Varun Beverages Ltd

Varun Beverages Limited (VBL) reported strong financial performance in Q3 CY2026, with consolidated sales volumes rising 28.7% year-over-year (YoY) to 354.4 million cases, driven by 22.5% growth in India and 39.9% in international markets. Revenue from operations increased by 33.2% to Rs. 66,075.6 million, while EBITDA grew by 25.1% to Rs. 14,267.1 million. The executive vice chairman highlighted robust volume growth supported by expanded distribution networks, manufacturing capacities, and new premium product launches like 'Ad Rush' and 'Evervess' mixers. International expansion included beverage operations in Kenya and new brands 'BOLT UP' and 'XTREME FIZZ', alongside a merger with Twizza in South Africa. The company also incorporated KIVA Spirits to explore ready-to-drink and alcoholic beverages. Net profit after tax (PAT) rose 13.5% to Rs. 8,305.9 million. However, gross margins contracted by 334 basis points due to higher packaging costs and non-beverage product sales, partially offset by improved product mix and sugar cost management. The Board approved an interim dividend of Rs. 0.50 per share. Sustainability initiatives included water conservation, renewable energy adoption, and plastic recycling targets. The document noted that previous financial figures were restated due to a business acquisition in Kenya.

The document emphasizes strong sales growth, EBITDA expansion, international expansion, and strategic initiatives, with management highlighting positive operational and market developments.