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Varun Beverages reports 15% profit rise as India's beverage market expands
Varun Beverages Ltd, the largest PepsiCo franchise bottler in India, posted a 15.07% rise in consolidated net profit to Rs 1,525.35 crore for the June quarter of 2026. Revenue from operations grew 20.76% to Rs 8,650.57 crore, while consolidated sales volume increased 19.8% year‑on‑year to 466.7 million cases. Volume growth was driven by a 14.4% increase in India and a 38.4% rise in international territories, including 11.8 million cases contributed by the recent acquisition of Twizza in South Africa.
The earnings were accompanied by a 44‑basis‑point improvement in gross margin to 55% and a 17.2% rise in EBITDA to Rs 2,343.04 crore, despite lower margins from the Twizza integration. Chairman Ravi Jaipuria attributed the performance to strong volume growth and a favorable product mix.
Separately, industry observers note that India's premium beverage segment is undergoing a transformation, with brands such as Smoke Lab and Mohulo Gin emphasizing flavor innovation, limited‑edition releases, and storytelling to meet evolving consumer preferences. This shift reflects a broader move in the Indian food‑and‑beverage sector toward experiential products and differentiated taste profiles.
Entities
Mohulo Gin · Ravi Jaipuria · Smoke Lab · Twizza · Varun Beverages Ltd
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] International volume growth included 11.8 million cases from the acquisition of Twizza in South Africa. www.news18.com
- [○ 1 SOURCE] EBITDA increased 17.2% to Rs 2,343.04 crore in Q2 2026. www.news18.com
- [○ 1 SOURCE] Varun Beverages' gross margin improved by 44 basis points to 55% in Q2 CY2026. www.news18.com
- [○ 1 SOURCE] Varun Beverages reported a 15.07% increase in consolidated net profit to Rs 1,525.35 crore for the June quarter of 2026. www.news18.com
- [○ 1 SOURCE] Revenue from operations grew 20.76% to Rs 8,650.57 crore in the June quarter of 2026. www.news18.com
- [○ 1 SOURCE] Brands such as Smoke Lab and Mohulo Gin cite consumer demand for new taste profiles as a driver of product development. www.news18.com
- [○ 1 SOURCE] Consolidated sales volume increased 19.8% year‑on‑year to 466.7 million cases in Q2 CY2026. www.news18.com
- [○ 1 SOURCE] India's premium beverage market is shifting toward flavor innovation and limited‑edition releases. www.news18.com