Varun Beverages locks in PepsiCo franchise until 2049, posts 20% revenue growth
A **20.4%** revenue jump to **₹8,451 cr** and **19.8%** volume growth in Q2 CY2026, with the PepsiCo franchise extended to **2049** and the SPV restriction removed. International volumes surged **38.4%** on the Twizza acquisition.
— 6 earlier stories on Varun Beverages Ltd. →What's new
- PepsiCo franchise for India extended to April 2049; SPV restriction removed.
- Alliance with Asahi to launch Calpis dairy beverage in India.
- Kenyan subsidiary to buy Devyani Food Industries' dairy & juice business for USD 32M.
Why this matters
The franchise extension removes a structural constraint and secures the core business for over two decades. The Calpis launch and Kenya acquisition diversify beyond carbonated soft drinks into higher-margin dairy and expand Africa exposure, where volumes grew 38.4% this quarter.
What we're watching
- Calpis rollout timeline and margin contribution.
- Integration of the Devyani Foods Kenya business.
- EBITDA margin trajectory as international mix shifts lower.
The full read
Varun Beverages delivered a strong quarter: revenue up 20.4% to ₹8,451 crore, volume growth of 19.8%, and PAT up 15.1% to ₹1,526 crore. International volumes, aided by the Twizza buy, jumped 38.4%. The three strategic announcements (the PepsiCo franchise extension to 2049 with the SPV restriction removed, the Calpis launch via Asahi, and the USD 32 million Kenya acquisition) are incremental but structurally positive. The franchise lock-in secures the core business; the new moves push into dairy and deeper into Africa. The numbers are in line with a seasonal recovery, but the long-term direction is clearer.
Questions answered
- What is the new PepsiCo franchise term for India?
- The exclusive bottling franchise has been extended to April 2049, and the requirement to operate solely as an SPV for PepsiCo's business has been removed.
- How much is the Devyani Foods Kenya acquisition?
- The acquisition value is USD 32 million, and it adds a dairy and juice business to Varun Beverages' Kenyan operations.
- What drove the volume growth in Q2 CY2026?
- India volumes rose 14.4%, while international volumes surged 38.4%, the latter aided by the first full quarter of the Twizza acquisition in South Africa.
- What interim dividend did the board declare?
- An interim dividend of ₹0.50 per share was declared, consistent with the company's payout policy.
Varun Beverages Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on VBL →- 28 Jul 2026 · 12:23 PM IST Varun Beverages locks in PepsiCo franchise until 2049, posts 20% revenue growth
- today VBL locks in PepsiCo until 2049, Q2 revenue up 20%
- today VBL Q2 revenue climbs 20% to ₹8,451 cr, profit ₹1,525 cr
- today Varun Beverages rides summer boom to 24% revenue growth
- 22d ago Varun Beverages enters Kenya with $32M promoter-group acquisition