Brands
Varun Beverages Q3 profit rises 13.5 per cent to Rs 830.6 crore as revenue jumps 33 per cent
Board declares third interim dividend of 50 paise per share as bottler expands its beverage and distribution businesses
MUMBAI: Varun Beverages Limited (VBL), PepsiCo’s bottling partner, reported a 33.3 per cent rise in consolidated revenue from operations to Rs 6,815.59 crore for the third quarter ended 30 September 2026, while net profit increased 13.5 per cent to Rs 830.59 crore.
Revenue from operations stood at Rs 5,112.44 crore in the corresponding quarter last year. Including other income of Rs 119.86 crore, consolidated total income rose to Rs 6,935.45 crore from Rs 5,260 crore a year earlier.
For the nine months ended 30 September 2026, total income climbed to Rs 22,640.31 crore from Rs 18,354.15 crore in the corresponding period of 2025. Net profit for the nine-month period stood at Rs 3,202.30 crore. Earnings per share for the quarter increased to Rs 2.45 from Rs 2.15, while nine-month EPS was Rs 9.43.
The growth came alongside a rise in operating costs. Consolidated expenses increased to Rs 5,880.55 crore in the quarter from Rs 4,331.10 crore a year earlier. Material costs accounted for Rs 2,909.62 crore, employee expenses Rs 602.56 crore and finance costs Rs 71.69 crore. Depreciation stood at Rs 419.98 crore, excise duty at Rs 208.03 crore and other expenses at Rs 1,478.92 crore.
On a standalone basis, revenue from operations rose to Rs 3,822.45 crore from Rs 3,063.98 crore in Q3 2025. Net profit stood at Rs 658.53 crore, while revenue for the nine-month period reached Rs 14,319.21 crore.
Shareholders get third interim dividend
The board declared a third interim dividend of 50 paise per equity share for calendar year 2026, amounting to a payout on 3,382,494,644 paid-up shares with a face value of Rs 2 each.
The record date has been fixed as 5 November 2026, with dividend payments scheduled to begin from 7 November. VBL follows a January-to-December financial year.
Expansion across beverages and distribution
The results come amid a series of acquisitions, investments and distribution agreements across India and Africa.
In India, VBL incorporated KIVA Spirits and Company Limited as a wholly owned subsidiary on 29 August 2026. The new entity will focus on ready-to-drink alcoholic beverages and related products, marking the group’s entry into the segment.
In Zimbabwe, subsidiary Varun Beverages (Zimbabwe) signed an exclusive distribution agreement with Mondelez South Africa on 24 September. Effective 1 October 2026, the arrangement covers the distribution of Mondelez products, including chocolates, biscuits, candy and gum, across the country. VBL also incorporated Varun Beverages Holding (Zimbabwe) in August.
In South Africa, subsidiary Bevco acquired 100 per cent of beverage maker Twizza Proprietary Limited on 18 March 2026 at an enterprise value of ZAR 2,053 million, equivalent to about Rs 1,139.8 crore. Twizza was merged into Bevco with effect from 1 August.
In Kenya, VBL Industries (Kenya) acquired the business of Devyani Food Industries (Kenya) for $32 million, or approximately Rs 305 crore, on 1 August. The common-control transaction required the restatement of comparative financial information.
However, a proposed acquisition in the dairy segment has run into a legal dispute. Bevco’s planned purchase of 100 per cent of Crickley Dairy for ZAR 238 million, or around Rs 131.47 crore, did not proceed after certain conditions precedent remained unfulfilled. The seller has referred the matter to the Arbitration Foundation of Southern Africa.
The developments underline VBL’s push to widen its beverage portfolio and strengthen its distribution footprint beyond its core soft-drink business.
