Varun Beverages Reports 20.4% Revenue Growth and Extends PepsiCo India License to 2049

Earnings

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Summary · why it matters

Varun Beverages Ltd reported a 19.8% increase in consolidated sales volume and a 20.4% rise in net revenue from operations for the second quarter of 2026. The company extended its exclusive bottling and trademark license agreement with PepsiCo in India until April 2049, strengthening the long-term partnership. International business maintained strong momentum, with significant contributions from Twiza in South Africa and an agreement to acquire Devyani Foods Industries Kenya Limited. An interim dividend of 25% of face value was declared, resulting in a total cash outflow of approximately Rs 1,691 million. The company remains net debt-free in India with surplus cash of Rs 14,941 million and a reaffirmed Crystal AAA Stable credit rating, though EBITDA margin declined by 76 basis points year-on-year due to the consolidation of the lower-margin Twiza business.

PepsiCo Inc ▲

Impact on stocks 1

Consumer Staples▲ · 1 stocks

▲ PositiveDemandrelevance

PepsiCo's long-term license extension with Varun Beverages in India ensures stable bottling operations and revenue stream.

Off-coverage companies 3

Varun Beverages LtdPrivate▲ Positive

Demandrelevance

Varun Beverages reported 20.4% revenue growth and extended PepsiCo license to 2049, indicating strong demand and long-term partnership.

Devyani Foods Industries Kenya LimitedPrivate▲ Positive

Demandrelevance

Varun Beverages agreed to acquire Devyani Foods Industries Kenya Limited, expanding its international footprint.

TwizzaPrivate▲ Positive

Demandrelevance

Twiza contributed significantly to Varun Beverages' international business momentum.