Varun Beverages Q2 Report: 19.6% Net Profit Growth with Rs 5,048 Crore Revenue

Varun Beverages has announced a net profit of ₹741.19 crore, marking a significant increase of 19.62% compared to ₹619.61 crore from the same quarter last year. However, this figure shows a sharp decline of 43.72% from the previous quarter, where the profit was ₹1,317.02 crore in Q1 FY26.

The company’s revenue from operations was recorded at ₹5,047.74 crore, up 2.35% year-on-year from ₹4,932.06 crore. Nonetheless, there was a drop in revenue compared to the previous quarter, which was ₹7,163.02 crore in Q1 FY26.

Improved Sales Volume for Varun Beverages

In the second quarter, the consolidated sales volume for Varun Beverages rose by 2.4%, reaching 273.8 million cases. This growth occurred despite adverse weather conditions across India, which affected local demand. While domestic volumes showed little change, international sales experienced a robust 9% increase, particularly driven by growth in South Africa.

Expansion into Kenya

Varun Beverages is set to expand its market presence by establishing a wholly owned subsidiary in Kenya. The new entity, named Varun Food and Beverages (Kenya) Limited, will focus on locally manufacturing and selling beverages. The company plans to invest KSH 1.25 crore (approximately ₹1 crore) into this new venture, ensuring complete ownership of its operations there.

Current Share Performance

As of now, Varun Beverages shares are trading at ₹482.85, reflecting a rise of 6.32% in intraday trading. Over the last month, shares have climbed about 7%, though they have not performed well over the past year, showing a nearly 20% drop. Year-to-date, the stock is down approximately 25%, highlighting a challenging situation for investors.