Varun Beverages Q2 FY27 results: net profit up 11.5% to ₹830.59 crore, revenue up 35.0%

How did Varun Beverages perform in Q2 FY27?

Varun Beverages reported consolidated revenue of ₹6,816 crore for Q2 FY27, up 35.0% from ₹5,048 crore in Q2 FY26. EBITDA rose to ₹1,427 crore from ₹1,147 crore, while EBITDA margin fell 1.8 percentage points to 20.9%. Net profit was ₹830.59 crore, up 11.5%, and basic EPS increased to ₹2.45 from ₹2.19.

Against Q1 FY27, revenue fell 21.2% to ₹6,816 crore from ₹8,651 crore and EBITDA declined 39.1% to ₹1,427 crore from ₹2,343 crore. Net profit fell 45.5% to ₹830.59 crore from ₹1,525 crore, basic EPS declined to ₹2.45 from ₹4.50, and EBITDA margin fell 6.2 percentage points to 20.9%.

On the standalone basis, revenue was ₹3,822.45 crore and profit after tax was ₹658.53 crore, with profit before tax of ₹577.4 crore. The company also filed unaudited standalone and consolidated results for the quarter and nine months ended 30 September 2026, carrying an unmodified opinion from the joint statutory auditors.

What changed in Varun Beverages' costs and profit?

Total expenses rose to ₹5,881 crore in Q2 FY27 from ₹4,253 crore in Q2 FY26, an increase of ₹1,627 crore or 38.3%. Cost of materials was up ₹1,011 crore or 53.3% to ₹2,910 crore, employee cost rose ₹49.24 crore or 8.9% to ₹602.56 crore, finance costs increased ₹26.48 crore or 58.6% to ₹71.69 crore, and depreciation rose ₹112.38 crore or 36.5% to ₹419.98 crore.

Other expenses increased ₹459.11 crore or 37.4% to ₹1,687 crore, while other income fell ₹28.17 crore or 19.0% to ₹119.86 crore. Tax expense was ₹222.02 crore, up ₹26.30 crore or 13.4% from Q2 FY26. There was no exceptional item in either quarter.

The filing did not provide a company-specific explanation for the cost-line movements in the consolidated Q2 FY27 results. In its Q3 CY2026 presentation and earnings call, management separately said higher packaging costs weighed on margins, while improved realisations and operating leverage from volume growth partly offset the pressure.

How did the first half of FY27 go?

For H1 FY27, Varun Beverages reported revenue of ₹22,371.24 crore, up 25.0% from ₹17,890.79 crore in H1 FY26. Total income rose 24.8% to ₹22,640.31 crore from ₹18,144.03 crore, while profit before tax increased 14.1% to ₹4,171.13 crore from ₹3,654.2 crore.

Net profit for the first half was ₹3,202.3 crore, up 14.3% from ₹2,802.04 crore, and basic EPS rose 14.6% to ₹9.43 from ₹8.23. The figures compare H1 FY27 with H1 FY26 on the consolidated basis.

How has Varun Beverages done over the last 8 quarters?

Revenue reached its highest level in the supplied eight-quarter series in Q1 FY27 at ₹8,650.57 crore, before falling to ₹6,815.59 crore in Q2 FY27. It had reached its lowest point at ₹3,817.61 crore in Q3 FY25.

Net profit also peaked in Q1 FY27 at ₹1,525.36 crore and fell to ₹830.59 crore in Q2 FY27, compared with its low of ₹195.64 crore in Q3 FY25. EBITDA margin moved from 27.1% in Q1 FY27 to 20.9% in Q2 FY27, after reaching a low of 14.7% in Q3 FY26.

Revenue rose year on year in each of the last five quarters, while profit rose year on year in each of the last eight quarters. The current direction from Q1 FY27 was lower for revenue, profit and EBITDA margin.

What else did the company announce?

The board approved the unaudited standalone and consolidated results for the quarter and nine months ended 30 September 2026, along with the auditors’ limited review report carrying an unmodified opinion. It also approved a third interim dividend of ₹0.50 per equity share for financial year 2026.

The record date for the third interim dividend was fixed as 5 November 2026, and payment was to begin on 7 November 2026 for eligible shareholders. Varun Beverages follows a 1 January to 31 December financial year, as stated in the filing.

What did Varun Beverages' management say?

Management said gross margin was broadly troughed in Q3 CY2026 at current packaging-price trends, with possible upside from price-pack architecture but no quantified recovery target. It expected international growth and capacity utilisation to continue in the next few quarters and over the longer term, without providing a quantified volume-growth target.

Management planned CY2027 capex of about ₹1,000 crore in India, including a greenfield Visi-coolers plant at Suratgarh, Rajasthan and one PET line. International capex was planned at about $90 million, with a combined range of $90-100 million, for South Africa, Zimbabwe, Morocco and DRC.

Management said India distribution had reached about 4.2 million outlets and targeted roughly a few hundred thousand incremental outlets annually in CY2027. It said the rPET mix, currently close to 25%, was expected to rise as the next plant became operational in one to two quarters; no formal revenue or earnings guidance was provided.

Management identified geopolitical disruptions and an uncertain war timeline as factors inflating packaging-material and fuel-linked costs. It said persistent packaging inflation may require further pack downsizing, pricing changes or trade-margin actions, while capacity constraints remained in Morocco, Zimbabwe and DRC.

Management also discussed Twizza-BevCo synergies, African expansion, premiumisation, low-sugar products, digital ordering, cooler visibility and selective RTD and alcobev diversification through KIVA and partnerships. No analyst questions were listed in the supplied earnings-call record.

How did Varun Beverages shares react?

After the filing appeared, the stock was down 2.0% after five minutes, down 1.4% after 15 minutes and down 1.8% after 30 minutes. It closed the reaction day down 5.5% from the previous close of ₹414.8, compared with a median decline of 1.6% for the Beverages industry and a 0.3% rise in the Nifty 100.

By the next day’s close, the stock was down 4.3% from its pre-results close. Its reaction-day move was 3.9 percentage points below the industry median, while the next-day move was 3.1 percentage points below the median. No five-day or one-month reaction was provided.

Earlier reaction-day moves were mixed: the stock fell 7.4% on 28 July 2026, rose 6.0% on 27 April 2026 and fell 2.9% on 3 February 2026. It later recorded rises of 8.9% on 29 October 2025 and 6.1% on 29 July 2025, followed by declines of 1.7% on 30 April 2025 and 2.0% on 10 February 2025.