Varun Beverages Limited Reports 33.2% Q3 Revenue Growth

Varun Beverages Limited reported consolidated revenue of ₹6,607.56 crore for Q3 CY2026, up 33.2% year-on-year, as consolidated sales volume increased 28.7% to 354.4 million cases. EBITDA rose 25.1% to ₹1,426.71 crore, while the company declared an interim dividend of ₹0.50 per share.

What did Varun Beverages report for Q3 CY2026?

Varun Beverages reported strong top-line and volume growth for the quarter ended September 30, 2026. Its Q3 CY2026 results presentation showed consolidated revenue rising 33.2% year-on-year to ₹6,607.56 crore, driven by higher sales volumes and improved realisations.

The company said consolidated sales volume rose 28.7% to 354.4 million cases. India volume grew 22.5%, while international volume increased 39.9%. The international growth rate was higher than domestic growth, making overseas operations an important contributor to the consolidated volume expansion during the quarter.

In a separate results summary, Varun Beverages reported revenue from operations of ₹6,815.59 crore, up 33.3% year-on-year from ₹5,112.44 crore. The provided disclosures use different revenue measures, with the results presentation citing consolidated revenue of ₹6,607.56 crore and the results summary citing revenue from operations of ₹6,815.59 crore.

Consolidated net profit rose 13.5% year-on-year to ₹830.59 crore, compared with ₹731.51 crore in the corresponding quarter of the previous year. The difference between revenue growth and profit growth reflected a lower gross margin and the impact of costs during the period.

Why did sales volumes increase during the quarter?

Varun Beverages said Q3 sales growth was supported by volume growth across its India and international markets. India sales volume grew 22.5% year-on-year, while international markets recorded a 39.9% increase. Consolidated growth of 28.7% took sales volume to 354.4 million cases.

Higher realisations also supported revenue growth. This meant revenue rose faster than total sales volume, with consolidated revenue increasing 33.2% compared with 28.7% volume growth. The company did not provide a separate numerical breakdown of the contribution from pricing, mix or individual geographies in the supplied material.

Non-beverage product sales in India increased by about 104% during the quarter. Management indicated that this change in product mix affected the India gross margin by around 100 basis points. The disclosure shows that sales expansion included categories beyond the core beverage portfolio.

The quarter followed a CY2025 in which the company faced weather-related disruption in India during the peak summer season. In its earlier full-year call, Varun Beverages said domestic volume growth was affected by unprecedented heavy rainfall during parts of the year, although India volume growth improved to 10.5% in the fourth quarter.

How did costs and margins affect Varun Beverages' earnings?

Varun Beverages' gross margin declined 334 basis points year-on-year to 53.1% in Q3 CY2026, primarily because of higher packaging costs. The increase in non-beverage product sales in India also had a stated impact of about 100 basis points on the India gross margin.

Despite this margin movement, EBITDA increased 25.1% year-on-year to ₹1,426.71 crore. However, EBITDA growth was below the 33.2% increase in consolidated revenue, consistent with the pressure from packaging costs and the change in sales mix disclosed by management.

Net profit grew 13.5% to ₹830.59 crore. This was a positive increase from the year-earlier quarter, but it was lower than the pace of revenue and EBITDA growth. The available disclosures do not provide further detail on the specific line items affecting the gap between EBITDA and net profit.

Varun Beverages also approved an interim dividend of ₹0.50 per share, with a total payout of about ₹169.10 crore. The dividend declaration accompanied the company’s Q3 CY2026 financial results announcement on October 30, 2026.

What are Varun Beverages' CY2027 capital expenditure plans?

Varun Beverages said its CY2026 capital expenditure programme was largely complete, and it outlined further spending for CY2027 in India and international markets. Raj Gandhi said planned international spending would be below $100 million and would cover new lines in South Africa, Zimbabwe, Morocco, the Democratic Republic of Congo and Zambia.

For India, Varun Jaipuria said capital expenditure would be about ₹1,000 crore. The plan includes a greenfield plant at Suratpur, Rajasthan, and a piece line. The company did not state commissioning dates or expected production capacity for these projects in the supplied material.

The investment plan follows a period of significant capacity addition. In CY2025, Varun Beverages spent about ₹1,700 crore to establish four greenfield production facilities in Prayagraj in Uttar Pradesh, Buxar in Bihar, Damtal in Himachal Pradesh and Mendipathar in Meghalaya.

Management had said the greenfield plants and backward-integration facilities commissioned in CY2025 were progressively stabilising. These investments were expected to support higher volumes and operating leverage in the upcoming season, according to the earlier earnings call.

How can investors review the Q3 CY2026 discussion?

Varun Beverages released the audio recording of its Investors and Analysts Conference Call held on October 30, 2026. The call followed the announcement of unaudited financial results for the quarter and nine months ended September 30, 2026.

The company submitted the recording link to the National Stock Exchange of India and BSE Limited under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. Ravi Batra, Chief Risk Officer and Group Company Secretary, signed the filing, and the recording is available through the company’s website.

For investors, the Q3 release provides three measurable areas to track: sales-volume growth in India and international markets, the effect of packaging costs on gross margin, and the execution of CY2027 capacity investments. The disclosures also show that the company is continuing to add production infrastructure across India and selected African markets.

Conclusion

Varun Beverages delivered 33.2% consolidated revenue growth and 28.7% volume growth in Q3 CY2026, with international markets expanding faster than India. Higher packaging costs and product-mix effects reduced gross margin to 53.1%, which moderated the pace of EBITDA and net-profit growth relative to revenue.

The next disclosed developments to watch are the implementation of about ₹1,000 crore of India capital expenditure and planned international spending below $100 million for CY2027. Investors can also review management’s October 30 conference-call recording for further commentary on volume trends, margins and capacity additions.