Varun Beverages Q3 net profit jumps 14% YoY driven by strong volume growth in India; declares third interim dividend

The beverage bottling firm’s revenue from operations for the quarter ended September 30, 2026, rose 33% to ₹6,816 crore as against ₹5,112 crore in the year-ago period.

The company also reported an increase in operational performance in Q3 as its operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), surged 25% to ₹1,427 crore from ₹1,140 crore in the same period of the previous fiscal year.

Its operating profit margin, also known as EBITDA margin, contracted to 20.94% from 22.30% in the corresponding period last year.

The margin was primarily due to higher packaging material costs, including preforms, shrink films, closures, and cans, driven by geopolitical disruptions, the company said.

Varun Beverages said its margins were also impacted by higher sales of non-beverage products like preforms, caps, etc. in India, which increased by 104% during the quarter and has a higher COGS, impacting gross margins by about 100 bps in India.

For nine months ended 2026, the company reported a 23.3% YoY increase in revenue to ₹21,814.55 crore, while EBITDA rose 19.9% to ₹5,274.58 crore and profit after tax (PAT) increased 15.5% to ₹3,202.30 crore.

The company follows January to December as its financial year.

Dividend details

Varun Beverages’ board of directors also declared a third interim dividend of ₹0.50 per equity share of face value ₹2 for the financial year 2026.

The company has fixed November 5, 2026, as the record date to determine shareholders eligible for the dividend. The payment will be made from November 7, 2026.

Sales volume

Varun Beverages’ consolidated sales volume grew by 28.7% to 354.4 million cases in Q3 CY26 from 275.3 million cases in Q3 CY25, driven by robust volume growth of 22.5% in India and 39.9% in international territories.

Further, the consolidated beverage realisation 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.

“In India, we continued to witness healthy volume growth during the quarter, extending the positive trend seen since May. This performance was supported by our extensive distribution network, expanded manufacturing capacities, and ongoing investments in chilling infrastructure,” said Varun Jaipuria, Executive Vice Chairman, Varun Beverages.

“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,” Jaipuria added.

Following the earnings, Varun Beverages shares were trading at ₹402.15 apiece on the National Stock Exchange, declining 3.05%.