Varun Beverages Ltd

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

The changes in the aforesaid agreement include extension of the EBA for a term up to 30 April 2049, revised from earlier term up to 30 April 2039. The earlier EBA restricted VBL from carrying out any activity other than to act as an SPV for PepsiCo business, now this requirement is deleted in the revised EBA. 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. Powered by Capital Market - Live

Varun Beverages announced that the Board of Directors of the Company at its meeting held on 27 April 2026, inter alia, have recommended the 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 20.08% to Rs 872.36 crore in the quarter ended March 2026 as against Rs 726.49 crore during the previous quarter ended March 2025. Sales rose 18.09% to Rs 6574.19 crore in the quarter ended March 2026 as against Rs 5566.94 crore during the previous quarter ended March 2025. ParticularsQuarter EndedMar. 2026Mar. 2025% Var. Sales6574.195566.94 18 OPM %23.2022.69 - PBDT1519.981250.32 22 PBT1163.19977.81 19 NP872.36726.49 20 Powered by Capital Market - Live

Revenue from operations (excluding excise duty) surged 18.09% YoY to Rs 6,574.19 crore in the first quarter of 2026. During the quarter, profit before tax climbed 18.96% to Rs 1,163.19 crore from Rs 977.81 crore recorded in the same quarter last year. Gross margins improved by 62 bps to 55.2% in Q1 CY2026, supported by early stocking of key raw materials despite the inflationary raw material environment. For Q1 CY26, EBITDA grew 21% to Rs 1,528.93 crore from Rs 1,263.96 crore posted in the corresponding quarter last year. EBITDA margin improved by 55 bps to 23.3% in Q1 CY2026. In India, EBITDA margin rose 112 bps, driven by operational efficiencies, robust volume growth, and improved gross margins. Consolidated sales volume rose 16.3% to 363.4 million cases in Q1 CY26 from 312.4 million cases in Q1 CY25, driven by strong volume growth of 14.4% in India and 21.4% in international territories. Net realization per case improved by 1.6% at the consolidated level, supported by better realizations in international markets, primarily due to favourable currency movements. However, net realization per case in India declined by 1.5%, mainly due to volume growth initiatives such as pack upsizing and selective price-point launches in targeted markets to onboard new consumers. Ravi Jaipuria, chairman of Varun Beverages, 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. 65,742 million, and EBITDA improved by 21.0% YoY to Rs. 15,289 million. In India, demand remained encouraging during the quarter, supported by our wide distribution reach, strengthened execution, and continued investments in manufacturing capacity and chilling infrastructure. We undertook targeted initiatives to drive volumes and strengthen our domestic portfolio, including pack upsizing, selective price-point launches in identified markets to onboard new consumers, and new launches in the energy and juice based drink segments. The facilities commissioned over the last year have stabilized well and are expected to support growth and enhance operating efficiencies going forward. Our international business continued to make steady progress during the quarter. We consummated the acquisition of Twizza in South Africa through BevCo, strengthening our manufacturing footprint and route-tomarket capabilities in Africa's largest soft drinks market. The acquisition is expected to generate meaningful operational and commercial synergies over time. We have also entered into an agreement to acquire Crickley Dairy through BevCo, which will further strengthen our presence in South Africa, subject to regulatory and other approvals. Across Africa, we continue to build scale in snacks and deepen our presence in high-potential markets, in line with our strategy of broadening the portfolio and strengthening consumer relevance. In accordance with our dividend policy, 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. 1,691 million. Looking ahead, we remain confident in the long-term opportunity across our markets, supported by favorable demographics, rising incomes, growing urbanization, and increasing beverage consumption. With adequate capacities, a diversified portfolio, and a strong distribution network, we are well-positioned to deliver sustained growth and create long-term value for all our stakeholders.' The company has completed the acquisition of a 100% stake in Twizza (Pty) Limited, South Africa, through its subsidiary, The Beverages Company Proprietary Limited (BevCo), at an enterprise value of ZAR 2,053 million. Consequently, Twizza has become a step-down subsidiary with effect from 18 March 2026. The acquisition, supported by Twizza's established manufacturing footprint and strong distribution network, is expected to enhance the company's presence in Africa's largest soft drinks market and generate operational and commercial synergies, aligning with its long-term growth strategy in the region. Separately, the company had entered into a share purchase agreement on 17 March 2025, through BevCo, to acquire a 100% stake in Crickley Dairy Proprietary Limited, South Africa, at an enterprise value of approximately ZAR 238 million (including working capital), subject to regulatory and other approvals. Meanwhile, the board approved an interim dividend of Rs 0.50 per share (25% of face value), with a total cash outflow of approximately Rs 1,691 million. The final dividend of Rs 0.50 per share for FY25 was approved by shareholders at the AGM held on 1 April 2026 and has been duly paid. 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.

Varun Beverages will hold a meeting of the Board of Directors of the Company on 27 April 2026.