Varun Beverages Ltd has been associated with PepsiCo since the 1990s and is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world. The company produces and distributes a wide range of carbonated soft drinks, non-carbonated drinks and packaged water sold under trademarks owned by PepsiCo. PepsiCo brands produced and sold by the company include Pepsi, Seven-up, Mirinda Orange, Mountain Dew, Tropicana Juices and many more.
Q2 FY26 Earnings Results
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Revenue from Operations: ₹4,897 crore, up 1.9% YoY from ₹4,805 crore in Q2 CY24.
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Net Profit (PAT): ₹745 crore, up 18.4% YoY from ₹628.8 crore in Q2 CY24.
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EBITDA: ₹1,998.77 crore, EBITDA margin 28.5%, margin improved by 82 bps YoY.
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Consolidated sales volume: 389.7 million cases, down 3.0% YoY.
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International market volumes grew by 15.1%, partially offsetting domestic volumes decline due to rainfall.
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Gross margin steady at 54.5%.
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Operational efficiencies, capacity ramp-up, and product mix optimization contributed to margin expansion.
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Four new greenfield plants commissioned in India, ready for volume growth.
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Dividend: Interim dividend of ₹0.50 per share declared.
Management Commentary & Strategic Decisions
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Focus on operational excellence, capacity enhancement, and expansion in premium and health product segments.
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Sustained improvement in international markets, especially in Africa.
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Emphasis on ESG initiatives including water and energy management.
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Marketing and product innovation remain key focus areas to capture evolving consumer preferences.
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Long-term confident outlook on domestic beverage market potential despite volume headwinds caused by weather conditions.
Q1 FY26 Earnings Results
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Revenue from Operations: ₹7,017 crore, down 2.5% YoY from ₹7,513 crore in Q1 FY25.
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Profit After Tax (PAT): ₹1,325.49 crore, up 5% YoY from ₹1,261.83 crore.
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EBITDA: ₹1,998.77 crore, with margin expansion of 82 basis points YoY to 28.5%.
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Stable gross margin at 54.5%.
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Sequential PAT growth of 81.2% QoQ.
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Management highlights capacity ramp-up and international expansion as key growth drivers.
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Continued dividend payouts underlining strong cash generation and financial health.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.