New Delhi

Varun Beverages Ltd, the largest franchise bottler of PepsiCo, on Monday reported a 20.14 per cent rise in consolidated net profit to Rs 878.71 crore for the March quarter of 2026, driven by strong double-digit volume growth in India and overseas markets.

The company had posted a net profit of Rs 731.35 crore in the January-March quarter of 2025. Revenue from operations rose 18.33 per cent year-on-year to Rs 6,721.53 crore.

Sales volume during the quarter increased 16.3 per cent to 363.4 million cases from 312.4 million cases a year earlier. Growth was led by a 14.4 per cent rise in India and a 21.4 per cent increase in international territories.

Net realisation per case improved 1.6 per cent at the consolidated level, helped by better pricing in overseas markets and favourable currency movements. However, in India, net realisation per case fell 1.5 per cent due to volume-growth initiatives such as larger pack sizes and selective low-price launches aimed at attracting new consumers.

Gross margins improved by 62 basis points to 55.2 per cent in the quarter, supported by early stocking of key raw materials despite inflationary pressure. Total expenses rose 18.35 per cent to Rs 5,597.92 crore, while total consolidated income stood at Rs 6,765.06 crore, up 18.5 per cent.

Chairman Ravi Jaipuria said the company delivered a strong first quarter performance backed by healthy demand, disciplined execution and continued progress across markets.

He said demand in India remained encouraging due to wider distribution reach, improved execution and investments in manufacturing capacity and chilling infrastructure.

On the international front, Jaipuria said the company completed the acquisition of Twizza in South Africa through BevCo, strengthening its manufacturing and distribution presence in Africa’s largest soft drinks market. He added that the deal is expected to create operational and commercial synergies over time.

Varun Beverages has also signed an agreement to acquire Crickley Dairy through BevCo, subject to regulatory approvals.

The company announced an interim dividend of 25 per cent, equivalent to 50 paise per equity share of face value Rs 2.

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Shares of Varun Beverages Ltd were trading at Rs 503.10 on the BSE, up 2.52 per cent from the previous close.