Q2 2026 Varun Beverages Ltd Earnings Call Transcript

Jul 28, 2026 / 09:00 AM GMT

Release Date Price: ₹430 (-7.43%)

Transcript

Key Points

Positve

Varun Beverages Ltd (NSE:VBL) reported a strong performance with a 19.8% increase in consolidated sales volume and a 20.4% increase in net revenue from operations.
The company extended its exclusive bottling and trademark license agreement with PepsiCo in India until April 2049, enhancing long-term partnership and operational flexibility.
International business maintained strong momentum, with significant contributions from Twiza in South Africa and an agreement to acquire Devyani Foods Industries Kenya Limited.
The company declared an interim dividend of 25% of face value, resulting in a total cash outflow of approximately Rs 1,691 million.
Varun Beverages Ltd (NSE:VBL) remains net debt-free in India, with surplus cash of Rs 14,941 million, and has a strong credit rating reaffirmed by Crystal AAA Stable.

Negative

EBITDA margin declined by 76 basis points year-on-year, primarily due to the consolidation of the Twiza business, which operates at lower margins.
Depreciation increased by 33.6% due to the commissioning of new plants in India and the acquisition of Twiza in South Africa.
Finance costs rose by 55.8%, mainly due to the Twiza acquisition.
The company faced challenges in April due to the El Nino effect, impacting growth during that month.
There was a temporary dip in the energy drinks category due to regulatory changes, although the company expects recovery as new labels are introduced.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

VARB.NS - Varun Beverages Ltd
Q2 2026 Varun Beverages Ltd Earnings Call
Jul 28, 2026 / 09:00AM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day and welcome to the Varun Beverages Limited Earnings Conference Call.

As a reminder, all participant clients will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during the call, please signal an operator by pressing star then zero on your touch tone phone.

Please note that this conference is being recorded.

I now hand the conference over. To Mr. Anu Pujari from CDR India.

Thank you and over to you, sir.

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Unidentified_2 [2]
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