VBL Q2 revenue climbs 20% to ₹8,451 cr, profit ₹1,525 cr
Domestic volumes up 14.4% while international surges 38.4% on Twizza acquisition. Board declares ₹0.50 interim dividend.
— 6 earlier stories on Varun Beverages Ltd. →What's new
- Revenue up 20.4% YoY to ₹8,451 cr, led by 19.8% volume growth to 466.7M cases.
- Net profit rises 15.1% to ₹1,525 cr; India volumes +14.4%, international +38.4%.
- Interim dividend of ₹0.50/share declared, in line with earlier announcement.
Why this matters
Varun Beverages continues to deliver double-digit volume growth, with the Twizza acquisition giving a strong international boost. But at a P/E of 54, the market already prices in this execution; the real test is whether margins hold as raw costs and expansion spend rise.
What we're watching
- How quickly the new PepsiCo bottling rights boost revenue mix.
- The CALPIS launch in H2 2026 and its margin profile.
- Whether international growth sustains above 30% as African integration deepens.
The full read
A clean quarter. Revenue rose 20.4% to ₹8,451 cr, net profit climbed 15.1% to ₹1,525 cr, and volumes expanded 19.8% to 466.7 million cases — with India up 14.4% and international surging 38.4% on the Twizza acquisition. The dividend is ₹0.50 per share. Scheduled earnings, strong but expected. At 54x trailing earnings, the stock already prices in this execution; the real test will be whether margins hold as raw costs rise and whether the CALPIS launch or revised PepsiCo bottling agreement provide incremental upside. Execution is good. The market is paying for it.
Questions answered
- How did India volumes perform relative to the 19.8% consolidated average?
- India volumes grew 14.4%, lagging the consolidated average of 19.8%, because international volumes surged 38.4% — pulled up by the Twizza acquisition in South Africa.
- What was the net profit margin for the quarter?
- Net profit margin came in at 18.0% (₹1,525 cr on ₹8,451 cr revenue), down slightly from 18.9% a year earlier, reflecting higher costs or acquisition-related expenses.
- How does the interim dividend compare with prior payouts?
- The ₹0.50 per share interim dividend is consistent with what the board announced earlier in the year. It matches the same per-share amount declared in Q2 CY2025.
- What drove the 38.4% international volume growth?
- The jump is mainly due to the consolidation of Twizza, a South African beverage company acquired earlier in 2026. Organic growth in existing markets also contributed but is not separately broken out.
Varun Beverages Ltd.
Latest quarter · Mar 2026
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Story so far
All notes on VBL →- 28 Jul 2026 · 12:25 PM IST VBL Q2 revenue climbs 20% to ₹8,451 cr, profit ₹1,525 cr
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