Conference Call with Varun Beverages Management and Analysts on Q2CY26 Performance and Outlook. Listen to the full earnings transcript.
Food & Beverages company Varun Beverages announced Q2CY26 results Consolidated Financial Highlights: Revenue from operations for Q2CY26 stood at Rs 86,505.70 million, representing a QoQ growth of 28.70% compared to Rs 67,215.37 million in Q1CY26 and a YoY increase of 20.77% over Rs 71,630.21 million in Q2CY25. Total income for the quarter Q2CY26 was Rs 87,549.51 million, up 29.41% from Rs 67,650.65 million in Q1CY26 and rising 20.92% from Rs 72,401.79 million in Q2CY25. Net profit after tax for Q2CY26 reached Rs 15,253.55 million, showing a significant QoQ growth of 73.59% over Rs 8,787.13 million in Q1CY26 and a YoY increase of 15.08% compared to Rs 13,254.88 million in Q2CY25. Profit before tax for Q2CY26 was Rs 19,771.77 million, reflecting a QoQ increase of 69.98% from Rs 11,631.89 million in Q1CY26 and a YoY growth of 14.15% from Rs 17,320.44 million in Q2CY25. Basic Earnings Per Share (EPS) for Q2CY26 was Rs 4.50, compared to Rs 2.58 in Q1CY26 and Rs 3.89 in Q2CY25. Standalone Financial Highlights: Revenue from operations in Q2CY26 was Rs 59,962.08 million, up 33.23% from Rs 45,005.54 million in Q1CY26 and up 13.03% from Rs 53,050.21 million in Q2CY25. Total income for Q2CY26 stood at Rs 61,006.00 million, compared to Rs 46,748.76 million in Q1CY26 (up 30.50%) and Rs 53,950.35 million in Q2CY25 (up 13.08%). Net profit after tax for Q2CY26 was Rs 13,243.32 million, marking a QoQ growth of 68.08% over Rs 7,879.07 million in Q1CY26 and a YoY increase of 14.15% over Rs 11,601.61 million in Q2CY25. Profit before tax for Q2CY26 reached Rs 17,551.21 million, as against Rs 10,434.37 million in Q1CY26 and Rs 15,476.99 million in Q2CY25. Business Highlights: Interim Dividend: The Board of Directors approved a second interim dividend of Rs 0.50 per equity share of the nominal value of Rs 2/- each for the financial year FY27. International Acquisitions: The Group's South African subsidiary, Bevco, acquired 100% share capital of Twizza Proprietary Limited for an enterprise value of ZAR 2,053 million (Rs 11,398 million) on March 18, 2026. Bevco has entered into a binding agreement to acquire 100% stake in Crickley Dairy Proprietary Limited in South Africa for an enterprise value of ZAR 238.00 million (Rs 1,314.68 million). VBL Industries (Kenya) Limited entered into an agreement to acquire the value-added dairy, juices, and packaged drinking water business of Devyani Food Industries (Kenya) Limited for a consideration of USD 32 million (Rs 3,050 million). Energy Investments: The company subscribed to a 29.99% equity share capital in FPEL HR2 Energy Private Limited for Rs 15.84 million and acquired an additional 23% stake in Jager Renewables Two Private Limited for Rs 70.51 million to provide solar power for captive consumption in Haryana and Rajasthan. Revised PepsiCo Agreement: On May 21, 2026, the company entered into a revised Exclusive Bottling Appointment (EBA) and trademark license agreement with PepsiCo for India, extending the term to April 30, 2049. The revised agreement removes previous restrictions that limited the company to acting as an SPV for PepsiCo business. New Brand Alliance: The company entered into a business alliance with Asahi Group Holdings to introduce and commercialize the 'CALPIS' fermented milk-based beverage brand in India in Original and Mango variants. Ravi Jaipuria, Chairman, Varun Beverages, said: “We are pleased to report a strong performance during this quarter across our markets. Consolidated sales volumes grew by 19.8% and, together with improved realizations, translated into a 20.4% increase in net revenue from operations. EBITDA increased by 17.2% to Rs. 23,430.4 million in Q2CY26. In India, we saw healthy volume growth in twenties since the onset of season i.e. from March onwards except for the month of April which was about flat resulting in overall volume growth for the quarter of 14.4%. Our expanded manufacturing footprint, extensive distribution network and continued investments in chilling infrastructure continued to drive growth. We also extended our exclusive bottling and trademark licence agreement with PepsiCo in India until April 2049 and removed the earlier restriction requiring VBL to operate solely as an SPV for PepsiCo's business, strengthening our long-term partnership and creating greater operational flexibility to pursue opportunities that can deliver scale, and synergies. We also entered a strategic alliance with Asahi Group Holdings to introduce the iconic CALPIS brand in India, marking our entry into the value-added fermented dairy beverage category. The international business maintained strong momentum. Twizza, in South Africa, helped overcoming capacity constraints, while strengthening our manufacturing footprint and route-to-market capabilities in South Africa. We also entered into an agreement to acquire the business of Devyani Food Industries (Kenya) Limited, which will provide us with the ready GTM in Kenya for expansion into carbonated soft drinks and energy drinks. In accordance with our dividend policy, the Board of Directors has approved an interim dividend of 25% of face value, i.e., Rs 0.50 per share, resulting in a total cash outflow of approximately ~Rs 1,691 million. Looking ahead, we remain confident in the long-term growth potential across our markets, supported by favourable demographics, rising disposable incomes and increasing consumption of packaged beverages. With adequate capacities, a growing and diversified portfolio, strong partnerships and an extensive distribution network, we are well positioned to deliver sustained and profitable growth and create long-term value for all our stakeholders.” Result PDF