Varun Beverages Limited has released its financial results for the second quarter of calendar year 2026, reporting significant growth in earnings and revenue for the April to June period. Despite the strong operational performance, the company's shares faced heavy selling pressure in the market.
Revenue and Profit Growth
According to the regulatory filing, the company's revenue from operations surged by 21% year-on-year to reach Rs. 8,650.57 crore during the June quarter. Concurrently, the consolidated net profit for Q2CY26 climbed 15.4% to stand at Rs. 1,520.79 crore, compared to Rs. 1,317.02 crore recorded in the corresponding quarter of the previous year.
EBITDA and Margins
The company reported a 17% increase in EBITDA, which rose to Rs. 2,344 crore for the quarter from Rs. 1,999 crore a year ago. However, the EBITDA margin contracted by 76 basis points to 27.7% in the June quarter of 2026, down from 28.46% in the same period last year.
Share Price Reaction
Post the announcement of the quarterly performance, shares of Varun Beverages Limited witnessed a sharp correction. Around 3:15 PM, the stock was trading down by 7.53% at Rs. 429.50.
Dividend Details
Alongside the financial results, the board of directors of Varun Beverages approved a second interim dividend of Rs. 0.50 per equity share, having a face value of Rs. 2 per share. Investors who hold or purchase the stock prior to the record date will be eligible for the payout. The company has fixed Saturday, August 1st as the record date for the dividend, with the payment scheduled for August 4th.
In additional corporate updates, the company stated that it entered into a revised Exclusive bottling appointment and trademark license agreement with PepsiCo for India on May 21st, 2026.
Volume Performance in Domestic and International Markets
During the quarter under review, the company's India business registered a volume growth of 14.4%. In the international segment, the company noted that international volumes accounted for 11.8 million cases during the quarter, following the acquisition of Twizza in South Africa.
