Varun Beverages’ overseas volumes jump 38.4%, outpacing India in Q2 CY2026

Varun Beverages reported 19.8% consolidated volume growth to 466.7 million cases, led by a 38.4% rise in international volumes. India volumes grew 14.4%, while revenue rose 20.4%. The PepsiCo bottling pact has been extended to 2049.

— Source publishedTue, 28 Jul, 2026, 14:49 IST·First seen Tue, 28 Jul, 2026, 15:12 IST·Source ET Retail

What happened

Varun Beverages reported Q2 CY2026 volume growth led by overseas markets and Twizza. India volumes rose 14.4%, while the company extended its PepsiCo bottling

Key facts

  • International volumes rose 38.4% YoY in Q2 CY2026
  • India volumes rose 14.4% YoY
  • Consolidated sales volumes grew 19.8% to 466.7 million cases
  • Twizza contributed 11.8 million cases
  • Net revenue rose 20.4% to Rs 84,512.3 million
  • Net profit rose 15.1% to Rs 15,253.6 million
  • EBITDA margin fell 76 basis points to 27.7%
  • Gross margin rose 44 basis points to 55%
  • PepsiCo India bottling agreement extended until 2049

Why this matters

The outsized overseas performance highlights the strategic value of expanding and scaling PepsiCo bottling territories beyond India under a long-duration franchise agreement.

What to watch

  • International revenue growth and revenue-per-case relative to the 38.4% overseas volume increase.
  • EBITDA margin, capex intensity and free-cash-flow conversion as overseas capacity and distribution expand.
  • Currency movements and repatriation conditions in major international operating markets.
  • Market-level volume trends, especially whether growth broadens beyond a small set of high-growth territories.
  • India summer demand, monsoon patterns and competitive pricing, which remain important to consolidated profitability.
  • PepsiCo brand/category launches and any additional territory or distribution rights under the extended agreement.
  • Accelerate capacity additions, cold-chain deployment and last-mile distribution in the fastest-growing overseas markets.
  • Prioritize returnable glass, affordable packs and localized SKU mixes to convert volume growth into repeat consumption.
  • Use the PepsiCo pact extension through 2049 to support longer-duration capex, territory development and financing decisions.
  • Increase local sourcing of sugar, packaging and inputs where feasible to limit foreign-exchange and import-cost exposure.
  • Cross-sell energy drinks, juices, hydration and zero-sugar offerings through the expanded international distribution base.