PepsiCo Partner Varun Beverages’ Revenue Rises 20%
PepsiCo bottler Varun Beverages reports 20% revenue growth in Q2, driven by strong India demand, global expansion and Twizza acquisition.
SociapaHQ
Varun Beverages Ltd (VBL), a PepsiCo bottling partner, posted a consolidated revenue growth of 20.4% year-on-year in the second quarter of calendar year 2026, backed by robust beverage demand in India and growth in all international markets, including its South African acquisition Twizza.
Revenue from operations (excluding excise duty and GST) rose to ₹8,451.2 crore for the April-June quarter against ₹7,017.3 crore in the year-ago period.
The company’s consolidated sales volume rose 19.8% to 46.6 crore cases against 39 crore cases a year ago. “India volumes were up 14.4% and international markets grew 38.4% with Twizza contributing 11.8 million cases in the quarter post-acquisition.
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Strong Performance:
Demand for beverages in India remained buoyant during the peak season with volumes growing in the twenties from March onwards except for the month of April when it was flat, VBL said. India overall volume growth was 14.4% for the quarter.
Gross margins increased 44 basis points to 55% driven by higher contribution from international operations. The company said lower sugar consumption on the back of higher sales of low- and no-sugar beverages, besides early procurement of raw materials helped manage cost pressures in India.
EBITDA increased 17.2% YoY to ₹2,343 crore, compared to ₹1,998.7 crore in the previous year. However, EBITDA margin fell to 27.7% because of the lower margin nature of Twizza’s business.
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Net profit grew 15.1% to ₹1,525.3 crore versus ₹1,325.5 crore in the year-ago quarter, aided by volume growth in domestic and international markets.
The company reported higher depreciation and finance costs in the quarter due to commissioning of new manufacturing facilities in India and debt related to Twizza acquisition.
Varun Beverages Chairman Ravi Jaipuria said the company posted robust growth across markets on the back of higher volumes, improved realisations and investments in manufacturing capacity and distribution infrastructure.
VBL has extended the exclusive bottling and trademark licence agreement with PepsiCo in India till April 2049, Jaipuria said. The company also removed the earlier restriction of acting only as a special purpose vehicle for the business of PepsiCo, which will provide greater flexibility for future growth opportunities.
