Event Type: Earnings Conference Call held post declaration of Unaudited Financial Results for the Quarter and Nine Months ended September 30, 2026.
Date and Time: October 30, 2026. Specific time not mentioned in the transcript.
Purpose: Discussion of Q3 and 9M CY2026 financial results and operational performance, including strategic updates and future outlook.
Timing Relative to Earnings: The call was held after the earnings announcement, as indicated by the reference to "post declaration of Unaudited Financial Results."
Management Participants:
Mr. Varun Jaipuria, Executive Vice Chairman and Whole-Time Director
Mr. Raj Gandhi, President and Whole-Time Director
Mr. Ravi Jaipuria, Chairman (excused due to personal reasons)
Moderated by Mr. Anoop Poojari from CDR India
Availability of Materials: The transcript of the conference call was submitted to the exchanges and is available on the company's website at www.varunbeverages.com.
UPSI Compliance: The document includes standard forward-looking statement disclaimer but does not explicitly state that no unpublished price sensitive information will be shared.
Financial Highlights Discussed
Financial Period: Q3 and Nine Months ended September 30, 2026 (CY2026)
Key Financial Metrics:
Consolidated sales volume growth: 28.7% (354.4 million cases)
India volume growth: 22.5%
International volume growth: 39.9%
Revenue from operations: ₹66,075.6 million (33.2% YoY growth)
EBITDA: ₹14,267.1 million (25.1% YoY growth)
EBITDA margin: 21.6% (contracted by 140 bps)
PAT: ₹8,306 million (13.5% YoY growth)
Gross margin: 53.1% (contracted by 334 bps)
Volume Mix:
Carbonated soft drinks: 73.3%
Juice-based drinks: 4.8%
Packaged drinking water: 21.9%
Dividend Declaration: Interim dividend of 25% of face value (₹0.50 per share) approved, resulting in total cash outflow of ₹1,691 million.
Operational and Strategic Updates
India Operations: Healthy volume growth supported by extensive distribution network, expanded manufacturing capacities, and investments in chilling infrastructure. Improved realizations from growth in higher-value categories including dairy, 'Ad Rush', and 'Evervess' mixers range.
International Expansion:
Africa remains key focus with strong growth
Merger of Twizza with BevCo completed effective August 1, 2026
Started beverage operations in Kenya with new brands 'BOLT UP' and 'XTREME FIZZ'
Exclusive distribution agreement with Mondelez in Zimbabwe
New Business Diversification:
Incorporation of KIVA Spirits and Company Limited to explore opportunities in ready-to-drink beverages, alcoholic beverages and allied products
Focus on premium, high-margin portfolios in alcohol business
Cost Pressures:
Packaging material costs increased due to geopolitical disruptions, contributing approximately 300 bps pressure on gross margin
Sugar prices increased by 16% but largely offset by portfolio shift to low/no sugar products (increased from 44% to 88% share)
Sale of non-beverage products (preforms, caps) impacted India gross margin by ~100 bps
Capacity Expansion:
International: Adding lines in South Africa, Zimbabwe, Morocco, DRC (~$90-100 million capex)
India: Greenfield plant at Suratgarh, Rajasthan for Visi-coolers and PET line (~₹1,000 crore capex)
Technology Initiatives:
AI adoption for route optimization, distributor management, and outlet mapping
B2B app (Bandhan) with 0.5 million monthly retailer orders
Cooler monitoring system with 0.5 million monthly images
Additional Notes
Attachments: The regulatory filing includes the transcript of the Investors & Analysts Conference Call held on October 30, 2026.
Financial Data Disclosure: The announcement contains extensive financial data from the Q3 and 9M CY2026 results, including detailed revenue, volume, margin, and profit figures.
Logistical Details: The transcript includes full Q&A session with analysts but does not contain dial-in numbers or access codes.
