Varun Beverages reported impressive Q1 FY27 financial performance with consolidated revenue growing 18.34% to ₹67,215.37 million and net profit increasing 20.16% to ₹8,787.13 million. The company strengthened its international presence through strategic acquisitions in South Africa, including Twizza Proprietary Limited for ZAR 2,053 million, while the Board approved an interim dividend of ₹0.50 per equity share.

Varun Beverages Reports Strong Q1 FY27 Performance with 18.34% Revenue Growth

Varun Beverages Limited has delivered impressive financial results for the first quarter of fiscal year 2027, showcasing strong operational performance and strategic expansion initiatives. The company announced its unaudited financial results for the quarter ended March 31, 2026, during a board meeting held on April 27, 2026.

Financial Performance Overview

The company demonstrated robust growth across key financial metrics during Q1 FY27. Consolidated revenue from operations reached ₹67,215.37 million, marking an 18.34% increase from ₹56,800.26 million recorded in the corresponding quarter of the previous year.

Financial Metric Q1 FY27 (₹ million) Q1 FY26 (₹ million) Growth (%) Revenue from Operations 67,215.37 56,800.26 +18.34% Total Income 67,650.65 57,080.84 +18.52% Net Profit After Tax 8,787.13 7,313.58 +20.16% Basic EPS (₹) 2.58 2.15 +20.00%

Profitability and Margins

Net profit after tax showed strong momentum, increasing by 20.16% to ₹8,787.13 million compared to ₹7,313.58 million in Q1 FY26. The company's profit before tax stood at ₹11,631.89 million, up from ₹9,778.08 million in the previous year's corresponding quarter. Basic earnings per share improved to ₹2.58 from ₹2.15, reflecting the enhanced profitability on a per-share basis.

Standalone Performance

On a standalone basis, Varun Beverages reported revenue from operations of ₹45,005.54 million for Q1 FY27, compared to ₹40,525.28 million in Q1 FY26. Standalone net profit after tax reached ₹7,879.07 million, up from ₹6,780.60 million in the corresponding quarter of the previous year.

Standalone Metrics Q1 FY27 (₹ million) Q1 FY26 (₹ million) Growth (%) Revenue from Operations 45,005.54 40,525.28 +11.05% Net Profit After Tax 7,879.07 6,780.60 +16.20% Basic EPS (₹) 2.33 2.01 +15.92%

Strategic Acquisitions and Expansion

During the quarter, the company completed significant strategic acquisitions to strengthen its international presence. The Beverage Company Proprietary Limited, a subsidiary in South Africa, acquired 100% share capital of Twizza Proprietary Limited for an enterprise value of ZAR 2,053 million (₹11,398 million), making it a step-down subsidiary effective March 18, 2026. Twizza is engaged in manufacturing and distribution of branded non-alcoholic beverages.

Additionally, the South African subsidiary entered into a binding agreement to acquire 100% stake in Crickley Dairy Proprietary Limited for an enterprise value of ZAR 238.00 million (₹1,314.68 million), subject to regulatory approvals. The acquisition is expected to complete by September 30, 2026.

Dividend Declaration and Board Decisions

The Board of Directors approved an interim dividend of ₹0.50 per equity share for financial year 2026. The dividend will be paid on 338,20,94,394 equity shares of nominal value ₹2 each, with May 1, 2026 fixed as the record date and payment scheduled for May 5, 2026.

Dividend Details Specification Interim Dividend per Share ₹0.50 Record Date May 1, 2026 Payment Date May 5, 2026 Total Equity Shares 338,20,94,394

Operational Highlights

The company continues to follow a calendar year as its financial year, as approved by the Company Law Board. The business activities predominantly fall within manufacturing and sale of beverages, operating across India and international markets. The seasonal nature of beverage sales contributes to quarterly performance variations, with the first quarter typically representing a strong period for the industry.

Varun Beverages has delivered exceptional financial performance in its fourth quarter results, showcasing robust growth across key profitability and revenue metrics. The beverage company's latest quarterly results demonstrate sustained growth momentum and improved operational efficiency across all major financial parameters.

Comprehensive Financial Performance

The company's Q4 results highlight strong performance across multiple financial parameters. Revenue reached ₹67.2 billion compared to ₹56.8 billion in the corresponding quarter of the previous year, representing a year-on-year growth of 18.3%. Consolidated net profit reached ₹8.7 billion, representing a substantial increase from the ₹7.3 billion recorded in the same quarter of the previous year, translating to a year-on-year growth rate of 19.2%.

Financial Metric Q4 Current Year Q4 Previous Year Growth (%) Revenue ₹67.2 billion ₹56.8 billion +18.3% Consolidated Net Profit ₹8.7 billion ₹7.3 billion +19.2% EBITDA ₹15.3 billion ₹12.6 billion +21.4% EBITDA Margin 22.75% 22.25% +50 bps

EBITDA Performance and Margin Expansion

Varun Beverages demonstrated strong operational performance with EBITDA reaching ₹15.3 billion in Q4, compared to ₹12.6 billion in the corresponding quarter of the previous year. This represents a robust year-on-year growth of 21.4%, indicating improved operational efficiency and cost management.

The company also achieved margin expansion, with EBITDA margin improving to 22.75% from 22.25% year-on-year. This 50 basis points improvement in margin reflects the company's ability to optimize operations while maintaining profitability despite revenue growth.

Growth Analysis

The comprehensive financial performance showcases Varun Beverages' strengthened market position in the beverage industry. The ₹10.4 billion absolute increase in revenue, ₹1.4 billion absolute increase in net profit, and ₹2.7 billion increase in EBITDA demonstrate the company's enhanced financial capabilities during the quarter.

This quarterly performance reflects effective management strategies, operational excellence, and strong business execution. The consistent growth across revenue, profit, and EBITDA combined with margin expansion indicates the company's ability to drive both top-line and bottom-line improvements simultaneously.

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