Varun Beverages Limited Earnings Summary — Q1 FY2027
Varun Beverages Posts 21% Revenue Growth Driven by International Acquisitions and Portfolio Expansion
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹8,451 Cr is 20.4% higher year-on-year.
- Revenue has compounded at 34.8% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹1,521 Cr is 15.5% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 58.8% annualised across the period.
- Operating margin stands at 27.7% in Q1 FY2027.
- Operating margin compressed by 80 bps year-on-year.
- Over the last two years operating margin has expanded by 1 bps.
- PBT margin is 23.4%.
- Expenses grew 21.8% against revenue growth of 20.4%.
- Operating profit of ₹2,339 Cr is 17.1% higher year-on-year.
- Operating leverage continues to improve.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 73/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Accelerating | 8,451 | 6,574 | 4,204 | 4,897 | 7,017 | 5,567 | 3,689 | 4,805 | 7,197 | 4,317 |
| Expenses | Accelerating | 6,112 | 5,049 | 3,568 | 3,751 | 5,020 | 4,304 | 3,110 | 3,654 | 5,206 | 3,329 |
| Operating Profit | Volatile | 2,339 | 1,525 | 637 | 1,146 | 1,998 | 1,263 | 579 | 1,151 | 1,991 | 989 |
| Operating Margin | Improving | 27.7% | 23.2% | 15.1% | 23.4% | 28.5% | 22.7% | 15.7% | 24.0% | 27.7% | 22.9% |
| Other Income | Improving | 104 | 44 | 99 | 148 | 77 | 28 | 45 | 24 | 44 | 8 |
| Interest | Stable | 57 | 49 | 47 | 45 | 37 | 41 | 109 | 119 | 129 | 94 |
| Depreciation | Improving | 409 | 357 | 330 | 308 | 306 | 273 | 261 | 257 | 242 | 188 |
| Profit Before Tax | Accelerating | 1,977 | 1,163 | 359 | 941 | 1,732 | 978 | 254 | 800 | 1,663 | 716 |
| Tax | Volatile | 452 | 284 | 99 | 196 | 407 | 246 | 59 | 171 | 401 | 168 |
| Net Profit | Accelerating | 1,521 | 872 | 252 | 741 | 1,317 | 726 | 185 | 620 | 1,253 | 537 |
| Net Margin | Volatile | 18.0% | 13.3% | 6.0% | 15.1% | 18.8% | 13.1% | 5.0% | 12.9% | 17.4% | 12.4% |
Key Takeaways
- Revenue grew significantly to ₹86.5 billion, aided by the consolidation of Twizza in South Africa and strong seasonal demand.
- The board declared a second interim dividend of ₹0.50 per equity share for the financial year 2026.
- VBL successfully extended its Exclusive Bottling Appointment (EBA) with PepsiCo India for a term up to April 2049.
- Strategic portfolio expansion continues with a new alliance with Asahi Group to introduce the 'CALPIS' brand in India.
- Aggressive international expansion noted with the 100% acquisition of Twizza in South Africa and upcoming acquisition of Crickley Dairy.
- Consolidated Net Profit rose to ₹15.25 billion, demonstrating resilient profitability despite rising depreciation and finance costs from recent M&A activity.
Management Guidance
Management focused on integrating recent South African acquisitions (Twizza and Crickley) and expanding the value-added dairy segment through the VBL Kenya/Devyani Food Industries deal scheduled for completion by August 2026.
Sentiment Shift
Improving
Growth is being bolstered by a mix of organic seasonal peaks and high-impact international acquisitions, further secured by the 2049 PepsiCo extension.
Outlook
Optimistic regarding the integration of the African beverage and dairy businesses and the introduction of new brands like CALPIS to the Indian market.
From the Annual Report (Key Quotes)
“The Company and PepsiCo have entered into a revised Exclusive bottling appointment... extension of the EBA for a term up to 30 April 2049.”
“The Company has entered into a business alliance with Asahi Group Holdings to introduce and commercialize the CALPIS brand in India.”
“Twizza Proprietary Limited has become step down subsidiary of our Company w.e.f. 18 March 2026.”
Official Quarterly Documents
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This summary is AI-generated from Varun Beverages Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.