Varun Beverages LimitedQ1 FY27 Results & Financial Update
Varun Beverages Limited: Q1 FY27 consolidated results and company financials – revenue ₹8,650.57 Cr, PAT ₹1,525.36 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceCurrent reported figures.Change figures appear when a comparable reported period is available.
Find an answer
Ask this result
Chart · Market context
Varun Beverages price & chart
Market price₹429.25
1Y return—Price return
Loading market chart…
TradingView Lightweight Charts™ · Copyright © 2025 TradingView, Inc.TradingView
Market chartPrice chart temporarily unavailableThe price chart could not be loaded right now. The reported financial results remain available above.
Spotted a factual error?Tell us the number, date or statement and we will re-check the underlying records and calculations.Report an error
Quarterly Results AnalysisExplore Varun Beverages Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
During the quarter ended June 30, 2026, Varun Beverages Limited delivered a consolidated revenue from operations of INR 8,650.57 crore and net profit after tax of INR 1,525.355 crore.
Consolidated sales volumes recorded strong growth, supported by robust demand during the peak summer season across core Indian territories and solid momentum in international operations, including contributions from newly consolidated acquisitions.
In India, healthy volume growth was experienced from March onwards except for the month of April which remained relatively flat, while international markets benefited from expanded manufacturing footprints and route-to-market integrations.
Gross margins remained resilient due to proactive raw material stocking strategies and a higher share of low-sugar and sugar-free product lines across the portfolio.
Operating performance absorbed higher employee benefits and depreciation expenses resulting from the ongoing commissioning of new plants and the integration of international subsidiary assets.
Finance costs increased during the period following the acquisition of Twizza in South Africa, while surplus cash holdings in India continued to generate interest income reflected under other income.
The Board of Directors approved a second interim dividend of INR 0.50 per equity share of face value INR 2 each for the financial year.
01 · Business model
What does Varun Beverages do?
Varun Beverages Limited is a key player in the global beverage industry and one of the largest franchisees of PepsiCo outside the United States, with operations spanning 10 countries and distribution rights in 4 additional countries.
The company produces, packages, and distributes a wide selection of carbonated soft drinks, non-carbonated beverages, and packaged drinking water under trademarks owned by PepsiCo, alongside select own-branded offerings.
VBL operates a robust execution and distribution model comprising state-of-the-art manufacturing plants, extensive cold chain and warehousing infrastructure, and an experienced direct-to-retail sales force.
The business follows a calendar financial year running from January 1st to December 31st as approved by the Company Law Board.
02 · Historical context
What shaped the business before this quarter
Since the 1990s, VBL has expanded its association with PepsiCo over three decades to cover 26 States and 6 Union Territories in India alongside multiple international geographies.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Revenue from operations | ₹8,650.57 Cr |
| Total income | ₹8,754.95 Cr |
| Profit before tax | ₹1,981.46 Cr |
| Profit after tax | ₹1,525.36 Cr |
| EPS | ₹4.50 |
Financial interpretation
What the reported numbers mean
Profit after tax represented 17.6% of reported quarterly operating revenue. This is a calculated net-profit-to-sales ratio, not a company-reported operating margin. It measures the outcome after expenses and tax; it does not, by itself, establish how margins changed versus another period.
Profit before tax was equivalent to 22.9% of quarterly operating revenue. The distinction between pre-tax and post-tax profit matters when interpreting earnings; neither ratio identifies an underlying cost driver without a properly matched comparative period.
Total income exceeded operating revenue by ₹104.38 crore. This is the disclosed difference between the two lines, not incremental sales. The distinction matters when assessing how much of the quarter’s reported income came from the operating top line.
Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
International revenue streams were further augmented by volume contributions from the newly acquired Twizza business in South Africa.
What drove margins
Early stocking of key raw materials and optimization in sugar consumption helped sustain gross margins despite high inflationary pressures in raw material inputs.
A higher contribution from low-sugar and sugar-free formulations supported product-level gross realizations and margin stability.
Depreciation and finance expenses increased due to recent plant capitalization and debt associated with international subsidiary acquisitions.
05 · Demand, customers & order book
Where demand is coming from
Market availability was strengthened through extensive placement of visi-coolers and deep retail penetration across urban and rural outlets.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Core CSD brands such as Pepsi, Mountain Dew, Sting, and 7Up continued to anchor volume growth across domestic and international markets.
Geography and market mix
India represented the primary revenue generator, supported by expanded manufacturing capacity and chilled distribution infrastructure.
International territories in Africa and South Asia delivered solid growth, spearheaded by the operational integration of Twizza in South Africa.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
The company operated a network of state-of-the-art production facilities across domestic and international territories to support peak seasonal production.
Projects, capex and execution
Capital expenditure during the half-year period included brownfield expansions in India, snacks manufacturing facilities in Zimbabwe, and market infrastructure such as visi-coolers and vehicles.
08 · Strategy & new businesses
How the company is trying to change its growth mix
The company consolidated Twizza Proprietary Limited in South Africa, entered a binding agreement to acquire Crickley Dairy in South Africa, and partnered with Asahi Group Holdings to introduce the CALPIS brand in India.
09 · Reported developments
What changed operationally
The company extended its exclusive bottling and trademark license agreement with PepsiCo in India up to April 30, 2049, while removing operating restrictions that previously limited VBL to a special purpose vehicle.
10 · Pressure points & risks
What is not going smoothly
Higher freight, distribution, and transportation expenses partially offset operational efficiencies achieved through volume growth.
11 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Inventories and trade receivables expanded in line with seasonal business ramp-up and preparation for summer demand.
Capital allocation & funding
Long-term borrowings increased following the financing of international acquisitions, while the company's long-term bank loan rating was reaffirmed at CRISIL AAA/Stable.
12 · Beyond the numbers
What changed beyond the numbers
Reported update
Renewable Energy and Sustainability
The company continued advancing its sustainability agenda, increasing solar and renewable energy share across facilities and expanding eco-friendly packaging initiatives.
13 · Key Q&A
The quarter, answered directly
What does Varun Beverages do?
Varun Beverages Limited is a key player in the global beverage industry and one of the largest franchisees of PepsiCo outside the United States, with operations spanning 10 countries and distribution rights in 4 additional countries.
What is the clearest takeaway from Q1 FY27?
During the quarter ended June 30, 2026, Varun Beverages Limited delivered a consolidated revenue from operations of INR 8,650.57 crore and net profit after tax of INR 1,525.355 crore.
What drove revenue or demand?
International revenue streams were further augmented by volume contributions from the newly acquired Twizza business in South Africa.
What mattered most for margins or profitability?
Early stocking of key raw materials and optimization in sugar consumption helped sustain gross margins despite high inflationary pressures in raw material inputs.
What changed operationally beyond the headline numbers?
The company operated a network of state-of-the-art production facilities across domestic and international territories to support peak seasonal production.
What are the main pressure points disclosed for the quarter?
Higher freight, distribution, and transportation expenses partially offset operational efficiencies achieved through volume growth.
14 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
Starting point
Build your own next-quarter scenario
Reported values are prefilled where a comparable basis is available. Otherwise, the field starts at 0. You can overwrite every field.
Example: enter 10 for 10% revenue growth. Enter -100 for a 1 percentage-point margin decline.
Scenario output
Scenario revenue / income₹0 cr
Scenario profit after tax₹0 cr
Profit change vs base₹0 cr (0%)
Scenario margin0%
Growth needed to keep profit flat after this margin move0%
The calculator holds the selected margin basis constant except for the basis-point adjustment you enter. It does not estimate tax, finance cost, dilution, working capital, valuation or share price.
15 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Acquisition Integrations: Monitor the operational integration and financial performance of Twizza and upcoming transactions in African markets.
Learn the metrics
Need the concepts first?
Use Nivata’s plain-English guides to understand the accounting terms used in this brief before interpreting them.