Varun Beverages’ overseas volumes rise 38.4%, outpacing India growth
Varun Beverages posted 19.8% consolidated volume growth to 466.7 million cases in Q2 CY2026, with international volumes up 38.4% versus 14.4% in India. The PepsiCo bottler is adding Kenya operations and plans to launch Asahi’s CALPIS in India.
What happened
Varun Beverages reported 38.4% overseas volume growth in Q2 CY2026 versus 14.4% in India, aided by Twizza. It is acquiring Devyani Food Industries’ Kenya
Key facts
- International volume growth: 38.4% YoY
- India volume growth: 14.4% YoY
- Consolidated volume growth: 19.8% to 466.7 million cases
- Twizza contribution: 11.8 million cases
- Net revenue: Rs 84,512.3 million, up 20.4%
- Net profit: Rs 15,253.6 million, up 15.1%
- EBITDA margin: 27.7%, down 76 basis points
- Gross margin: 55%, up 44 basis points
- India PepsiCo bottling agreement extended until 2049
Why this matters
The Kenya addition and planned CALPIS launch show Varun Beverages is using geographic expansion and brand partnerships to broaden its beverage platform beyond PepsiCo products.
What to watch
- Kenya closing timeline, acquired volume base, integration costs and first-quarter post-acquisition growth.
- International revenue and EBITDA-margin mix versus international case-volume growth.
- Foreign-exchange losses or gains and the extent of currency hedging for African operations.
- Capex, net-debt-to-EBITDA and working-capital movement as new markets are added.
- CALPIS launch geography, pricing, repeat purchases and distribution expansion in India.
- India summer-season demand, rural consumption trends and whether India volume growth reaccelerates from 14.4%.
- PET resin, sugar, packaging and concentrate cost trends, plus the company’s ability to pass through inflation.
- Accelerate Kenya integration through distributor onboarding, capacity optimization and local SKU/pricing calibration.
- Prioritize returnable-glass, affordable pack sizes and localized product mixes in African markets to deepen outlet penetration.
- Use CALPIS to build a non-carbonated, wellness-adjacent beverage platform in India, initially through selective urban and modern-trade distribution.
- Increase cold-chain equipment, salesforce coverage and warehouse capacity in faster-growing international territories.
- Seek procurement, concentrate, packaging and logistics synergies across the enlarged overseas footprint while hedging major currency and commodity exposures.