Varun Beverages Q1 results: Profit jumps 20% to ₹878 crore, revenue up 18% YoY; interim dividend declared

The company follows the calendar year format for reporting its financial results.

NSE filings showed that Varun Beverages recorded a 20% rise in its first quarter net profit to ₹878 crore, compared year-on-year with ₹731 crore in the same period, according to the consolidated financial statements.

The company’s revenue from core operations rose 18% to ₹6,721 crore in the March quarter for the calendar year ended 2025-26, compared to ₹5,680 crore in the same period a year ago, according to filing data.

The consolidated financial statements also showed that the company’s input costs for the quarter increased 18% YoY to ₹3,152 crore, compared to ₹2,671 crore in the same period a year ago.

The data also showed that Varun Beverages’ earnings per share (EPS) rose to ₹2.58 apiece in the March quarter, compared to ₹2.15 per share at the same period of the previous financial year.

Margins improves

The NSE filing showed that Varun Beverages’ gross margins improved by 62 basis points (bps) in the January to March quarter, driven by early stocking of key manufacturing raw materials despite the inflationary situation in the raw material market.

“Gross margins improved by 62 bps at 55.2% in Q1 CY2026, supported by early stocking of key raw materials despite the inflationary raw material environment,” the company said in its exchange filing.

The company also disclosed that the earnings before interest tax depreciation and amortisation (EBITDA) rose 21% to ₹1,528.90 crore in Q1 2026, compared to ₹1,264 crore in the same period a year earlier.

The company’s EBITDA margins improved by 55 bps to 23.3% in the first quarter of the calendar year 2026.

Dividend issue

Varun Beverages’ board of directors, in its quarterly meeting held on April 27, also considered and recommended an interim dividend of ₹0.50 per equity share with a face value of ₹2 per share, subject to the necessary approvals.

“The payment of interim dividend of ₹0.50 per equity share for the financial year 2026 on the total issued, subscribed and paid-up 338,20,94,394 equity shares of the nominal value of ₹2 each,” the company informed the stock exchange.

This means every eligible shareholder will receive an interim dividend payment of ₹0.50 per share for every share they own in Varun Beverages, up to 24 hours ahead of the pre-determined record date of the corporate action.

The company fixed the record date of the dividend issue on Friday, May 1, 2026. The interim dividend will be paid on Tuesday, May 5, to the eligible shareholders.

Varun Beverages share price

Varun Beverages shares were trading 3.36% higher at ₹506.95 on Monday, compared to ₹490.45 at the previous stock market close, according to the NSE data. The company announced its Q1 CY2026 results during the market operating hours on April 27.

Shares of Varun Beverages have given stock market investors more than 509% returns on their investment in the last five years, and more than 72% returns in the last three years. However, the company’s stock lost 3.2% in the last one year period.

On a year-to-date basis, the company's stock was down 2.6% in 2026. Varun Beverages shares have gained more than 29% in the past one-month period, and were trading over 8% higher on the Indian stock market.

The company’s market capitalisation (M-Cap) was at over ₹1.7 lakh crore as of Monday’s trading session.