Varun Beverages Ltd.Strong 20% Growth Momentum & Margins

Varun Beverages delivered robust Q1 FY27 performance with consolidated revenue growing 20.4% year-on-year to ₹84,512 crore, driven by 19.8% volume growth across markets.

India witnessed 14.4% volume growth despite a flat April, while momentum accelerated to 20%+ from March onwards, which management expects to sustain post-June. International markets showed exceptional performance with 38.4% volume growth, including contributions from the Twizza acquisition in South Africa. EBITDA increased 17.2% to ₹23,430 crore, with India margins expanding 38 basis points despite cost headwinds, demonstrating operational leverage.

PAT grew 15.1% to ₹15,254 crore. Management highlighted successful portfolio diversification with value-added dairy growing over 40% and Nimbooz expanding 30%+, both significantly outpacing core business. The PepsiCo agreement extension to 2049 with removal of SPV restrictions provides operational flexibility for new categories. Strategic alliance with Asahi to launch CALPIS strengthens dairy presence. Management expressed high confidence in margin sustainability even amid geopolitical cost pressures, citing strong inventory management and 73% low-sugar product mix.