Varun Beverages Q1 Results: Stock jumps after strong volume growth, margin expansion

Varun Beverages Ltd., PepsiCo’s second-largest bottling partner, reported its March quarter results on Monday, April 27, with growth across key parameters on a year-on-year basis. This also marks the company’s first reporting quarter under a calendar year format.Net profit for the quarter rose 20% to ₹872 crore, compared with ₹726.4 crore in the same period last year.

Revenue came in at ₹6,721 crore, up 18.3% from ₹5,680 crore a year ago. Revenue ex-excise increased 18% to ₹6,574 crore from ₹5,567 crore year-on-year.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew 21% to ₹1,528.7 crore from ₹1,264 crore, while margins expanded by 120 basis points to 22.8% from 21.6% last year.EBITDA ex-excise also rose 21% to ₹1,528.7 crore, with margins at 23.2% compared to 22.7% a year ago.

The company’s consolidated sales volumes grew 16.3% in Q1CY26. India volumes rose 14.4%, while international markets posted a stronger growth of 21.4%.

However, realisation per case in India declined 1.5%.

The company has declared an interim dividend of ₹0.50 per equity share for FY26. The record date is set as Friday, May 1, 2026, and the payout will be made from Tuesday, May 5, 2026.

Following the earnings announcement, shares of Varun Beverages were trading lower but have erased those losses and are now trading higher. The stock is still up 25% so far this year.