Varun Beverages on Tuesday reported a 15.5 percent year-on-year (YoY) rise in its consolidated net profit to Rs 1,521 crore for the April-June quarter, aided by strong volume growth across India and international markets. However, the earnings fell short of market estimates, dragging its shares lower.

The company had posted a net profit of Rs 1,317 crore in the corresponding quarter of the previous financial year.

According to a CNBC-TV18 poll, the company was expected to report a net profit of Rs 1,570 crore.

Total revenue from operations rose 21 percent to Rs 8,650 crore during the quarter under review from Rs 7,163 crore in the year-ago period.

The revenue also missed the CNBC-TV18 estimate of Rs 8,565 crore.

Varun Beverages and PepsiCo also entered into a revised Exclusive bottling appointment and trademark license agreement for India on May 21, 2026, the company said.

Ravi Jaipuria, Chairman – Varun Beverages said, "We also extended our exclusive bottling and trademark licence agreement with PepsiCo in India until April 2049 and removed the earlier restriction requiring VBL to operate solely as an SPV for PepsiCo's business, strengthening our long-term partnership and creating greater operational flexibility to pursue opportunities that can deliver scale, and synergies.

Following the results, shares of Varun Beverages declined 7.32 percent to Rs 430.50 per share on the NSE.

Meanwhile, the company's Board of Directors approved a second interim dividend of Re 0.50 per equity share of face value Rs 2 each.

The second interim dividend will be paid on and from August 4, 2026, to shareholders whose names appear in the Register of Members of the company or in the list of beneficial owners maintained by the depositories as on August 1, 2026, the company said in an exchange filing.

Its EBITDA rose 17 percent to Rs 2,344 crore during the quarter from Rs 1,999 crore a year ago. The EBITDA margin stood at 27.1 percent as against 28 percent in the year-ago period.

The company said its India business recorded volume growth of 14.4 percent during the quarter.

"In India, we saw healthy volume growth in twenties since the onset of the season, i.e. from March onwards, except for the month of April, which was about flat, resulting in overall volume growth for the quarter of 14.4 percent," the company said.

It added that international volumes included 11.8 million cases during the quarter following the acquisition of Twizza in South Africa.

Consolidated sales volume increased 19.8 percent to 466.7 million cases in the April-June quarter of CY2026 from 389.7 million cases in the corresponding quarter of CY2025, driven by volume growth of 14.4 percent in India and 38.4 percent in international markets.