Revenue from operations for Q1 FY26 stood at Rs 7,333.67 crore, compared to Rs 7,513 crore in the corresponding quarter of the previous financial year.
Sequentially, PAT rose significantly by 81.2%, up from Rs 731.36 crore in the March quarter.
In addition to the Q1 results, the company’s Board of Directors has approved an interim dividend of 25% of the face value, amounting to Rs 0.50 per share. The total estimated cash outflow for this dividend distribution will be approximately Rs 169.1 crore.
The company’s EBITDA margin expanded by 82 basis points YoY to 28.5% in Q2 CY2025, compared to 27.7% in Q2 CY2024, despite higher fixed overheads from newly commissioned capacity at four greenfield plants in India, which are yet to contribute incremental volumes.
The margin expansion was supported by operational efficiencies and favourable currency movements in international markets. Gross margins remained stable at 54.5% during the quarter, while EBITDA stood steady at Rs 1,998.77 crore.Varun Beverages also acquired 50% of the equity share capital of Everest Industrial Lanka (Private) Limited (EIL), based in Sri Lanka. EIL is engaged in the production, manufacturing, distribution, and sale of commercial visi-coolers and related accessories.In its investor presentation, the company reported a 3% YoY decline in consolidated sales volume to 389.7 million cases in Q2 CY2025, down from 401.6 million cases in the same quarter of CY2024.
The drop in volumes was primarily attributed to unusually high and unseasonal rainfall across India during the quarter.
Region-wise, sales volumes in India declined by 7.1%, while international volumes registered robust growth of 15.1%. South Africa alone posted a 16.1% rise, partially offsetting the overall decline.
The company remained net debt-free during the quarter, maintaining free cash of Rs 514.90 crore. This strong liquidity position has contributed to a healthier balance sheet and ensures readiness for future growth initiatives.
“Although unseasonal rains have impacted performance during the quarter, we have successfully navigated such challenges in the past and emerged stronger. We continue to strengthen our on-ground execution by adding more visi-coolers and ensuring wider product availability across retail touchpoints,” said Ravi Jaipuria, Chairman of Varun Beverages.
On the outlook, the company stated that with robust capacities now operational, an expanding product portfolio, and a sharply focused distribution network, it is well-positioned to capture emerging opportunities and drive sustainable, long-term value creation for all stakeholders.
Following the quarterly results, shares of Varun Beverages were trading 1.5% higher at Rs 493.95 on the BSE.
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