Varun Beverages Share Price in Focus; Q1 CY2026 PAT Jumps 20% YoY

Varun Beverages Limited reported its financial performance for the quarter ended March 31, 2026. Revenue from operations grew 18.1% year-on-year to ₹65,741.9 million, compared to ₹55,669.4 million in Q1 CY2025.

The growth was primarily driven by a 16.3% increase in consolidated sales volume, which rose to 363.4 million cases. India recorded a 14.4% growth in volumes, while international markets saw a stronger expansion of 21.4%. 

Net realization per case improved marginally by 1.6% at the consolidated level, although it declined by 1.5% in India due to pricing strategies aimed at expanding consumer reach.

Improved Margins and Profitability

Gross margins improved by 62 basis points to 55.2%, supported by early procurement of key raw materials despite inflationary pressures. EBITDA increased 21.0% to ₹15,289.3 million, with EBITDA margins improving to 23.3%, reflecting operational efficiencies and scale benefits.

In India, EBITDA margins expanded by 112 basis points due to strong volume growth and improved cost efficiencies. The product mix also evolved positively, with low-sugar and no-sugar beverages accounting for around 63% of total sales volumes, indicating a shift towards healthier consumption trends.

Profit Growth and Cost Factors

Profit after tax (PAT) rose 20.1% year-on-year to ₹8,787.1 million, driven by higher volumes and improved margins across markets. However, certain cost factors impacted overall profitability. Depreciation increased by 30.9% due to the commissioning of new manufacturing plants in Buxar, Prayagraj, Damtal, and Meghalaya.

Additionally, finance costs rose 18.0% following the acquisition of Twizza in South Africa. These factors reflect ongoing investments aimed at expanding capacity and strengthening global presence.

Dividend Announcement

The company maintained its shareholder return strategy by approving an interim dividend of ₹0.50 per share, representing 25% of the face value. This results in a total cash outflow of approximately ₹1,691 million. The final dividend of ₹0.50 per share for FY2025 was also approved and paid earlier in April 2026.

Varun Beverages Share Price Today

On April 28, 2026, Varun Beverages share price (NSE: VBL) opened at ₹521.50 touching the day’s high at ₹529.40, as of 10:35 AM on the NSE.

Also Read: Varun Beverages Arm to Acquire 100% Stake in Crickley Dairy in South Africa!

Conclusion

Varun Beverages’ Q1 CY2026 performance highlights its ability to drive growth through volume expansion, operational efficiency, and strategic investments. With a growing international footprint and evolving product mix, the company remains well-positioned to sustain momentum in the coming quarters.

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