Mumbai: Varun Beverages continued its upward momentum in Q3 FY26 with net profit rising by Rupees 643.6 crore over the same quarter last year. Revenue grew from Rupees 3,817.6 crore in Q3 FY25 to Rupees 4,334.8 crore in Q3 FY26, showcasing a well-diversified performance across markets. Total comprehensive income surged nearly 91 percent YoY to Rupees 5,201.5 crore, driven by foreign currency translation gains and other non-core items.
Operational Leverage, Cost Base Support Margins
Year-on-year, total expenses grew by 12.9 percent to Rupees 4,072.4 crore in Q3 FY26, nearly matching revenue growth, thereby preserving margin profile. Notable increases were seen in employee expenses and depreciation, aligned with business expansion. EPS (basic and diluted) improved to Rupees 0.74 from Rupees 0.56 a year ago, reflecting bottom-line strength and improved capital productivity.
Strategic Moves & Shareholder Initiatives
During the quarter, the board recommended a final dividend of Rupees 0.50 per share, reaffirming its consistent capital return policy. Additionally, the company approved an equity investment of up to 30 percent in FPEL HR2 Energy Pvt Ltd — a strategic step toward securing renewable energy for its Haryana facilities, likely to reduce long-term power costs.
Nine-Month Performance Highlights Strength
For the 9-month period ended December 2025, Varun Beverages clocked Rupees 22,225.6 crore in revenue from operations, up 8.5 percent from the previous year. Net profit rose 16.2 percent YoY to Rupees 3,062 crore, while EPS increased from Rupees 7.95 to Rupees 8.98. These metrics indicate a resilient business model with earnings visibility despite seasonal dips and macroeconomic fluctuations.
Disclaimer: This report is based on publicly disclosed financial results by Varun Beverages. It is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell.
