Varun Beverages Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Varun Beverages Ltd filed with BSE on 04 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Varun Beverages reported consolidated sales volume growth of 19.8% and net revenue growth of 20.4% in Q2 CY2026, with EBITDA rising 17.2% to Rs. 23,430.4 million. India volumes grew 14.4% for the quarter, impacted by a weak April, while international markets including South Africa's Twizza acquisition delivered 38.4% volume growth. Management discussed extending the PepsiCo bottling agreement to 2049, a new alliance with Asahi Group Holdings for the Calpis brand, and an agreement to acquire Devyani Food Industries (Kenya) Limited.
Numbers mentioned
Consolidated sales volume growth: 19.8% (Q2 CY2026)
p. 2
“Consolidated sales volume grew by 19.8% and, together with improved realizations translated into a 20.4% increase in net revenue from operations.”
Ravi Jaipuria, page 2 of the filed PDF · View the filing
EBITDA: Rs. 23,430.4 million (Q2 CY2026)
p. 2
“EBITDA increased by 17.2% to Rs. 23,430.4 million in Q2 2026.”
Ravi Jaipuria, page 2 of the filed PDF · View the filing
India volume growth: 14.4% (Q2 CY2026)
p. 3
“resulting in overall volume growth for the quarter of 14.4%.”
Ravi Jaipuria, page 3 of the filed PDF · View the filing
Revenue from operations: Rs. 84,512.3 million (Q2 CY2026)
p. 4
“Revenue from operations net of excise and GST stood at Rs. 84,512.3 million in Q2 of 2026, up 20.4% year-on-year.”
Raj Gandhi, page 4 of the filed PDF · View the filing
H1 Revenue: Rs. 150,254.2 million (H1 CY2026)
p. 4
“For H1 2026, revenue increased by 19.4% to Rs. 150,254.2 million.”
Raj Gandhi, page 4 of the filed PDF · View the filing
Consolidated sales volume: 466.7 million cases (Q2 CY2026)
p. 4
“Growth during the quarter was primarily supported by 19.8% increase in consolidated sales volume to the level of 466.7 million cases.”
Raj Gandhi, page 4 of the filed PDF · View the filing
International volume growth: 38.4% (Q2 CY2026)
p. 4
“International markets also delivered a healthy growth with volumes increasing by 38.4% including the contribution of 11.8 million cases from Twizza in South Africa.”
Raj Gandhi, page 4 of the filed PDF · View the filing
Net realization per case: 1.2% improvement (Q2 CY2026)
p. 4
“Net realization per case for beverages at the consolidated level improved by 1.2% supported by better realizations in international territories.”
Raj Gandhi, page 4 of the filed PDF · View the filing
Gross margin: 55% (Q2 CY2026)
p. 4
“Gross margin improved by 44 basis points year-on-year to 55% supported by a higher mix of international business.”
Raj Gandhi, page 4 of the filed PDF · View the filing
EBITDA margin: 27.7% (Q2 CY2026)
p. 4
“EBITDA stood at Rs. 23,430.4 million, registering growth of 17.2% year-on-year with the EBITDA margin at 27.7% in Q2 of 2026.”
Raj Gandhi, page 4 of the filed PDF · View the filing
PAT growth: 15.1% to Rs. 15,253.6 million (Q2 CY2026)
p. 4
“PAT grew by 15.1% to the level of Rs. 15,253.6 million, supported by strong volume growth across India and international territories.”
Raj Gandhi, page 4 of the filed PDF · View the filing
Depreciation growth: 33.6% (Q2 CY2026)
p. 4
“Depreciation increased by 33.6% due to the commissioning of new plants in India last year, which were not part of the base quarter, and the acquisition of Twizza in South Africa.”
Raj Gandhi, page 4 of the filed PDF · View the filing
Finance costs growth: 55.8% (Q2 CY2026)
p. 4
“Finance costs increased by 55.8% primarily on account of Twizza acquisition.”
Raj Gandhi, page 4 of the filed PDF · View the filing
H1 EBITDA: Rs. 38,719.6 million (H1 CY2026)
p. 4
“For H1 2026, EBITDA increased by 18.7% to the level of Rs. 38,719.6 million, while PAT grew by 16.9% to the level of Rs. 24,040.7 million.”
Raj Gandhi, page 4 of the filed PDF · View the filing
Low-sugar/no-sugar volume contribution: ~73% (H1 CY2026)
p. 4
“Low-sugar, no-sugar products contributed approximately 73% of the consolidated volume during the period.”
Raj Gandhi, page 4 of the filed PDF · View the filing
India surplus cash: ~Rs. 14,941 million (as of June 30, 2026)
p. 4
“VBL India remains net debt-free with surplus cash of ~Rs. 14,941 million.”
Raj Gandhi, page 4 of the filed PDF · View the filing
Consolidated net debt: ~Rs. 3,730 million (as of June 30, 2026)
p. 4
“At the consolidated level, net debt stood at ~Rs. 3,730 million as of 30th June 2026.”
Raj Gandhi, page 4 of the filed PDF · View the filing
Net capitalized capex: ~Rs. 9,500 million (H1 CY2026)
p. 5
“During H1 2026, net capitalized capex amounted to ~Rs. 9,500 million.”
Raj Gandhi, page 5 of the filed PDF · View the filing
Capital work-in-progress: ~Rs. 4,900 million (as of June 30, 2026)
p. 5
“As on 30th June 2026, capital work-in-progress stood at the level of ~Rs. 4,900 million, primarily relating to expansion in South Africa and a CSD line in Kenya.”
Raj Gandhi, page 5 of the filed PDF · View the filing
Twizza acquisition inorganic capex: Rs. 11,314 million (H1 CY2026)
p. 5
“In addition, inorganic capex of Rs. 11,314 million was incurred towards the acquisition of Twizza Limited in South Africa.”
Raj Gandhi, page 5 of the filed PDF · View the filing
Interim dividend: Rs. 0.50 per share (CY2026)
p. 3
“In accordance with our dividend policy, the Board of Directors has approved an interim dividend of 25% of face value, i.e., Rs. 0.50 per share, resulting in total cash outflow of ~Rs. 1,691 million.”
Ravi Jaipuria, page 3 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
India volume growth — 20% plus · post-June/going forward
stated firmly by Varun Jaipuria
p. 5
“Even post-June, we are looking at a 20% plus growth at least minimum.”
Varun Jaipuria, page 5 of the filed PDF · View the filing
VAD (value-added dairy) growth — over 40%
stated firmly by Ravi Jaipuria
p. 8
“We can also give you some numbers for your comfort that VAD is growing at over 40% for us and Nimbooz is growing at more than 30% for us.”
Ravi Jaipuria, page 8 of the filed PDF · View the filing
EBITDA margin
stated firmly by Ravi Jaipuria
p. 11
“We can comfortably maintain our margins even in a year, which is the worst year for the geopolitical reasons and all the costing has gone up internationally.”
Ravi Jaipuria, page 11 of the filed PDF · View the filing
Energy drink labeling compliance — remove word 'energy' from labels · within next 90 days
stated firmly by Ravi Jaipuria
p. 11
“They have come out with a clear guideline that we should have the word energy removed within next 90 days.”
Ravi Jaipuria, page 11 of the filed PDF · View the filing
Food distribution and manufacturing in Africa — about 50%
stated firmly by Ravi Jaipuria
p. 10
“That is also growing well for us. That is growing at about 50%.”
Ravi Jaipuria, page 10 of the filed PDF · View the filing
New category expansion beyond Calpis
stated as an aspiration by Varun Jaipuria
p. 14
“So it is pretty much Calpis for now, going forward, basically figuring out what categories we want to do.”
Varun Jaipuria, page 14 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said Rs. 10 is not a significant or profitable focus and growth is being driven at higher price points; April rain impacted volumes broadly.
Answered by Varun Jaipuria
Asked by Abneesh Roy: Is there further scale-up planned at the Rs. 10 price point and how does rain impact compare to competitors like Campa?
p. 5
“We have not scaled up Rs. 10 significantly as it is a non-profitable category for us and as long as we are delivering 20% plus growth in most of our markets, we are pretty happy with that growth.”
Varun Jaipuria, page 5 of the filed PDF · View the filing
Management said it is too early, they are exploring new categories but not bidding for Bira.
Answered by Ravi Jaipuria
Asked by Abneesh Roy: Is the company entering the alcobev business given the Economic Times report on hiring from Diageo?
p. 7
“We are hiring some people to look at new ventures, new possibilities, but it is too early. We have just got the clearance from PepsiCo, and we are not looking at Bira.”
Ravi Jaipuria, page 7 of the filed PDF · View the filing
Management said these categories are growing 3x-4x faster than the overall business.
Answered by Varun Jaipuria
Asked by Aditya Soman: How are new categories like Nimbooz and dairy performing versus carbonated beverages?
p. 7
“we cannot give you the specifics here, but at least we are seeing 3x-4x growth compared to our overall business and we are heavily focusing on driving these categories.”
Varun Jaipuria, page 7 of the filed PDF · View the filing
Management said they have secured enough material for Q3 and part of higher cost has already been absorbed in Q2 through average costing.
Answered by Ravi Jaipuria
Asked by Aditya Soman: How is the raw material supply situation evolving given prior comments on Q2 stock sufficiency?
p. 8
“We have now made sure that we have enough material for Q3, but obviously there is an impact of cost and which has got mixed in as we average our cost price and we have taken part of it in the Q2.”
Ravi Jaipuria, page 8 of the filed PDF · View the filing
Management said all countries except Zambia are growing at a reasonably fast pace, with Zimbabwe recovering after prior issues.
Answered by Ravi Jaipuria
Asked by Anand Shah: How did international geographies perform this quarter excluding Twizza?
p. 9
“Internationally, all our countries except Zambia, which is slightly slower and a very small market for us, are growing at a reasonably fast pace and there is huge opportunity in Africa.”
Ravi Jaipuria, page 9 of the filed PDF · View the filing
Management said they see no reason for growth to fall short of double digits, citing 20%+ growth trends outside of weather-impacted months.
Answered by Ravi Jaipuria
Asked by Percy Panthaki: Can the company sustain low double-digit India growth given intensified competition from Campa and Coca-Cola?
p. 10
“I do not see any reason why we should not be growing in double digits.”
Ravi Jaipuria, page 10 of the filed PDF · View the filing
Management said margins have been maintained even in a difficult geopolitical cost environment and are not expected to worsen.
Answered by Ravi Jaipuria
Asked by Percy Panthaki: Up to what crude price level can EBITDA margins be maintained?
p. 11
“We have still been able to maintain our margins. When these wars stops and all these issues come down, our margins cannot get worse.”
Ravi Jaipuria, page 11 of the filed PDF · View the filing
Management said there was temporary confusion from lack of regulatory clarity, affecting June and July, but volumes are recovering as new labels roll out.
Answered by Ravi Jaipuria
Asked by Jay Doshi: What is happening at the industry level with energy drinks regulation and STING demand?
p. 11
“There is a temporary effect because there was a confusion created without giving a clear direction, and now we have got the clear direction.”
Ravi Jaipuria, page 11 of the filed PDF · View the filing
Management said the strategy of upsizing to 400ml is working and driving growth, narrowing the price gap with Campa's Rs. 10 offering.
Answered by Varun Jaipuria
Asked by Jay Doshi: Has market share changed at the Rs. 20 price point after upsizing packs?
p. 12
“And the 400 ml pack what we have launched, we are obviously seeing larger recruitment of consumers coming in and that strategy for us in majority of our markets is working for us driving growth.”
Varun Jaipuria, page 12 of the filed PDF · View the filing
Management said a minor cans supply issue affected a small portion of the business but was not a major factor.
Answered by Ravi Jaipuria
Asked by Naman Maheshwari: What caused the April impact - was it El Nino or supply chain/raw material issues?
p. 13
“Minor issue was with cans, which is a very small portion of our business. Cans were only affected for the quarter, there was nothing else.”
Ravi Jaipuria, page 13 of the filed PDF · View the filing
Management said the current focus is solely on stabilizing and structuring Calpis in the market before considering other categories.
Answered by Varun Jaipuria
Asked by Nitin Shakdher: Is there a plan to expand the Asahi Group Holdings partnership beyond Calpis to other product lines?
p. 14
“Our idea is to build a solid portfolio, but our starting point is Calpis right now. We want to stabilize Calpis, we want to structure Calpis right in the market.”
Varun Jaipuria, page 14 of the filed PDF · View the filing
Risks flagged
Geopolitical issues affecting raw material pricing due to West Asia crisis
p. 4
“In India, early stocking of key raw materials and savings in sugar consumption driven by a higher mix of low-sugar, no-sugar products helped maintain gross margins despite the inflationary raw material environment affected by West Asia crisis.”
Raj Gandhi, page 4 of the filed PDF · View the filing
EBITDA margin decline due to Twizza consolidation operating at lower margins
p. 4
“EBITDA margin declined by 76 basis points year-on-year primarily due to consolidation of Twizza business which currently operates at lower margins.”
Raj Gandhi, page 4 of the filed PDF · View the filing
Weather impact from El Nino reducing April volume growth
p. 3
“resulting in overall volume growth for the quarter of 14.4%.”
Ravi Jaipuria, page 3 of the filed PDF · View the filing
Zambia market growing slower than other international markets
p. 9
“Internationally, all our countries except Zambia, which is slightly slower and a very small market for us, are growing at a reasonably fast pace and there is huge opportunity in Africa.”
Ravi Jaipuria, page 9 of the filed PDF · View the filing
Regulatory confusion around energy drink category affecting demand temporarily
p. 11
“There is a temporary effect because there was a confusion created without giving a clear direction, and now we have got the clear direction.”
Ravi Jaipuria, page 11 of the filed PDF · View the filing
Cans supply issue affecting a small portion of business in the quarter
p. 13
“Minor issue was with cans, which is a very small portion of our business. Cans were only affected for the quarter, there was nothing else.”
Ravi Jaipuria, page 13 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.