Varun Beverages Limited said its case sales rose 28.7% in the quarter ended Sept. 30, 2026, lifting revenue 33.2%, while packaging costs weighed on gross margin.
Net revenue from operations, calculated after excise duty and goods and services tax, reached Rs 66.08 billion. The year-over-year comparison uses restated prior-period figures after a Kenya business combination under common control. Total case sales were 354.4 million, compared with 275.3 million a year earlier. India sales volume rose 22.5%, while international volume grew 39.9%, including 15.3 million Twizza cases in South Africa.
Revenue realization per case increased 2.2% across the business and 0.5% in India. Varun said the improvement reflected a shift toward higher-value products, premium introductions, more measured discounting and its price-pack approach. India represented about 67% of the company’s net operating revenue in fiscal 2025.
Gross margin declined 334 basis points to 53.1%. The company identified higher prices for packaging materials, including preforms, shrink films, closures and cans, as the main source of gross-margin pressure and said geopolitical disruptions contributed to those costs. EBITDA margin also declined, falling 140 basis points to 21.6%. EBITDA increased 25.1% to Rs 14.27 billion, while profit after tax rose 13.5% to Rs 8.31 billion. Varun said stronger volume and operating leverage offset part of the gross-margin pressure. EconoTimes previously covered the company’s Q3 EBITDA margin decline.
The company said sugar prices increased about 16%. In India, low- and no-sugar drinks reached 88% of sales volume, up from 44% a year earlier, largely offsetting the sugar cost increase. On an Oct. 30 earnings call, President and Whole-Time Director Raj Gandhi said the company had changed Sting’s bottle size from 300 ml to 250 ml. Management said it would assess other pack sizes in light of market conditions and competition.
Varun Beverages’ board approved a third interim dividend of Rs 0.50 per share. The record date is Thursday, Nov. 5, and payment is due to begin Nov. 7.
