News ArticleVarun Beverages Posts 33.2% Revenue Rise and 25.1% EBITDA Growth in Q3 2026, Expanding in African Markets
Q3 volumes climb 28.7% led by 22.5% growth in India and 39.9% internationally; acquires Twizza and begins new beverage operations in Kenya
Varun Beverages Limited announced a 33.2% year-over-year increase in Q3 2026 revenue to Rs. 66,075.6 million and a 25.1% rise in EBITDA to Rs. 14,267.1 million, driven by strong volume growth in India and international markets including South Africa and Kenya. The company completed the Twizza acquisition and expanded its African footprint with new brands and a distribution agreement with Mondelez Zimbabwe.
Varun Beverages Limited
General / Other
Varun Beverages Limited reported a 33.2% year-over-year increase in revenue to Rs. 66,075.6 million for the third quarter ended September 30, 2026, supported by strong volume growth in both India and international markets including South Africa and Kenya, alongside a 25.1% rise in EBITDA to Rs. 14,267.1 million.
Consolidated sales volumes reached 354.4 million cases in Q3 2026, up 28.7% from 275.3 million cases the previous year, with 22.5% growth in India and 39.9% in international territories.
Revenue growth was partly driven by higher realizations per case, aided by premium product launches like Ad Rush and Evervess mixers in India, and foreign exchange impacts in international markets.
The company completed its acquisition and merger of Twizza in South Africa effective August 1, 2026, adding 15.3 million cases sold in Q3 and initiating beverage operations in Kenya with new brands BOLT UP and XTREME FIZZ.
Gross margin declined 334 basis points to 53.1% due to higher packaging costs and increased sales of non-beverage products in India, with a 16% increase in sugar prices mostly offset by a shift toward low and no sugar products.
EBITDA margin slipped 140 basis points to 21.6%, impacted by margin pressure from costs but partly offset by operating leverage and steady margins in India for the first nine months of 2026 despite supply disruptions.
Highlights
- 33.2% revenue increase to Rs. 66,075.6 million in Q3 2026 from Rs. 49,606.9 million in Q3 2025
- Consolidated volume growth of 28.7% to 354.4 million cases with 22.5% growth in India and 39.9% internationally
- Acquisition and merger of Twizza in South Africa completed as of August 1, 2026, contributing 15.3 million cases in Q3
- EBITDA rose 25.1% to Rs. 14,267.1 million, with margin moderating to 21.6%
- Interim dividend announced at Rs. 0.50 per share (25% of face value) amounting to approximately Rs. 1,691 million
- New KIVA Spirits subsidiary incorporated to explore ready-to-drink and alcoholic beverages market in India
Key Data Snapshot
What happened
- Varun Beverages reported a 33.2% increase in revenue for Q3 2026, reaching Rs. 66,075.6 million, driven by 28.7% growth in consolidated sales volume.
- The company completed the acquisition and merger of Twizza in South Africa on August 1, 2026, integrating 15.3 million cases into the quarter's sales.
- It expanded its African presence by starting beverage operations in Kenya and launching new brands BOLT UP and XTREME FIZZ.
- An interim dividend of Rs. 0.50 per share was approved, representing 25% of the face value, totaling approximately Rs. 1,691 million.
Financial performance
- EBITDA increased 25.1% year-over-year to Rs. 14,267.1 million with a 21.6% margin despite pressure from increased packaging costs and sugar prices.
- Gross margin declined by 334 basis points to 53.1%, primarily due to higher packaging material costs and a higher sale of non-beverage products with higher cost of goods sold.
- Revenue growth was supported by an improved realization per case, including a 0.5% increase in India aided by premium product launches and pricing strategy.
- Profit after tax grew 13.5% to Rs. 8,305.9 million, impacted by increased depreciation and finance costs related to acquisitions and funding.
Key details
- Consolidated beverage mix in Q3 2026 consisted of 73.3% carbonated soft drinks, 4.8% juice-based drinks, and 21.9% packaged drinking water.
- Sugar price increases of 16% were largely offset by a higher mix of low sugar/no sugar products increasing from 44% to 88% in India.
- The acquisition of Devyani Food Industries (Kenya) Limited was completed for USD 32 million, accounted as a business combination of entities under common control.
- Varun Beverages signed an exclusive distribution agreement with Mondelez South Africa for chocolate, biscuit, candy, and gum products in Zimbabwe.
Strategic context
- Incorporation of a wholly-owned subsidiary, KIVA Spirits and Company Limited, targeting the ready-to-drink and alcoholic beverage markets in India.
- Focus on growing existing markets through distribution, manufacturing, and chilling infrastructure investments.
- Measured expansion in African territories, aiming to leverage operational synergies and broaden the product portfolio.
- Pursuit of long-term value creation with emphasis on profitability amid ongoing market expansions.
Highlights
- 33.2% revenue increase to Rs. 66,075.6 million in Q3 2026 from Rs. 49,606.9 million in Q3 2025
- Consolidated volume growth of 28.7% to 354.4 million cases with 22.5% growth in India and 39.9% internationally
- Acquisition and merger of Twizza in South Africa completed as of August 1, 2026, contributing 15.3 million cases in Q3
- EBITDA rose 25.1% to Rs. 14,267.1 million, with margin moderating to 21.6%
- Interim dividend announced at Rs. 0.50 per share (25% of face value) amounting to approximately Rs. 1,691 million
- New KIVA Spirits subsidiary incorporated to explore ready-to-drink and alcoholic beverages market in India
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
- Ind AS 103 Business Combinations, Appendix C
More News on General / Other
View allLatest corporate announcements and market updates in General / Other.
GAIL (India) Limited Reports ₹11,611.44 Crore Profit Before Tax for Q2 and H1 FY2026-27
GAIL (India) Limited announced its unaudited standalone financial results for the quarter and half year ended September 30, 2026, recording ₹11,611.44 crore profit before tax for the half year and total income of ₹86,116.52 crore.
Read Full Story
Max Healthcare Approves Q2 2026 Financial Results and Major Expansion Projects in Noida and Vaishali
Max Healthcare Institute Limited has approved its unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026. The Board also approved capital expenditure plans totaling approximately ₹190 Crore to expand its hospitals in Noida and Vaishali, and revised the Gurugram hospital project cost and timeline.
Read Full Story
Max Healthcare Q2 FY27 Revenue Rises 20% to ₹3,219 Crore; PAT Increases 10% to ₹448 Crore
Max Healthcare Institute Limited reported a 20% year-on-year increase in gross revenue to ₹3,219 crore for the second quarter ended September 30, 2026, alongside a 10% rise in profit after tax to ₹448 crore. Operational bed capacity expanded by 16% year-on-year to 5,518 beds, supporting increased patient service volume.
Read Full Story
