Varun Beverages net profit increases 15 per cent to Rs 1,525 crore in June quarter

Varun Beverages Ltd PepsiCos largest franchise bottler on Tuesday reported 1507 per cent increase in consolidated net profit at Rs 152535 crore for June quarter of 2026 helped by a doubledigit volume growth in India and international marketsThe company which follows the calendar year as its financial year had posted a net profit of Rs 132548 crore in AprilJune period a year ago according to a regulatory filing from Varun Beverages Ltd VBLRevenue from operations was up 2076 per cent to Rs 865057 crore in June quarter 2026 VBLs consolidated sales volume in the June quarter grew by 198 per cent yearonyear to 4667 million cases in Q2 CY2026 the company said in its earnings statementThis was driven by a volume growth of 144 per cent in India and 384 per cent in international territories While International volumes include 118 million cases during the quarter from the acquisition of Twizza in South Africa realisation per case beverages improved by 12 per cent at the consolidated level with improved realisations in international territoriesAccording to VBL an increase of 151 per cent in PAT was driven by strong volume growth in India and International territories Its gross margins improved by 44 basis points to 55 per cent in Q2 CY2026 supported by a higher mix of International businessIn India early stocking of key raw materials and savings in sugar consumption with higher mix of low sugarno sugar products helped in maintaining gross margins despite the high inflationary raw material environment said VBL The EBITDA increased by 172 per cent to Rs 234304 crore in Q2 2026 from Rs 199877 crore in Q2 2025However its EBITDA margins declined by 76 basis points to 277 per cent in Q2 CY2026 due to consolidation of Twizza business which currently operates at lower margins it said Total expenses of VBL were up 23 per cent to Rs 677349 crore in the June quarterTotal consolidated income which includes other income in the June quarter was at Rs 875495 crore up 209 per cent On standalone basis which primarily includes India sales VBLs revenue from operation was up 13 per cent to Rs 599620 crore In the first half H1 VBLs revenue from operations grew 194 per cent YoY to Rs 1502542 croreCommenting on the results Chairman Ravi Jaipuria said In India we saw healthy volume growth in twenties since the onset of season ie from March onwards except for the month of April which was about flat resulting in overall volume growth for the quarter of 144 per centVBLs expanded manufacturing footprint extensive distribution network and continued investments in chilling infrastructure continued to drive growthMeanwhile in a separate filing VBL said it board has approved a second interim dividend of 50 paise per equity share for 2026 of the nominal value of Rs 2 eachOver the outlook Jaipuria said Looking ahead we remain confident in the longterm growth potential across our markets supported by favourable demographics rising disposable incomes and increasing consumption of packaged beveragesShares of Varun Beverages Ltd on Tuesday were trading at Rs 43375 apiece on BSE down 661 per cent from the previous closeThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever