to really give you the right feedback. But on a general tone, I think there is the markets are large enough and we expect at least high teens or even higher than that growth coming.
But on a number, couple of years I think for this to go to close to $100 million is not an unforeseen number. So — but that’s what can happen with two or these three territories, I mean, but that’s what it looks like. But give us little more time to understand the market better, but growth will be very high and good.
Percy Panthaki
Got it, sir. Very helpful. Thank you and all the best.
Ravi Kant Jaipuria
Thank you.
Operator
Thank you. Next question is from line of Latika Chopra from J.P. Morgan. Please go ahead.
Latika Chopra
Yeah, hi, thank you for the opportunity. The first question, just wanted to bring the focus back on realization for India business. And the purpose was in the last few months we did see upsizing of your INR20 pack, right from 250 milliliters to 400. And I think this is — assuming this going to this will continue going into the season, do you think this volume value gap will sustain or it could even worsen from here? And the second bit I wanted to understand was any thoughts on would you like to play the INR10 price point more aggressively in the coming season?
Ravi Kant Jaipuria
So first of all, this upsizing had started in the season itself. The main effect of our marginal differences because of the seasonality and because of the low growth, volume growth and our expenses have gone up because of four new plants coming up by the end of the season this year in ’25. And we have not been able to get any benefit out of those plants which we believe we will start getting this year. And we expect volume growth to be reasonably healthy. And because of that we don’t see any marginal dilution. And even though the upsizing has happened and because of that we expect the volumes to be much higher and that will cover up our marginal issue. We are quite bullish on this year because after having going through such a nasty year, which was really the worst year we have seen in the last few years in our industry.
Latika Chopra
Sure. My question was actually sort of more on realization. So maybe your value growth continues to lag, volume growth. And that’s what I was trying to understand better. EBITDA margin, I take your point.
Ravi Kant Jaipuria
Yeah, I think it’s been a mix of things, right? Especially if you look at quarter four, it’s not only because of upsizing. Quarter four, usually after the year people have had, the discounting in the market has been much higher. I mean, it’s funny that when the volumes don’t come in, people end up discounting and throwing the kitchen sink, right? And there’s been a lot of capacity which has been added.
Now going forward, looking at this year as well, what we are seeing at least is that the discounting isn’t as rampant compared to what it was because there are lot of stock buildup which happens in the stock. If it doesn’t get liquidated, then people of course put discounts on it. So, there’s been an impact in quarter four that as well. And balance, I mean, yes, we have upside. So, I mean, we are hoping that the volume growth come in for next year and the revenue margins at least on an absolute basis we’re able to cover up and grow faster. Now how the market reacts and what further pricing happens, that I can’t probably answer right now. So that’s the first part.
The second part of the INR10 portfolio, we have launched it in some places, which is West Bengal and Northeast. So, we’ll be very, very surgical with it. We’re not planning to make it a Pan India launch. Wherever we really necessarily need to launch it, we’re going to do that. So, we’re still in early phases right now. We’ve just launched about 15 days back and we’re waiting to see as the season opens up, how it ends up doing.
Latika Chopra
That’s very clear and thank you for that. The second question I had was if you could, if you could share or give some color on broader capex plans for CY26 and share how would it look for both India and overseas business? Thank you.
Ravi Kant Jaipuria
I think India business, we are not looking for any major capex this year. We are not putting any plants. We have enough capacity so there will be very low capex in India. Internationally, there will be capex mainly in South Africa but not that large. I think only one brownfield capacity is coming up in South Africa, and it won’t be very large. So, I don’t think there’ll be major capex this year.
Latika Chopra
Thank you so much, sir.
Varun Jaipuria
Except the acquisition of Twizza which we have already announced.
Latika Chopra
Understood, thank you so much.
Raj Pal Gandhi
And Latika, just to add what Chairman has said. The South Africa is going to be a star territory and to totally avail benefit of that and the branding and the market opportunity, the first which is already created, we are going to add 70%, 80% capacity by the inorganic debt acquisition of Twizza which on the 21st of December we have already announced. So, their total organic, inorganic we should see the growth something like maybe 80% or higher.
Latika Chopra
Understood. Thank you. Thank you for this.
Raj Pal Gandhi
Thank you.
Operator
Thank you very much. Next question is from the line of Jai Doshi from Kotak. Please go ahead.
Jai Doshi
Hi, thanks for the opportunity. Just a small follow-up on the response that you just gave. So, in terms of pack upgrades, 250 to 400 ml, is it largely done? I mean should we assume that for December quarter for the entire portfolio, wherever you have plans to increase pack size, that full impact is visible in the realization of December quarter? And will there be more during the course of this year? So that is one.
And second is, I gather that you’ve also sort of selectively launched INR10 price point pack. Any sense you can give us what are your plans for the next year and will it by any chance be more than 5% of your portfolio in terms of overall volumes or will it be consciously restricted to below 5%? That’s it from my side. Thank you.
Ravi Kant Jaipuria
So, all the upsizing has been practically done in the quarter. And as far as your INR10 price point, it will be surgical as my son said and won’t be more than 5%, 7% of our portfolio.
Jai Doshi
Thank you very much.
Operator
Thank you. Next question is from Harit Kapoor from Investec. Please go ahead.
Harit Kapoor
Hi, good afternoon. So just two questions. One was on international. Any sense you could give us of what like constant currency kind of growth would be because you’re seeing just a 10% growth in volume but optically looks like a 20%-plus growth there on the revenue side. So — and given what’s happened with currency, some sense on how — what would have been the currency impact this quarter and how we should — I know it’s hard to say, but how can we see it going forward? That’s my first question.
Ravi Kant Jaipuria
First of all, the main currency advantages, what would come starting from next year? Because in Africa we normally carry three to four months or even sometimes higher than that stocks, so those stocks were already paid for at a much higher price which were bought when the currency was not at that peak. So, I think the real currency benefits in operational and cost of operations will start showing from this year onwards. What was the other question, sorry?
Harit Kapoor
Yeah, the second one was on India business. So, you spoke about the SKU and pack changes, but I just wanted to understand about going into the summer. Are there plans in terms of product innovation as well? Some white spaces that you do probably would not have filled up, etc. Anything to look forward to in the next two months as you go into the summer. Should that also be something we should be watching for? That’s my second question.
Ravi Kant Jaipuria
Absolutely.
Varun Jaipuria
No, I think definitely we’re quite clear on our strategy. The advantage product portfolio, differentiated product portfolio, what we have today which is working well for us, is of course energy. So, there will be newer launches in flavors and energy as a category, and you are aware we’ve launched the mid pricing energy which is Ad Rush that’s only been launched a few months back. Given that it was off season, we will expand it now and of course with PepsiCo work on a very strong customer engagement plan as well, including some ATL money which will be spent. So, energy, you will see some innovations happening.
At the same time, the Jeera space has been very exciting and of course we’ve been getting a lot of questions that, are we doing something with Jeera? So, about March, we will be launching our Nimbooz Jeera range as well. That’s the second thing what we’re launching in a big way. And under Nimbooz, which is obviously growing very, very fast for us and doing phenomenally well, we will be launching more flavors and price points in that. So, there is a lot of exciting stuff which is going to be there in the season.
Harit Kapoor
Great to hear. And the last one was on distribution. So, while you can’t give exact data, but is it fair to understand that CY25 is a year where distribution expansion may not have been very sharp as you are obviously dealing with a one-off season and it could be stronger going into CY26? Is that a correct assumption to be made or that CY25 was also okay?
Ravi Kant Jaipuria
No, CY25 was good. Seeing what happens is that since a large part of your business is still driven through rural markets, those retailers don’t end up buying. So even though you end up creating distribution and creating distributors and creating logistics and infrastructure, the buying pattern doesn’t really build up because in rural people don’t end up buying. So, it’s not that you’ve not increased your reach to those outlets, it’s just that the throughput from those outlets what you expected hasn’t come. So, there’s been a distribution expansion. And for ’26 as well, we have gone through the entire exercise of further adding because we believe it’s going to be a great season this year. So, you will start seeing the offtake in the impact as the season picks up.
Harit Kapoor
Excellent. Wish you all the best. Thank you.
Ravi Kant Jaipuria
Thank you.
Operator
Thank you. Next question is from the line of Rehan Saiyyed from Trinetra Asset Managers. Please go ahead.
Rehan Saiyyed
Yeah, good afternoon to the team and thanks for giving me the opportunity. I want an understanding regarding your alcoholic…
Ravi Kant Jaipuria
Sorry, it’s not clear. Can you just repeat yourself?
Rehan Saiyyed
Yeah, am I clear now?
Ravi Kant Jaipuria
Yeah, slightly better. Thank you.
Rehan Saiyyed
Yeah. Okay, so I want a bit understanding regarding your alcoholic beverage MOA. So, you have mentioned that alcoholic beverages in the MOA and the culturable distribution agreement is the African markets. So sir, how should we think about capital allocation management focus between the core non-alcoholic portfolio and these categories over the last few years?
Ravi Kant Jaipuria
Well, we are starting with Carlsberg in Africa, but it won’t be — the capital allocation will not be so large. We will be starting with one plant this year so the overall capital allocation will be not so large comparative to the overall and we don’t have with much capex this year anyway.
Rehan Saiyyed
And second around just one clarification that employee benefit expense 22%…
Ravi Kant Jaipuria
Not able to hear you. We can’t hear you properly at all.
Rehan Saiyyed
Am I clear now?
Ravi Kant Jaipuria
Yeah, yeah. Better.
Rehan Saiyyed
Yeah. So, I want to understand regarding your employee benefit expense, which is grew by 22% YoY in quarter four, significantly ahead of the revenue growth of 14%. So, I want to understand how much of this increase is attributable to new plant staffing and international scale up versus wage inflation and how should we model employee cost has a higher percentage experience going forward.
Raj Pal Gandhi
See, this is although single digit 89% employee cost which was incurred for these four plants last year while we could not make use of the same. And apart from that, two more things which you mentioned. One, the labor code which has been implemented past cost of that also has been absorbed in this quarter. Secondly, we had a senior team — the not exactly senior top means to a different.
Varun Jaipuria
We had a VBL 30-year completion celebration and there’s a certain cost built in only for this quarter for that event which is a onetime cost which has been built in. Hence, you’re seeing the increase in the employee cost.
Raj Pal Gandhi
Which is only one-time.
Rehan Saiyyed
Thank you for clarification.
Operator
Thank you. Next question is from line of Yash Sonthaliya from Edelweiss. Please go ahead.
Yash Sonthaliya
Hi team, thank you for taking my questions. So, my question is regarding to better understand what is the cost impact with upsizing of our INR20 pack and what will be the cost impact if the revenue mix or the volume mix of increases to 5% of our sales?
Raj Pal Gandhi
Yes, the first of all, 250 to 400, the mix of 250 in the base itself is not more than 10%, 12%. So even if we have to do the 100%, it’s going to be 1/10th of the incremental cost. And on the INR10 pack, what Varun stated is going to be something which is going to be surgical. However, there are this thing is because it’s a juice based or star performer Nimbooz, it’s going to be 5% juice which will entitle us to a duty instead of 40% to 5%. So, it’s not going to be that impactful which others may may have. And third is it’s going to be healthier product with sugar free.
So, we have all the levers with the experience of this industry. I mean whatever we’ll be doing will be absolutely profitable. That — and having said the focus is going to be a volume growth like in the past with maintaining the bottom line. However, a little bit here and there can always happen, but broadly is to sail through the way we had been doing in last 30, 40 years.
Yash Sonthaliya
Understood. Understood sir. But just for general understanding, like on the 10% portfolio also increasing our upscaling from 250 to 400 has 10%, 20% impact on profitability on that part of portfolio. Or my understanding is wrong?
Raj Pal Gandhi
One, it gives the volume increase and operating leverage. Second, see what happens is there are a lot of costs which are variable. The GST, which is 40% is variable based upon the selling price. My concentrated price is variable. Then my preparedness on the zero sugar or low sugar is much bigger than others so it’s going to be lesser than 10%.
Ravi Kant Jaipuria
And also, the discounting varies so it’s not that bigger impact technically.
Yash Sonthaliya
Got it, Got it. Thank you. Thank you for taking the question.
Operator
Thank you. Next question is from the line of Rajit Aggarwal on Nilgiri Investment Managers. Please go ahead.
Rajit Aggarwal
My question is related to the international margins. If you can share the EBITDA margin of Twizza will be helpful. And also, that the June quarter and September quarter the EBITDA margins declined in the international or ex India operations. This quarter has been somewhat stable. So how do you see that panning out in the next one year or so and with the increasing contribution of international ops, the consolidated margins will go down? I mean, or do you still see that the impact not being so much? If you can just help me understand the movement in margins.
Raj Pal Gandhi
First of all, Twizza is to be consummated after the Competition Commission approval. Second, in South Africa our struggle is more on the capacity side. And once we get the capacity margins, you can take what we are doing today in South Africa same we will have from three additional locations. So, it will help me one, the freight inward and freight outward because I will be near the market. Secondly, in Twizza the land and building are owned by Twizza as against in BevCo, as we have stated in the past, land building are on rent.
And third, the — this company has got own vehicles as against BevCo we didn’t have next Twizza plants are enabled or equipped with the solar energy power which BevCo plants were not there. So, margins there. What you can do is as a guidance for will be even it will be margin accretive for BevCo capacity in accretive and freight reducing because we’ll be nearer the market instead of five, we’ll be reaching the market from eight different locations. And with the batch size and other things going up, the economies of scale will start accruing to us. Then we will become little, larger player in that market.
Rajit Aggarwal
So, sir, overall international margins will still be at similar levels of 16%, 16.5% or we can expect them to range towards more towards the Indian margins?
Raj Pal Gandhi
Towards Indian margin. Ultimately it has to go because backward integration and other initiatives which we are doing should contribute towards that, yes.
Rajit Aggarwal
So that’ll be more like a four- to five-year kind of a horizon or it can be sooner as well?
Ravi Kant Jaipuria
It will be sooner, but not four or five years. But not — everything will not take effect immediately. So, I would say in the next couple of years.
Rajit Aggarwal
Right, sir, thank you. And a quick clarification on the taxes. The taxes of ex India operations seem to have gone up in this quarter. Can you just help me understand that? It’s — so if you have a PBT of — ex India PBT around INR17 crore, the taxes are similar. So how does that work?
Raj Pal Gandhi
Your question is ex India has gone up. If that is the question, then yes, because of Zimbabwe has come in the tax bracket. Earlier, we were availing the tax break.
Rajit Aggarwal
Right. So, your — I think your PBT is around INR17 crores, if I’m right, in Q4 and similar amount of the taxes. So, is this going to be similar trajectory or is it going to be a certain percentage of PBT going forward? I mean, simple. If the consolidated PAT is — sorry, go ahead please.
Raj Pal Gandhi
Yeah, here what happens is there is some country may have a lesser this saying profit and some may have the — one country to another set of is not available. So, the slight mismatch is always quite likely. But overall percentage is in international is lower than that of India.
Rajit Aggarwal
Okay. All right. Thank you, sir.
Raj Pal Gandhi
Thank you.
Operator
Thank you. Next question is from line of Omkar from Shree Investments. Please go ahead.
Omkar Godbole
Yeah, my question is you have added alcoholic beverages as a category. So can you talk bit more about that when you want to enter like what products and when we can start?
Ravi Kant Jaipuria
We have just said that we are starting with Carlsberg in Africa. We are putting our first greenfield plant starting this year which would hopefully will be ready by the end of next year.
Omkar Godbole
Okay, so this is strictly for out of India, right? This is not for India?
Ravi Kant Jaipuria
For the time being, it’s specifically we are starting Carlsberg and we are still looking for other things. But at the moment, it’s Carlsberg for Africa.
Omkar Godbole
Okay, what was the capacity utilization this quarter with the added capacity.
Raj Pal Gandhi
You are talking about non-alcoholic or?
Omkar Godbole
Yeah, yeah, non-alcoholic.
Ravi Kant Jaipuria
No, no, quarter last quarter has no capacity issues. Our capacities are based for the second quarter of the year, and we have adequate capacity available. I would say we have 50% more capacity available than what we have done this year.
Omkar Godbole
So from last year Q2 this year Q2, how much capacity you have added.
Raj Pal Gandhi
It’s a 20-plus-percentage capacity is added in this year which could not be used. And last year also we have added the capacity. So, we have…
Ravi Kant Jaipuria
Between the last two years we have added close to 40%, 45% capacity. So that capacity is available for us.
Omkar Godbole
And that should be hopefully used in the Q2 of current next financial year, right?
Ravi Kant Jaipuria
I hope so. It won’t be that much. There is enough capacity available if need be.
Omkar Godbole
With the cash on the books, you are sitting at and no major capex coming in, as you have said. And you haven’t even increased the dividend payout. So, like what’s the strategy on that? How do you plan to use the cash then?
Ravi Kant Jaipuria
Partly we have just acquired a company in Africa which will be paid for and there will be some. We are putting a brewery also in Africa and balance we have to see, we want to wait and see the season, how it goes in case the volumes become larger. Then we have to — and we have to always keep on looking at expansion. In certain territories, even though overall volume doesn’t grow to that level, certain territories grow faster, then we have to increase the capacity in those territories. And if everything goes well, maybe we will increase the dividend.
Omkar Godbole
Okay, so you are sticking to the double-digit growth target for the current year as well?
Ravi Kant Jaipuria
For the time being, that’s what we are saying. Because till the weather opens up, until we see what’s happening and it’s the second quarter which really makes the big difference.
Omkar Godbole
Okay. All right. Thank you, sir.
Ravi Kant Jaipuria
Thank you.
Operator
Thank you very much. With this, I now hand the conference over to the management for closing comments.
Raj Pal Gandhi
Thank you. I hope we have been able to answer all your questions satisfactorily. Should you need any further clarifications or would like to know more about the company, please feel free to contact our investor relations team. Thank you once again for your interest in sports and for taking the time out to join us on this call. Look forward to interacting with you soon. Thank you very much.
Operator
[Operator Closing Remarks]