Gurgaon, October 30, 2026: Varun Beverages Limited (BSE: 540180, NSE: VBL), a prominent player in the beverage industry, has announced robust financial results for the third quarter and nine months ending September 30, 2026. The company reported a significant 33.2% year-on-year increase in revenue for Q3 2026, reaching Rs. 66,075.6 million, driven by strong volume growth both domestically and internationally.
The consolidated sales volume surged by 28.7% to 354.4 million cases in Q3 2026, with India recording a 22.5% increase, and international territories witnessing an impressive 39.9% rise. The acquisition of Twizza in South Africa contributed 15.3 million cases to the international volume. Despite geopolitical disruptions leading to higher packaging costs, the company managed to achieve a 25.1% increase in EBITDA to Rs. 14,267.1 million. However, the EBITDA margin saw a slight decline of 140 basis points to 21.6%, primarily due to gross margin contraction.
Profit after tax (PAT) rose by 13.5% to Rs. 8,305.9 million, bolstered by the robust volume growth. The quarter also saw increased depreciation and finance costs due to the acquisition of Twizza, while other income decreased by 18.8% year-on-year. For the nine months of 2026, revenue grew by 23.3% to Rs. 218,145.5 million, with EBITDA and PAT increasing by 19.9% and 15.5%, respectively.
Varun Beverages continued its strategic expansion, incorporating KIVA Spirits and Company Limited to explore ready-to-drink and alcoholic beverages. The company also entered an exclusive distribution agreement with Mondelez in Zimbabwe, further broadening its product offerings. The merger of Twizza into Bevco in South Africa was completed, with expected operational synergies in the coming quarters.
Analysts view Varun Beverages’ performance as a testament to its strategic initiatives and market expansion efforts. The company’s focus on high-value categories and premium offerings, alongside its international growth strategy, positions it well for sustained growth. Despite challenges from rising costs, the company’s operational leverage and strategic acquisitions are expected to support its long-term profitability.
