Varun Beverages Ltd, leading bottler for PepsiCo, posted a consolidated net profit of ₹830.6 crore in the September quarter, up 13.54 per cent on-year over ₹731.5 crore in the year-ago period. The company, which follows the calendar year as its financial year, said net revenues grew 33.2 per cent to ₹6,607.5 crore, driven by strong volume growth.
Consolidated sales volume grew 28.7 per cent in Q3 CY2026, on robust volume growth of 22.5 per cent in India. The company added that the share of no-sugar and low-sugar beverage products increased to 86 per cent of its consolidated volumes. The company’s board also approved an interim dividend of 25 per cent per share, and the total cash outflow would be about ₹169.1 crore.
“In India, we continued to witness healthy volume growth during the quarter, extending the positive trend seen since May. This performance was supported by our extensive distribution network, expanded manufacturing capacities, and ongoing investments in chilling infrastructure,” said Varun Jaipuria, Executive Vice-Chairman, Varun Beverages Ltd. “We also saw improved realisations, supported by growth in higher-value categories such as dairy beverages and the introduction of premium offerings, including ‘Ad Rush’ and the ‘Evervess’ mixers range.”
Higher packaging costs, he said, weighed on margins during the quarter, although improved realisations and operating leverage from strong volume growth helped offset these pressures partially.
“Margins were also impacted by higher sales of non-beverage products like preforms, caps, etc. in India, which increased by 104 per cent during the quarter and have a higher COGS (cost of goods sold), impacting gross margins by about 100 bps in India,” the company said in a statement. The increase in sugar prices, it said, was largely offset by an increase in the mix of low-sugar and non-sugar products.
“During the quarter, we also started beverage operations in Kenya and introduced two new beverage brands, BOLT UP and XTREME FIZZ, marking another step towards strengthening our footprint in the fast-growing Africa region,” said Jaipuria. “We also entered into an exclusive distribution agreement with Mondelez in Zimbabwe, further broadening our product offerings in the market. We are also taking measured steps towards diversifying our business into adjacent categories. The incorporation of KIVA Spirits and Company Ltd marks an important step in exploring opportunities in ready to-drink beverages, alcoholic beverages, and allied products.”
Published on October 30, 2026
