Varun Beverages Limited — Q1FY27 earnings call summary

Filed 28 July 2026 · Company audio recording

Geopolitical tensions impacting input costs but margins expected to be maintained through pricing and efficiencies.
Gross margin improved 44bps YoY to 50%, supported by higher international mix and low/no sugar products (73% of volume).
Temporary regulatory confusion on energy drinks labeling resolved; no further regulatory headwinds expected.
Consolidated sales volume grew 19.8% YoY in Q2 CY26; India volume up 14.4% despite April softness.
Management confident of sustained double-digit growth in India, targeting 20%+ volume growth post-March season.
April volume softness due to El Nino weather impact; minor supply issue with cans (~1-2% of business).
Pricing stable despite inflation; raw material costs averaged to mitigate volatility; operational efficiencies partly offset higher distribution expenses.
Capex of Rs. 9.5 bn in H1 CY26 including Rs. 2 bn brownfield expansion in India and Rs. 1 bn snack plant in Zimbabwe.