Varun Beverages reported a 20% year-on-year (YoY) increase in its consolidated net profit to Rs 872.36 crore in Q1CY26, up from Rs 726.49 crore in Q1CY25. Revenue from operations stood at Rs 6,721.53 crore, up 18.34% YoY from Rs 5,680.02 crore in Q1CY25.
On a sequential basis, the company saw a 246.46% increase in its consolidated net profit from Rs 251.79 crore reported in Q4CY25 (Oct- Dec 2025). Revenue also increased 55% sequentially from Rs 4,334.79 crore in Q4CY25.
Varun Beverages announces Rs 0.50 interim dividend
The company has announced an interim dividend of Rs 0.50 per share (face value Rs 2) for FY2026. May 1 has been fixed as record date and the dividend will be paid from May 5, onwards. “The Board of Directors has approved an interim dividend of 25% of face value, i.e., Rs. 0.50 per share, resulting in a total cash outflow of approximately Rs 169.1 crore,” the company said in it press release.
Sales volumes jump 16% led by international business
Consolidated sales volume grew by 16.3% to 36.34 crore cases in Q1 CY26 from 31.24 crore cases in Q1CY25 driven by strong volume growth of 14.4% in India and 21.4% in international Territories.
EBITDA increased 21.0% to Rs. 15,289.3 million in Q1 2026 from Rs. 12,639.6 million in Q1 2025. EBITDA margins improved by 55 basis points to 23.3% during the quarter. In India, EBITDA margins expanded by 112 basis points, driven by operational efficiencies supported by robust volume growth and improved gross margins.Shift towards low sugar portfolio
The company continues to see a shift in consumer preference, with low sugar and no sugar products contributing around 63% of consolidated sales volumes.
In terms of product mix, carbonated soft drinks accounted for 73.6% of sales, packaged drinking water contributed 18.9%, and non-carbonated beverages made up 7.5%.
Strong volume growth lifts Q1 performance: Varun Beverages Chairman
Commenting on the company’s Q1CY26 performance Chairman of Varun Beverages, Ravi Jaipuria said, “We are pleased to report a strong performance in the first quarter of CY2026, supported by healthy demand, disciplined execution, and continued progress across our markets. Consolidated sales volumes grew by 16.3% in Q1 CY2026, driven by volume growth of 14.4% in India and 21.4% in international territories. Revenue increased by 18.1% YoY to Rs 6,574.2 crore, and EBITDA improved by 21.0% YoY to Rs 1,528.9 crore.”
He added that demand in India remained encouraging, supported by strong distribution and ongoing investments in capacity and infrastructure. The company is also focusing on pack upsizing, selective pricing strategies and new product launches in energy and juice segments to drive growth.