Varun Beverages reported a consolidated net profit of ₹15,253.55 million for the quarter ended June 30, 2026 (Q2CY26), marking a 15.1% year-on-year increase from ₹13,254.88 million in Q2CY25. The growth was primarily fueled by a 19.8% rise in consolidated sales volumes to 466.7 million unit cases, alongside a 20.4% increase in net revenue from operations to ₹84,512.32 million. For the first half of CY26 (H1CY26), net profit grew 16.9% year-on-year to ₹24,040.7 million, while revenue expanded 19.4% to ₹150,254.2 million. On July 28, 2026, the Board of Directors approved these unaudited financial results and declared a second interim dividend of ₹0.50 per equity share for the financial year 2026.

The dividend payment is scheduled for August 4, 2026, for shareholders recorded in the Register of Members or depository records as of August 1, 2026. The total cash outflow for the dividend is approximately ₹1,691 million. The financial results were reviewed by the Audit, Risk Management and Ethics Committee and approved by the Board under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Joint statutory auditors O P Bagla & Co. LLP and J C Bhalla & Co. issued a limited review report with an unmodified opinion on the consolidated and standalone results.

Key Financial Highlights

The company's financial metrics for Q2CY26 demonstrate robust top-line growth and operational efficiency, despite slight margin compression due to the consolidation of lower-margin international acquisitions.

Note: Figures are in millions unless specified otherwise.

Operational and Strategic Developments

Varun Beverages executed several strategic initiatives during the period. In South Africa, its subsidiary The Beverage Company Proprietary Limited (Bevco) acquired 100% stake in Twizza Proprietary Limited for an enterprise value of ZAR 2,053 million (₹11,398 million). Subsequently, Bevco entered into a binding agreement to acquire Crickley Dairy Proprietary Limited for ZAR 238 million (₹1,314.68 million), subject to regulatory approvals. Additionally, Varun Beverages Industries (Kenya) Limited entered into a Business Transfer Agreement to acquire the business of Devyani Food Industries (Kenya) Limited for USD 32 million (₹3,050 million), aiming to expand its carbonated soft drinks and energy drinks presence in Kenya.

In India, the company extended its Exclusive Bottling Appointment (EBA) with PepsiCo Inc. until April 30, 2049, removing previous restrictions on acting solely as a special purpose vehicle. This revision, signed on May 21, 2026, provides greater operational flexibility. Furthermore, Varun Beverages formed a business alliance with Asahi Group Holdings on June 18, 2026, to commercialize the CALPIS brand in India through a franchise arrangement, entering the value-added fermented dairy beverage category.

What the Numbers Show

The divergence between revenue growth (20.4%) and net profit growth (15.1%) indicates that while top-line expansion is accelerating, cost structures are absorbing some of the gains. EBITDA margins declined by 76 basis points to 27.7% in Q2CY26, primarily due to the consolidation of the Twizza business in South Africa, which currently operates at lower margins. However, gross margins improved by 44 basis points to 55.0%, supported by a higher mix of international business and savings in sugar consumption in India due to a higher mix of low-sugar/no-sugar products, which now constitute ~73% of consolidated sales volumes. The significant increase in depreciation (33.6% YoY) and finance costs (55.8% YoY) reflects the impact of new plant commissioning in India and the Twizza acquisition, respectively.

Varun Beverages Limited will host a conference call with investors and analysts on July 28, 2026, at 2:30 PM IST to discuss its financial results for the second quarter and first half of the calendar year 2026. The senior management of the company will be present to address the proceedings and provide insights into the performance for the period ended June 30, 2026.

Conference Call Details

The event allows stakeholders to gain direct access to the company's leadership regarding its quarterly developments. Participants can join the discussion via the provided dial-in numbers or through a pre-registration link to facilitate immediate connection.

The company has designated specific contact persons for queries regarding the conference call. Investors can reach out to Raj Gandhi, Deepak Dabas, or Manjit Singh Chadha from Varun Beverages Ltd or Anoop Poojari from CDR India for further information.