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Investor Presentation

Varun Beverages Investor Presentation: Key Takeaways

VBL reported strong Q2 CY2026 performance with 20.4% net revenue growth and 17.2% EBITDA growth. Key developments include extending the PepsiCo India agreement to 2049 and acquiring DFIKL in Kenya.

Highlights
Revenue growth20.4% YoY for Q2 CY2026.
MarginsGross margins improved 44 bps to 55.0%; EBITDA margins slightly compressed.
Demand visibilityStrong, except for a flat April in India due to seasonality.
Management confidenceHigh, citing demographic tailwinds and expanded manufacturing footprint.

Growth

Q2 revenue reached Rs. 84,512.3 mn (+20.4% YoY); PAT grew 15.1% to Rs. 15,253.6 mn.

Outlook

Interim dividend of Rs. 0.50 approved; Rs. 9,500 mn capitalized capex in H1; entering fermented dairy with CALPIS.

Risks

EBITDA margins declined 76 bps to 27.7% due to Twizza consolidation; high inflationary raw material environment remains.

Last quarter's promises, checked

Delivered

  • Guided double-digit growth → delivered 19.8% volume growth (= BEAT)
  • Guided Rs. 500-600 cr India Capex → delivered Rs. 950 cr H1 Capex (= BEAT)
  • Guided Sting Classic launch response → delivered strong contribution to 19.8% volume (= BEAT)

Partly delivered

  • Guided Twizza margin correction → delivered consolidation but margin compression (= PARTIAL)

Missed

  • Guided margin sustainability → delivered 76 bps EBITDA margin decline (= MISS)
Source

Investor Presentation filed with NSE, NSE: VBL. Summary written with AI assistance from the document.

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Varun Beverages Ltd: key numbers

Share price
₹434.80
Market cap
₹1,47,071 Cr
Revenue (annual)
₹21,685 Cr
Net profit (annual)
₹3,036 Cr
P/E (TTM)
43.4×Sector 29.0×
Promoter holding
59.43%-0.01% QoQ
FII holding
19.03%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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