Varun Beverages (VBL) Q2 2026 earnings summary

Executive summary

• Consolidated sales volume grew 19.8% year-over-year, driving a 20.4% increase in net revenue from operations for Q2 2026, reaching INR 84,512.3 million.

• EBITDA rose 17.2% to INR 23,430.4 million, with PAT up 15.1% to INR 15,253.6 million, driven by strong growth in both India and international markets.

• India saw 14.4% volume growth, with international volumes up 38.4%, including 11.8 million cases from Twizza in South Africa.

• Exclusive bottling and trademark license with PepsiCo extended to April 2049, removing SPV-only restriction and enhancing operational flexibility.

• Strategic alliance with Asahi Group to launch CALPIS in India and agreement to acquire Devyani Food Industries (Kenya) Limited.

Financial highlights

• Q2 2026 revenue from operations reached INR 84,512.3 million, up 20.4% year-over-year; H1 2026 revenue was INR 150,254 million, up 19.4%.

• Gross margin improved by 44 bps to 55.0% year-over-year, aided by a higher international mix and cost efficiencies.

• EBITDA margin for Q2 2026 was 27.7%, down 76 bps due to Twizza consolidation.

• Net realization per case improved 1.2% year-over-year.

• Low-sugar, no-sugar products made up 73% of consolidated volume.

Outlook and guidance

• Management remains confident in long-term growth, citing favorable demographics, rising incomes, and increased beverage consumption.

• Adequate capacities, diversified portfolio, and strong partnerships position the company for sustained, profitable growth.

• Focus on leveraging expanded capacities and distribution for future growth, especially in India and Africa.