Varun Beverages falls 8% post Q2 results; margin contraction hits sentiment

Varun Beverages Q2 results: Varun Beverages shares plunged as much as 8 per cent on Tuesday after the company announced its financial results for the second quarter and half year ended June 30, 2026. 

 

In an exchange filing, the Pepsi bottler said that its net profiit and revenue grew in double-digit but Ebitda magin contracted due to consolidation of Twizza business.

 

As of 1:15 PM, Varun Beverages shares traded 7.2 per cent lower at ₹431 on the National stock Exchange (NSE). The stock touched an intraday low of ₹426.65.

 

In comparison, the Nifty 50 index traded 0.08 per cent lower at 23,978.

 

 

For the quarter ended on June 30, Varun Beverages said that its PAT increased by 15.1 per cent Y-o-Y to ₹1,525.3 crore, driven by strong volume growth in India and International territories. The company had earned a profit of ₹1,325 crore in the same quarter a year ago. 

 

Revenue from operations grew by 20.4 per cent Y-o-Y to ₹8,451.2 crore in Q2 CY2026 as compared to ₹7,017 crore in Q2 of  CY2025. 

 

Ebitda in the June quarter increased by 17.2 per cent to ₹2,343 crore in the quarter under review from ₹1,998.7 crore in Q2 of the last year. Ebitda margins declined by 76 bps to 27.7 per cent in Q2 CY2026 due to consolidation of Twizza business, which currently operates at lower margins. 

 

The gross margins, the company said, improved by 44 bps to 55 per cent, supported by higher mix of International business.

 

Consolidated sales volume grew by 19.8 per cent to 466.7 million cases in the reporting quarter from 389.7 million cases in Q2 CY2025, driven by volume growth of 14.4 per cent in India and 38.4 per cent in international territories. 

For H1 CY2026, Varun Beverages said that its PAT came in higher by 16.9 per cent to ₹2,404 crore from ₹2,056.8 crore in H1 CY2025. Its revenue from operations in H1 stood at ₹15,025.4 crore, up 19.4 per cent from ₹12,584.3 crore reported in H1 CY2025. 

 

Ebitda for the six-month period under review (January to June of CY2026) increased by 18.7 per cent to ₹3,871.9 crore from ₹3,262.7 crore in the same six-month of the last CY.