Varun Beverages, one of the largest PepsiCo franchise bottlers outside the USA, heads into its seasonally strongest quarter with volume momentum running at double digits but a cost backdrop that has turned sharply inflationary. The print will speak to two things above all: whether the EBITDA margin bridge absorbs the quarter's sugar, PET and freight spike, and how much Twizza's lower-margin consolidation continues to dilute the consolidated margin.
| Results date | October 30, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 84,512.3 Mn (+20.4% YoY) |
| Previous quarter PAT | Rs. 15,253.6 Mn (+15.1% YoY) |
| Previous quarter EBITDA margin | 27.7% (-76 bps YoY) |
| Net debt (latest quarter) | ~Rs. 3,730 Mn as of Jun 30, 2026, primarily from the Twizza acquisition |
| Market cap | Rs. 133,642.36 Cr |
| CMP | Rs. 395.1 |
Varun Beverages Ltd is scheduled to announce its Q2 FY 2026-2027 results on October 30, 2026, as intimated to the BSE and NSE.
With its previous results announced on July 28, 2026, the company declared a 2nd interim dividend of Rs. 0.50 per share (25% of the Rs. 2 face value), with a record date of August 1, 2026 and payment from August 4, 2026, a total cash outflow of ~Rs. 1,691 Mn. Management has separately indicated the dividend payout might increase if volumes grow significantly.
The quarter tests whether Varun Beverages can hold its margin bridge while demand momentum stays strong: consolidated volumes grew 19.8% YoY in the last reported quarter with India at 14.4%, but the cost picture has deteriorated since. Domestic consumption-linked gross GST grew about 9-10% YoY in each of July, August and September, supporting the demand flow, though the monsoon at 87% of LPA — with August at 84% and September at 92% — keeps the weather caveat on the double-digit India volume guidance live. On costs, Indian retail sugar at Rs. 62.57/kg on September 2 was up 27% versus the prior month, PET resin stayed firm-to-rising, and Brent climbed from about $89 in mid-August to $102.22 by September 21, landing on the transportation and distribution line management has already flagged as the pressure that cannot be stocked. Offsets include the early-stocked raw-material inventory of Rs. 3,989.7 Cr, the low/no-sugar mix at ~73% of H1 volumes, and the Delhi High Court's stay of the FSSAI label order for Sting. Twizza's margin dilution (-76 bps consolidated in the prior quarter against India +38 bps) continues for a second full quarter, and finance cost (+55.8% last quarter) and depreciation (+33.6%) should keep outgrowing revenue on the Twizza debt and new-plant base, with DFIKL Kenya consolidating from around August 1, 2026 and the Twizza-Bevco merger completed August 17, 2026.
Performance vs guidance tracking: Where the company stands against its stated CY2026 targets:
Strategic updates to expect on the call
Risk follow-ups
Metrics in focus
Management has said the Rs. 10 price point is not a significant focus due to profitability concerns, with month-on-month growth exceeding 20% without it. The 400 ml pack at Rs. 20 drives consumer recruitment, working out to Rs. 10 per person when two people share.
Management said international growth excluding Twizza was above 25%, with all countries in the African region firing except Zambia, which is small and slightly slower. Including Twizza, international volumes grew 38.4% YoY in the June 2026 quarter.
Management has guided for international EBITDA margins to converge toward India levels within the next couple of years, sooner than its prior 4-5 year estimate. It pointed to Twizza's structurally advantageous setup, including owned land and buildings, dedicated distribution vehicles and solar power.
Yes, so far — India volumes grew 14.4% YoY in the June 2026 quarter, above the double-digit CY2026 target, though management has conditioned the guidance on reasonable weather. April was about flat before growth ran in the twenties from March onwards, and the deficient August-September monsoon is the swing variable.