Varun Beverages announced its Q1 results during the market hours today. Pic source: (AI image for representational purposes)
Varun Beverages announced its Q1 results during the market hours today. Pic source: (AI image for representational purposes)Shares of Varun Beverages closed nearly 6% higher today after the FMCG firm announced its Q1 earnings. Varun Beverages stock price ended 5.79% higher at Rs 519.15 on Monday, compared to the previous stock market close of Rs 490.45. The company announced its Q1 results during the market hours today.
Varun Beverages dividend
The board of directors also recommended a final dividend of Rs 0.50 per equity share with a face value of Rs 2 per share, subject to the necessary approvals.
"The payment of interim dividend of Rs 0.50 per equity share for the financial year 2026 on the total issued, subscribed and paid-up 338,20,94,394 equity shares of the nominal value of Rs 2 each," the company said.
The company fixed the record date on Friday, May 1, 2026. The final dividend will be paid on Tuesday, May 5, to the eligible shareholders.
Varun Beverages Q1 earnings
Varun Beverages reported a 20% rise in Q1 net profit. Profit climbed to 20% to Rs 878 crore in Q1 compared year-on-year with Rs 731 crore in the year ago period. The company follows the calendar year format for reporting its financial results.
Revenue from operations rose 18% to Rs 6,721 crore in the March 2026 quarter for the calendar year ended 2025-26, compared to Rs 5,680 crore in the same period a year ago.
However, company’s input costs in Q1 rose 18% YoY to Rs 3,152 crore compared to Rs 2,671 crore in the same period a year ago.
Varun Beverages’ earnings per share (EPS) climbed to Rs 2.58 apiece in the March quarter compared to Rs 2.15 per share at the corresponding period of the previous financial year.
Gross margins rose 62 basis points (bps) in Q1, led by early stocking of key manufacturing raw materials despite the inflationary situation in the raw material market.
“Gross margins improved by 62 bps at 55.2% in Q1 CY2026, supported by early stocking of key raw materials despite the inflationary raw material environment,” the company said.
Earnings before interest tax depreciation and amortisation (EBITDA) rose 21% to Rs 1,528.90 crore in Q1 2026 against Rs 1,264 crore in the corresponding period a year earlier.
EBITDA margins improved by 55 bps to 23.3% in the first quarter of the calendar year 2026.