Varun Beverages Limited – Investor Presentation Summary

Key Operational Highlights

  • Consolidated sales volumes grew by 19.8% to 466.7 million unit cases in Q2 CY2026 from 389.7 million cases in Q2 CY2025
  • India sales volumes grew by 14.4% to 346.5 million cases from 302.9 million cases
  • International volumes grew by 38.4%, including 11.8 million cases from the acquisition of Twizza in South Africa
  • Mix of Low sugar/No sugar products increased to ~73% of consolidated sales volumes in H1 CY2026
  • Key drivers: Expanded manufacturing footprint, extensive distribution network, continued investments in chilling infrastructure, and acquisition of Twizza

Segment-wise Performance

  • Carbonated Soft Drinks (CSD): 351 million cases (75% of total) in Q2 CY2026 vs 291 million cases (75%) in Q2 CY2025
  • Non-Carbonated Beverages (NCB): 30 million cases (7% of total) in Q2 CY2026 vs 28 million cases (7%) in Q2 CY2025
  • Packaged Drinking Water: 85 million cases (18% of total) in Q2 CY2026 vs 71 million cases (18%) in Q2 CY2025
  • Explanation: Growth driven by healthy volume growth in India since March 2026 (except flat April) and strong momentum in international business

Financial Highlights

Revenue: Rs. 86,505.70 million (Q2 CY2026)

Net Revenue from Operations: Rs. 84,512.32 million (Q2 CY2026)

EBITDA: Rs. 23,430.37 million (Q2 CY2026)

PAT: Rs. 15,253.55 million (Q2 CY2026)

EPS: Not Specified

Margins: EBITDA margin 27.7% (Q2 CY2026), Gross margin 55.0% (improved 44 bps)

YoY comparison: Net Revenue grew 20.4%, EBITDA grew 17.2%, PAT grew 15.1%

Drivers of financial performance: Volume growth of 19.8%, improved realizations (1.2% per case beverages), operational efficiencies

Comparison to market estimates: Not Specified

Key Risks: High inflationary raw material environment, transportation and distribution costs

Geographical Revenue Split

Domestic vs Export/Regional Revenue:

  • India Revenue: Rs. 59,962.1 million (Q2 CY2026)
  • International Revenue: Not Specified
  • Domestic contribution: ~67% of revenues from operations (net) in Fiscal 2025

Regional Breakdown: Operations span 10 countries with distribution rights in additional 4 countries including Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe, South Africa, Lesotho, Eswatini, DRC, Namibia, Botswana, Mozambique, Madagascar

Balance Sheet Snapshot

Net Debt/Equity: Consolidated net debt ~Rs. 3,730 million as on June 30, 2026

Reserves: Other equity Rs. 210,941.95 million

Current Assets: Rs. 105,274.16 million

Current Liabilities: Rs. 51,799.93 million

Working Capital/Leverage Metrics: Trade Payables Rs. 20,190.61 million, Inventories Rs. 39,896.85 million, Trade Receivables Rs. 16,477.47 million

Financial Health Insights: VBL India remained net debt free with free cash of ~Rs. 14,941 million, long-term rating reaffirmed as CRISIL AAA/Stable

Capex & Cash Flow Health

Capital Expenditure: Net capitalized capex ~Rs. 9,500 million during H1 CY2026

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Increased due to acquisition of Twizza in South Africa

Investment Rationale: Brownfield expansions in India including VAD beverage line in Supa (~Rs. 2,000 million), Zimbabwe Snacks manufacturing plant (~Rs. 1,000 million), market infrastructure (visi-coolers, glass bottles, pallets, vehicles - ~Rs. 4,000 million)

Strategic & R&D Initiatives

Investments in Innovation: Expanded manufacturing footprint, chilling infrastructure, product portfolio diversification

Expected impact on growth: Acquisition of Twizza provided additional capacity and route-to-market capabilities in South Africa; CALPIS brand entry into value-added fermented dairy beverage category

Strategic Rationale: Extended PepsiCo bottling agreement until April 2049 provides operational flexibility; Alliance with Asahi Group expands portfolio; Acquisition in Kenya provides ready GTM infrastructure

Industry Trends & Business Environment

Macro/Industry Trends: Favourable demographics, rising disposable incomes, increasing consumption of packaged beverages

Impact on Company: Supporting long-term growth potential across markets

Management Commentary & Growth Outlook

Strategic Outlook: "We remain confident in the long-term growth potential across our markets, supported by favourable demographics, rising disposable incomes and increasing consumption of packaged beverages" - Mr. Ravi Jaipuria, Chairman

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Not Specified

Additional Headings

Sustainability Updates
  • Company maintains water positive status with CDP water rating: A-
Corporate Actions
  • Board approved interim dividend of 25% of face value (Rs. 0.50 per share) with total cash outflow of ~Rs. 1,691 million