Varun Beverages (VBL) investor relations material

Executive summary

• Achieved strong Q1 CY2026 performance with consolidated sales volumes up 16.3% year-on-year, led by 14.4% growth in India and 21.4% in international markets.

• Revenue rose 18.1% year-on-year to INR 65,742 million, and EBITDA increased 21% to INR 15,289 million.

• Completed acquisition of Twizza in South Africa (ZAR 2,053 million) and entered agreement to acquire Crickley Dairy (ZAR 232–238 million), expanding African footprint.

• Interim dividend of INR 0.50 per share (25% of face value), totaling INR 1,691 million cash outflow, declared for Q1 CY2026.

• Board approved unaudited standalone and consolidated financial results for Q1 2026, with a limited review and unmodified auditor opinion.

Financial highlights

• Consolidated revenue from operations for Q1 2026 was INR 65,742 million, up 18.1% year-on-year.

• EBITDA margin improved by 55 basis points to 23.3%; PAT increased 20.1% year-on-year to INR 8,787.1 million.

• Gross margin rose 62 basis points to 55.2%, aided by early stocking and higher mix of low/no sugar products (~63% of sales volume).

• Net realization per case improved 1.6% year-on-year at consolidated level, but declined 1.5% in India due to volume initiatives.

• Depreciation increased 30.9% due to commissioning of four new plants; finance cost up 18% from Twizza acquisition.

Outlook and guidance

• Confident in long-term growth prospects, supported by favorable demographics, rising incomes, and urbanization.

• Expect continued double-digit growth in India and international markets, barring abnormal weather events.

• CapEx for the year expected to be under INR 500-600 crore, with sufficient capacity for future growth and only one new plant planned.

• Adequate capacities, diversified portfolio, and strong distribution network position the company for sustained growth.

• Business is seasonal, with sales patterns influenced by seasonality.