Transcript of Investors & Analysts Conference Call.
VBL · price
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Varun Beverages reported strong Q1 CY2026 results with consolidated volumes growing 16.3% YoY (India 14.4%, International 21.4%), revenue up 18.1% to Rs. 65,742 million, and EBITDA up 21% to Rs. 15,289 million. EBITDA margins improved 55 bps to 23.3% with India margins up 112 bps. PAT grew 20.1% to Rs. 8,787 million. The company completed acquisition of Twizza in South Africa (revenue ~Rs. 800 crore) and signed agreement for Crickley Dairy (~Rs. 160 crore). Management highlighted improved realization (down only 1.5% vs 4% prior quarter) due to premiumization, 60%+ dairy growth, and reduced discounting. They have 6 months inventory coverage against inflationary pressures and expect to maintain margins through cost efficiencies from new larger plants (1,000 bottles/minute vs old 200). Bullish on Indian market expecting double-digit growth for 5-10 years. CAPEX guidance for CY26 is less than Rs. 500-600 crore.
Strong quarter with margin improvement and international expansion progressing well. Management is confident on maintaining profitability despite input inflation through inventory positioning and cost efficiencies, with new energy drinks (Ad-Rush, Sting Classic) gaining significant traction.