Varun Beverages Limited has delivered exceptional operational and financial performance in Q1 CY2026, demonstrating strong growth momentum across both domestic and international markets. The company announced its financial results on April 27, 2026, showing total sales volume increased by 16.30%, fueled by robust performance in India with 14.40% growth and impressive international expansion showing 21.40% growth globally.

Volume Growth Performance

The company achieved significant volume expansion across its key markets during Q1 CY2026. Consolidated sales volume grew to 363.4 million cases from 312.4 million cases in Q1 CY2025, reflecting successful market penetration strategies and effective distribution network expansion.

Financial Performance Overview

Varun Beverages demonstrated robust growth across key financial metrics during Q1 CY2026. Net revenue from operations reached ₹65,741.90 million, marking an 18.1% increase from ₹55,669.35 million recorded in the corresponding quarter of the previous year. Revenue from operations stood at ₹67,215.37 million, growing 18.3% year-on-year.

Profitability and Margins

Net profit after tax showed strong momentum, increasing by 20.1% to ₹8,787.13 million compared to ₹7,313.58 million in Q1 CY2025. EBITDA margins improved by 55 basis points to 23.3%, while gross margins increased by 62 basis points to 55.2%, supported by early stocking of key raw materials and a higher mix of low sugar and no sugar products, which now constitute approximately 63% of consolidated sales volumes. Net realization per case improved by 1.6% at the consolidated level, supported by improved realizations in international territories primarily due to favorable currency movement.

Product Portfolio Mix

The company's product portfolio showed strategic diversification during Q1 CY2026. Carbonated soft drinks constituted 73.6% of sales, non-carbonated beverages accounted for 7.5%, and packaged drinking water represented 18.9% of the business mix.

Strategic Acquisitions and International Expansion

During the quarter, the company completed significant strategic acquisitions to strengthen its international presence. The Beverage Company Proprietary Limited, a subsidiary in South Africa, acquired 100% share capital of Twizza Proprietary Limited for an enterprise value of ZAR 2,053 million (₹11,398 million), making it a step-down subsidiary effective March 18, 2026. Additionally, the company entered into an agreement to acquire Crickley Dairy Proprietary Limited through BevCo for an enterprise value of approximately ZAR 238 million, subject to regulatory and other approvals.

Management Commentary

Commenting on the performance, Mr. Ravi Jaipuria, Chairman, Varun Beverages Limited, expressed satisfaction with the strong Q1 CY2026 results, highlighting healthy demand and disciplined execution across markets. He emphasized the company's targeted initiatives to drive volumes, including pack upsizing, selective price-point launches in identified markets, and new launches in energy and juice-based drink segments. Jaipuria noted that facilities commissioned over the last year have stabilized well and are expected to support growth and enhance operating efficiencies going forward.

Dividend Declaration

The Board of Directors approved an interim dividend of ₹0.50 per equity share, representing 25% of face value, for financial year 2026. The total cash outflow is expected to be approximately ₹1,691 million. Additionally, a final dividend of ₹0.50 per equity share for the year ended December 31, 2025, was approved by shareholders at the Annual General Meeting held on April 1, 2026, and has been duly paid.

Source: Company Press Release/INE200M01039/4326b8e3-e9e5-438c-8948-0aa774296c44.pdf

Varun Beverages Limited has issued a corporate guarantee of ZAR 770 Million on behalf of its South African subsidiary, The Beverage Company Proprietary Limited, in favour of JPMorgan Chase Bank. The guarantee was executed on April 22, 2026, at 2:30 P.M. and disclosed to stock exchanges under regulatory compliance requirements.

Corporate Guarantee Details

The corporate guarantee has been structured to secure credit facility extended to The Beverage Company Proprietary Limited, which operates as Varun Beverages' subsidiary in South Africa. The guarantee arrangement involves JPMorgan Chase Bank, N.A., acting through its Johannesburg branch as the beneficiary.

Regulatory Compliance and Disclosure

The transaction was disclosed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was made in accordance with Para B of Part A of Schedule III to the Listing Regulations and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The company communicated the details to both National Stock Exchange of India Limited and BSE Limited through formal regulatory filings.

Transaction Structure and Impact

According to the regulatory filing, the company confirmed that promoters, promoter groups, and group companies have no interest in this transaction, which has been executed at arm's length. The corporate guarantee will have no impact on the listed entity and represents a standard financial arrangement to support the subsidiary's operational requirements in the South African market.

Corporate Information

The disclosure was signed by Ravi Batra, Chief Risk Officer & Group Company Secretary, with digital signature dated April 22, 2026. The transaction details have been uploaded on the company's website at www.varunbeverages.com and communicated to stock exchanges as per regulatory requirements. The company's registered office is located at F-2/7, Okhla Industrial Area, Phase-I, New Delhi, while the corporate office operates from Gurugram, Haryana.