Varun Beverages, one of the largest global franchisees of PepsiCo outside the United States, reported its earnings for the third quarter of CY27 on Friday, with its net profit and revenue beating Street estimates.
The company reported a consolidated net profit of Rs 828 crore in the third quarter, registering a growth of 13.7% from Rs 727.5 crore in the year-ago period. The bottomline was higher than NDTV Profit estimates of Rs 791 crore.
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Revenue in Q3 grew 33.3% to Rs 6,815.58 crore from Rs 5,112.43 crore, year-on-year (YoY). Revenue also beat estimates of Rs 6,078 crore.
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EBITDA during the September quarter increased 32.2% YoY to Rs 1,507 crore, and against expectations of Rs 1,386 crore.
EBITDA margin moderated by 140 bps YoY to 21.6% in Q3CY2026, primarily due to gross margin contraction, partially offset by operating leverage from robust volume growth in India and international territories.
Consolidated sales volume grew by 28.7% to 354.4 million cases in Q3 CY2026 from 275.3 million cases in Q3 CY2025, driven by robust volume growth of 22.5% in India and 39.9% in international territories.
Consolidated beverage realization per case improved by 2.2% at the consolidated level supported by a 0.5% increase in India on account of growth in high value categories and further launch of premium categories (Ad Rush, Evervess mixers range), calibrated discounting and an efficient price pack architecture, Varun beverages said.
The company added that it was also taking measured steps towards diversifying its business into adjacent categories.
“Looking ahead, our focus will remain on driving growth across our existing markets, supported by the investments we have made over recent years. Alongside this, we will selectively pursue opportunities to broaden our business, while maintaining a clear emphasis on profitability and long-term value creation,” said Varun Jaipuria, Executive Vice Chairman, Varun Beverages.
Varun Beverages Dividend
The board of directors of Varun Beverages also approved the payment of third interim dividend of Rs 0.50 paise per share of face value of Rs 2 each for the Financial Year 2026.
The company has fixed Thursday, November 5, 2026, as the ‘Record Date' for the purpose of determining entitlement of equity shareholders for receipt of the interim dividend.
Varun Beverages dividend will be paid on and from November 7, 2026.
At 12:05 PM, Varun Beverages share price was trading 1.87% lower at Rs 406.10 apiece on the BSE.
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