Varun Beverages Limited

Varun Beverages has fixed 01 August 2026 as record date for purpose of 2nd interim dividend for FY 2026. The dividend will be paid on and from 04 August 2026.

The stock came under pressure as EBITDA margin contracted 76 basis points following the consolidation of the lower-margin Twizza business in South Africa. The company's consolidated net profit increased 15.1% year-on-year to Rs 1,525.36 crore in Q2 CY2026. Revenue from operations (net of excise/GST) rose 20.4% YoY to Rs 8,451.23 crore. Consolidated sales volume increased 19.8% to 466.7 million cases, driven by volume growth of 14.4% in India and 38.4% in international markets. The Twizza acquisition contributed 11.8 million cases during the quarter. EBITDA rose 17.2% YoY to Rs 2,343.04 crore from Rs 1,998.77 crore. However, EBITDA margin declined 76 basis points to 27.7%, mainly due to the consolidation of the lower-margin Twizza business. In India, EBITDA margin improved 38 basis points, supported by operating leverage from healthy volume growth. Profit before tax increased 14.2% YoY to Rs 1,977.18 crore in Q2 CY2026. Total expenses climbed 22.6% YoY to Rs 6,574.15 crore. Cost of materials consumed rose 28.4% to Rs 3,653.49 crore, employee benefits expense increased 24.3% to Rs 683.24 crore, finance costs jumped 55.8% to Rs 56.92 crore, depreciation and amortisation expense rose 33.6% to Rs 409.04 crore, while other expenses increased 26.7% to Rs 1,618.60 crore. Gross margin improved 44 basis points to 55.0%, supported by a higher contribution from international operations. In India, early procurement of key raw materials and a higher mix of low-sugar and no-sugar beverages helped offset input cost inflation. During the quarter, the company extended its exclusive bottling and trademark licence agreement with PepsiCo in India until April 2049 and removed the earlier restriction requiring Varun Beverages to operate solely as a special purpose vehicle for PepsiCo's business in India. It also entered into a strategic alliance with Asahi Group Holdings to introduce the CALPIS brand in India and signed an agreement to acquire the business of Devyani Food Industries (Kenya), expanding its presence in East Africa. Chairman Ravi Jaipuria said strong volume growth across India and international markets, along with strategic initiatives and capacity expansion, positions the company for sustained long-term growth. The board approved an interim dividend of Rs 0.50 per share, resulting in a total cash outflow of approximately Rs 169.10 crore. Varun Beverages is one of PepsiCo's largest franchisees globally outside the US and manufactures, bottles and distributes a broad portfolio of carbonated soft drinks, juices, sports drinks and packaged drinking water under brands including Pepsi, Mountain Dew, Sting, Mirinda, Seven-Up, Slice, Tropicana, Gatorade and Aquafina. The company operates across 26 states and six Union Territories in India, with the domestic market contributing about 67% of its FY2025 revenue, and also has franchise and distribution rights across several international markets, including Nepal, Sri Lanka, Morocco, South Africa, Zambia and Zimbabwe. Powered by Capital Market - Live

Varun Beverages announced that the Board of Directors of the Company at its meeting held on 28 July 2026, inter alia, have recommended the Second Interim dividend of Rs 0.5 per equity Share (i.e. 25%) , subject to the approval of the shareholders.

Net profit of Varun Beverages rose 15.47% to Rs 1520.80 crore in the quarter ended June 2026 as against Rs 1317.02 crore during the previous quarter ended June 2025. Sales rose 20.43% to Rs 8451.23 crore in the quarter ended June 2026 as against Rs 7017.37 crore during the previous quarter ended June 2025. ParticularsQuarter EndedJun. 2026Jun. 2025% Var. Sales8451.237017.37 20 OPM %27.6728.47 - PBDT2386.212038.20 17 PBT1977.181732.04 14 NP1520.801317.02 15 Powered by Capital Market - Live

Varun Beverages will hold a meeting of the Board of Directors of the Company on 28 July 2026.

The acquisition will be executed for a consideration of $32 million (approximately Rs 3,050 million). The acquisition includes the business along with all assets associated with it as a going concern. The transaction is expected to be completed on or before 1 August 2026, subject to the terms of the agreement. The company said the acquisition will strengthen VBL's presence in Kenya and the broader East African region by leveraging DFIL Kenya's established manufacturing infrastructure and distribution network. DFIL Kenya's manufacturing facility is located in Nakuru, Kenya, on a strategically positioned 52-acre land parcel with a built-up area of approximately 17,500 square metres along a national highway. The plant manufactures value-added dairy beverages, juices and packaged drinking water and is equipped with modern infrastructure, including a reverse osmosis (RO) plant, boiler, effluent treatment plant, diesel generator set and air compressor. VBL Kenya is also preparing to commence production of carbonated soft drinks at the facility. VBL clarified that the acquisition is a related-party transaction, as VBL Industries (Kenya) is a wholly owned subsidiary of Varun Beverages, while DFIL Kenya is a promoter group company. However, the company stated that the transaction has been undertaken on an arm's length basis. Varun Beverages is a key player in the beverage industry and one of the largest franchisees of PepsiCo in the world (outside the USA). As of this date, VBL has been granted franchises for various PepsiCo products across 26 states and 6 union territories in India. VBL has also been granted the franchise for various PepsiCo products for the territories of Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe, South Africa, Lesotho, Eswatini & DRC and distribution rights for Namibia, Botswana, Mozambique and Madagascar. The company reported a 20.08% jump in consolidated net profit to Rs 872.35 crore in Q1 CY26 as compared with Rs 726.49 crore posted in Q1 CY25. Revenue from operations (excluding excise duty) surged 18.09% YoY to Rs 6,574.19 crore in Q1 CY26. The counter fell 1.90% to currently trade at Rs 486.30 on the BSE. Powered by Capital Market - Live

Varun Beverages has allotted 1,68,750 equity shares under ESOP on 01 July 2026. Consequent to the aforesaid allotment, the paid-up shares of the Company is increased from 338,22,96,144 equity shares to 338,24,64,894 equity shares having face value of Rs. 2/- each.

Asahi Group Holdings has entered into a business alliance agreement for franchising the CALPIS brand with Varun Beverages to introduce the CALPIS products into the Indian market. Starting in the second half of 2026 or thereafter, a ready-to-drink, non-alcohol/non-carbonated dairy based product will be launched under the name CALPIS, with two flavor offerings: Original and Mango. This marks Asahi Group's first entry into India's non-alcohol/non-carbonated beverage market. CALPIS is Japan's pioneering fermented milk-based beverage with a refreshingly sweet and tangy taste that has been enjoyed for more than a century. The brand offers a variety of products, including a concentrate for home preparation and ready-to-drink versions. Under this alliance, Asahi Group Holdings will be responsible for product development and providing technical support for the production of CALPIS-branded beverages, while its local subsidiary will oversee marketing and brand management. Varun Beverages will handle manufacturing, distribution and sales. This alliance enables Asahi Group to focus on product development and marketing in India, while Varun Beverages adds a product with unique value to its portfolio'creating a partnership expected to deliver mutual benefits.

Starting in the second half of 2026, a ready-to-drink, non-alcohol/non-carbonated dairy based product will be launched under the name CALPIS, with two flavor offerings - original and mango. This marks Asahi Group's first entry into India's non-alcohol/non-carbonated beverage market. Under this alliance, Asahi Group Holdings will be responsible for product development and providing technical support for the production of CALPIS-branded beverages, while its local subsidiary will oversee marketing and brand management. Varun Beverages will handle manufacturing, distribution and sales. This alliance enables Asahi Group to focus on product development and marketing in India, while Varun Beverages adds a product with unique value to its portfolio'creating a partnership expected to deliver mutual benefits. India is an extremely promising market for non-alcohol beverages. The market has grown remarkably, expanding by approximately 2.3 times in volume over the past decade through 2025. The market is expected to offer numerous growth opportunities, driven by factors such as population growth, the expansion of the wealthy middle-class, and rising health-consciousness among consumers. Varun Jaipuria, executive vice chairman at Varun Beverages Limited, said: 'We are honored to partner with Asahi Group, one of the world's leading beverage companies, renowned for its iconic brands and deep understanding of consumer preferences across markets. CALPIS is a brand with over a hundred years of heritage and consumer trust, and we are excited to introduce it to India. This is a category we are committed to building at Varun Beverages and one in which we see significant long-term potential. By combining Asahi's global expertise with Varun Beverages' manufacturing strength and extensive distribution network, we look forward to establishing CALPIS as one of the leading brands for Indian consumers.' Varun Beverages is a key player in the beverage industry and one of the largest franchisees of PepsiCo in the world (outside the USA). As of this date, VBL has been granted franchises for various PepsiCo products across 26 states and 6 union territories in India. VBL has also been granted the franchise for various PepsiCo products for the territories of Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe, South Africa, Lesotho, Eswatini & DRC and distribution rights for Namibia, Botswana, Mozambique and Madagascar. The company reported a 20.08% jump in consolidated net profit to Rs 872.35 crore in Q1 CY26 as compared with Rs 726.49 crore posted in Q1 CY25. Revenue from operations (excluding excise duty) surged 18.09% YoY to Rs 6,574.19 crore in Q1 CY26. The scrip shed 0.56% to currently trade at Rs 541.10 on the BSE. Powered by Capital Market - Live

Varun Beverages Ltd is up for a third straight session in a row. The stock is quoting at Rs 542.2, up 1.44% on the day as on 12:49 IST on the NSE. The benchmark NIFTY is down around 0.23% on the day, quoting at 23851.2. The Sensex is at 75767.34, down 0.13%. Varun Beverages Ltd has added around 5.55% in last one month. Meanwhile, Nifty FMCG index of which Varun Beverages Ltd is a constituent, has added around 2.26% in last one month and is currently quoting at 50141.9, down 0.45% on the day. The volume in the stock stood at 39.13 lakh shares today, compared to the daily average of 54.84 lakh shares in last one month. The benchmark June futures contract for the stock is quoting at Rs 543.95, up 1.24% on the day. Varun Beverages Ltd is up 13.92% in last one year as compared to a 3.63% fall in NIFTY and a 9.7% fall in the Nifty FMCG index.The PE of the stock is 64.87 based on TTM earnings ending March 26.Powered by Capital Market - Live