Varun Beverages (VBL) investor relations material

Executive summary

• Q3 CY 2026 consolidated sales volumes rose 28.7% YoY to 354.4 million cases; EBITDA increased 25.1% to INR 14,267.1 million.

• Consolidated Q3 revenue from operations was ₹68,155.86 million and net profit was ₹8,305.92 million.

• Gross margin declined 334 bps to 53.1% and EBITDA margin fell 140 bps to 21.6%, as volume growth and improved realizations partly offset packaging-cost pressure.

Financial highlights

• Consolidated 9M CY 2026 revenue from operations was ₹223,712.41 million versus ₹181,011.15 million; net profit was ₹32,022.98 million.

• 9M EBITDA increased 19.9% to Rs. 52,745.8 million and net profit rose 15.5% to Rs. 32,023.0 million.

• Q3 beverage realizations per case increased 2.2% to Rs. 177.0; India realizations rose 0.5% on premium categories, calibrated discounting and price-pack architecture.

• Non-beverage sales revenue reached Rs. 3,343.5 million, up 72.4% YoY; higher preform, cap and other product sales affected India gross margin.

• Depreciation and amortisation expense rose 34.5% and finance costs rose 53.5%, primarily due to the Twizza acquisition and associated debt funding.

Outlook and guidance

• Focus remains on growth in existing markets, supported by prior investments, with selective expansion into adjacent businesses and emphasis on profitability and long-term value creation.

• Management considered gross margin to have troughed at current input-price trends, conditional on no further macro shocks; price-pack actions could provide upside.

• 2027 plans include aggressive numeric and weighted distribution expansion; outlet reach was 4.2 million, with a target to add a couple hundred thousand outlets annually.

• CALPIS launch preparations were underway, with marketing plans expected around Dec-Jan and initial market trials ahead of a broader marketing calendar.

• Operational synergies from the Twizza-Bevco merger are expected in coming quarters; early benefits were already evident.