Varun Beverages Ltd.Strong Q1 with 18% Revenue Growth

Varun Beverages delivered an impressive Q1 CY2026 performance with consolidated revenue rising 18.1% YoY to ₹65,742 million, driven by robust volume growth of 16.3%.

India volumes grew 14.4% while international markets surged 21.4%, reflecting strong execution across geographies. Net profit increased 20.1% to ₹8,787 million with EBITDA margins expanding 55 basis points to 23.3%, supported by 112 basis points margin improvement in India. The company's dairy segment grew approximately 60% with three times higher realizations than base beverages, while energy drinks exceeded expectations.

Management outlined aggressive distribution expansion plans, targeting addition of 500,000 outlets from a base of 4 million during CY2026. With six months raw material inventory in international markets providing cost advantages, adequate manufacturing capacity to handle 50% growth, and only ₹500-600 crore India capex planned, the company is well-positioned. Chairman Ravi Jaipuria expressed confidence in sustaining double-digit growth for the next 5-10 years, citing favorable demographics and superior go-to-market execution as key competitive advantages.