Varun Beverages backs double-digit growth, avoids aggressive ₹10 cola push

Despite a weather-hit June quarter that missed estimates, Varun Beverages expects sustained double-digit volume growth, led by dairy, Nimbooz and low- and no-sugar drinks. The PepsiCo bottler will not chase the low-margin ₹10 segment aggressively amid Campa Cola competition.

— Source publishedTue, 28 Jul, 2026, 20:23 IST·First seen Tue, 28 Jul, 2026, 20:24 IST·Source CNBC-TV18 · Companies

What happened

Varun Beverages missed Q2 estimates after weather-hit April demand, but expects continued double-digit volume growth. It will not aggressively pursue the

Key facts

  • Q2 consolidated revenue: ₹8,451.2 crore, up 20.4% YoY
  • EBITDA: ₹2,343 crore, up 17.2% YoY
  • EBITDA margin: 27.7%, versus 28.5% a year earlier
  • Net profit: ₹1,525.3 crore, up 15.1% YoY
  • Domestic volume growth: 14.4%
  • Growth in most months after April: over 20%
  • Value-added dairy beverage growth: over 40%
  • Nimbooz growth: over 30%
  • Low- and no-sugar products: around 73% of sales volumes
  • Share price close: ₹429.50, down 7.5%
  • Stock decline in 2026: about 13%

Why this matters

The strongest partnership or acquisition opportunities sit in scalable dairy, hydration and better-for-you beverage adjacencies, where Varun Beverages is seeing growth without relying on low-margin ₹10 colas.

What to watch

  • Quarterly domestic volume growth remaining above 10% and whether growth is broad-based beyond carbonated soft drinks.
  • Gross-margin and EBITDA-margin movement, especially any rise in promotional spend or trade incentives.
  • Nimbooz and value-added dairy growth rates, repeat purchase indicators and distribution expansion.
  • Campa Cola's ₹10-pack availability, retailer margins, cooler deployment and expansion outside core markets.
  • Summer temperatures, monsoon timing and rural consumption trends during the next peak beverage season.
  • Management commentary on pricing, affordability packs, channel inventory and capacity utilization.
  • Prioritize cold-chain placement, outlet expansion and visibility for dairy, Nimbooz and zero/low-sugar SKUs rather than broad ₹10-pack discounting.
  • Use targeted affordability packs in price-sensitive regions without resetting national cola pricing or margins.
  • Increase cross-category retailer incentives to secure cooler space and shelf visibility against Campa Cola.
  • Lean on PepsiCo innovation, regional flavors and premium/smaller-pack architecture to defend consumers trading across price points.
  • Maintain selective capacity and distribution investment in high-growth dairy and non-carbonated categories.