Varun Beverages posts ₹1,325 crore profit despite dip in revenue
Varun Beverages, the company behind many of PepsiCo's soft drinks in India, just posted a 5% jump in profits for the first quarter of FY26—hitting ₹1,325 crore and beating what analysts expected.
But not everything fizzed: revenue actually dipped by 2.3% to ₹7,334 crore as unseasonal rains put a damper on sales.
Core earnings steady
Even with less money coming in, Varun Beverages kept its core earnings (EBITDA) steady at ₹1,999 crore.
Margins even improved a bit to 28.5%, thanks to smarter operations and currency gains—showing they can stay profitable when things get tricky.
Sales volumes dropped by 3%
Sales volumes dropped by 3%, mostly because India saw a slowdown.
But global markets stepped up: sales outside India grew by over 15%, with South Africa alone jumping more than 16%.
The company also bought half of Everest Industrial Lanka to boost its cooler game.
Zero net debt and ₹515 crore in free cash
With zero net debt and ₹515 crore in free cash, Varun Beverages is sitting comfortably.
Chairman Ravi Jaipuria says they're focused on getting more coolers into stores and making their drinks easier to grab—even when the weather doesn't play nice—which should help them grow going forward.