Financial Performance Highlights

Q2 CY2026 Performance (vs Q2 CY2025):

  • Revenue from operations grew 20.4% YoY to ₹84,512.3 million from ₹70,173.7 million
  • EBITDA increased 17.2% YoY to ₹23,430.4 million from ₹19,987.7 million
  • PAT increased 15.1% YoY to ₹15,253.6 million from ₹13,254.9 million
  • EBITDA margins declined by 76 bps to 27.7%
  • Gross margins improved by 44 bps to 55.0%

H1 CY2026 Performance (vs H1 CY2025):

  • Revenue from operations grew 19.4% YoY to ₹150,254.2 million from ₹125,843.1 million
  • EBITDA increased 18.7% YoY to ₹38,719.6 million from ₹32,627.4 million
  • PAT increased 16.9% YoY to ₹24,040.7 million from ₹20,568.5 million

Volume Metrics and Operational Performance

Q2 CY2026 Volume Analysis:

  • Consolidated sales volume grew 19.8% to 466.7 million cases from 389.7 million cases
  • India volume growth: 14.4%
  • International territories volume growth: 38.4%
  • International volumes include 11.8 million cases from the acquisition of Twizza in South Africa
  • Realization per case improved by 1.2% at consolidated level
  • Low sugar/No sugar products increased to ~73% of consolidated sales volumes in H1 CY2026

Cost Structure and Margins:

  • Gross margins improved to 55.0% supported by higher mix of International business
  • In India, early stocking of key raw materials and savings in sugar consumption with higher mix of low sugar/no sugar products helped maintain gross margins
  • Depreciation increased by 33.6% due to commissioning of new plants in India and acquisition of Twizza
  • Finance cost increased by 55.8% due to the acquisition of Twizza
  • In India, EBITDA margins improved by 38 bps driven by operational efficiencies

Strategic Developments and Business Updates

Revised PepsiCo Agreement (May 21, 2026):

  • Extended Exclusive Bottling Appointment (EBA) term to April 30, 2049 (from April 30, 2039)
  • Removed restriction requiring VBL to operate solely as an SPV for PepsiCo's business
  • Provides greater operational flexibility to explore, expand and avail benefits of scale and synergies

CALPIS Franchise Agreement (June 18, 2026):

  • Business alliance with Asahi Group Holdings to introduce CALPIS brand in India
  • CALPIS is Japan's iconic fermented milk-based beverage brand with over 100 years legacy
  • Plans to launch with Original and Mango variants

Kenya Acquisition (July 6, 2026):

  • VBL Industries (Kenya) Limited entered Business Transfer Agreement to acquire business of Devyani Food Industries (Kenya) Limited
  • Purchase consideration: USD 32 million (~₹3,050 million at 1 USD = 95.30 INR)
  • DFIKL had net revenue of over ₹3,000 million for value-added dairy, juices, packaged drinking water for FY ended March 2026
  • DFIKL has existing GTM infrastructure in place

Dividend Declaration

  • Board approved interim dividend of 25% of face value, i.e., ₹0.50 per share
  • Total cash outflow: approximately ₹1,691 million
  • In line with company's dividend policy guidelines

Management Commentary

Mr. Ravi Jaipuria, Chairman, commented on the strong performance across markets. Key points:

  • Healthy volume growth in twenties since March onset except flat April
  • Expanded manufacturing footprint, extensive distribution network and continued investments in chilling infrastructure drove growth
  • Confident in long-term growth potential across markets supported by favourable demographics, rising disposable incomes and increasing consumption of packaged beverages
  • Adequate capacities, growing and diversified portfolio, strong partnerships and extensive distribution network position company for sustained profitable growth

Company Background

  • One of the largest franchisees of PepsiCo in the world (outside USA)
  • Produces and distributes carbonated soft drinks and non-carbonated beverages under PepsiCo trademarks
  • India contributed ~67% of revenues from operations (net) in Fiscal 2025
  • Operations across 26 States and 6 Union Territories in India, plus international territories including Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe, South Africa, Lesotho, Eswatini & DRC

Note: VBL follows calendar year reporting (Jan to Dec). Given seasonality in business, significant portion of revenues and profits are realized in Apr-June quarter.