Varun Beverages Q4 profit up 36% on volumes in 2026

What Varun Beverages reported this quarter

Varun Beverages, a key PepsiCo bottling partner, reported a higher quarterly profit for the quarter ended December 31, according to a Reuters report dated February 3, 2026. Net profit rose 36% to ₹252 crore (₹2.52 billion). The company linked the improvement to higher sales volumes and lower borrowing costs, which supported margins. Revenue from operations increased 13.5% year-on-year to ₹4,335 crore (₹43.35 billion). Consolidated sales volumes rose 10.2% during the quarter, aided by festive-season demand in India and continued traction in international markets.

Volume growth split: India and international markets

The company reported that sales volumes in India grew 10.5%. International markets posted 10% volume growth, led by Africa. The data points to broad-based expansion rather than growth concentrated in one geography. Varun Beverages packages and distributes beverages under Pepsi and Tropicana labels, among others, and also sells products under its own brands such as “Jive” and “Cream Bell”. The quarter’s performance, as described, combined stronger consumption with operating conditions that helped profitability.

Margins: lower finance cost and other income tailwinds

Varun Beverages said profit growth was supported by lower finance costs and higher other income. It cited interest income on deposits and favourable currency movements in international markets as contributors. These line items matter because they can amplify profit growth even when cost pressures exist elsewhere. For investors, the key takeaway is that earnings were supported by both operating momentum (volumes) and financial items (finance costs and other income).

Market reaction: stock moves after results

The Reuters report said shares of Varun Beverages rose 4.9% in afternoon trade following the results. Separately, another update in the provided material noted the stock trading 1.5% higher at ₹493.95 on the BSE after quarterly results (in the context of a different quarter’s update). Both data points reflect positive near-term sentiment after earnings, although they refer to different result-related moments included in the source text.

Recent quarterly and trailing metrics in the dataset

The dataset also lists key snapshot indicators: cash of ₹1,599.94 crore, debt of ₹376.07 crore, promoter holding of 59.44%, EPS (TTM) of ₹7.91, sales growth (1-year) of 1.45%, and ROE of 15.17%. It also reports multi-year growth rates: sales growth of 11.17% (3-year) and 24.45% (5-year), and profit growth of 15.35% (1-year), 28.21% (3-year), and 63.88% (5-year). These figures provide a framing for how the market may benchmark the latest quarter against longer-term performance.

Financial trajectory since 2020: scale-up in revenue and profit

The provided material states that between 2020 and 2024, Varun Beverages’ revenue increased from ₹6,450 crore to ₹20,008 crore, while net profit rose from ₹424 crore to ₹2,636 crore. It also describes this as a 40% annualised growth rate over that period. A separate financial table (figures appear to be in ₹ million) shows revenue at 200,077 for FY2024 and 64,501 for FY2020, which normalises to ₹20,007.7 crore and ₹6,450.1 crore respectively, consistent with the narrative numbers.

Quarterly PAT and EPS table available in the source

The dataset includes a quarterly snapshot of Profit After Tax (PAT) and adjusted EPS across five quarters (Dec 2024 to Dec 2025). The pattern shows a spike in Jun 2025 PAT and EPS compared to neighbouring quarters. This kind of volatility typically leads investors to focus on seasonality, base effects, and one-off items, but the text provided does not specify the drivers for each quarter in that table.

FY25 and FY26 updates: revenue, PAT, margins, dividend

The material also includes a Q1 FY26 (Apr–Jun 2025) update stating PAT rose 5% year-on-year to ₹1,325.49 crore from ₹1,261.83 crore, while revenue from operations declined year-on-year. Two revenue figures are provided for Q1 FY26: ₹7,333.67 crore in one paragraph, and ₹7,017 crore (down 2.5% YoY from ₹7,513 crore) in the earnings summary section. The same summary states EBITDA was ₹1,998.77 crore and EBITDA margin expanded by 82 basis points year-on-year to 28.5% (from 27.7%), while gross margin remained stable at 54.5%.

The Q1 FY26 note also mentions an interim dividend of ₹0.50 per share, with an estimated cash outflow of about ₹169.1 crore. Another section says the company remained net debt-free during the quarter and held free cash of ₹514.90 crore. It also attributes the quarter’s volume decline to unusually high and unseasonal rainfall in India, with India volumes down 7.1% and international volumes up 15.1%, and South Africa posting 16.1% growth.

Key datapoints investors are tracking

The latest Reuters-reported quarter shows a combination of profit growth, revenue growth, and volume expansion, alongside supportive finance costs. In the broader dataset, investors also have visibility on cash and debt levels, promoter holding, ROE, and multi-year growth rates. Dividend actions and cash outflow estimates provide an additional datapoint on capital returns. International market performance, including Africa and South Africa, appears repeatedly as a growth lever in the provided information.

Conclusion

Varun Beverages’ December-quarter update highlighted profit growth driven by stronger volumes, higher revenue, and lower finance costs, with additional support from other income and currency movements. Alongside this, the broader set of quarterly updates in the material shows investors also tracking margins, dividends, cash levels, and the India versus international volume mix. Future performance monitoring, based on the provided data, is likely to remain centred on volumes, cost of borrowing, and how quickly newly added capacity converts into incremental sales.