Varun Beverages’ fizz stays strong, margins sparkle

Varun Beverages reported a strong quarter, with growth led by volumes and margin expansion.

By the numbers

• Revenue up 18.3% at ₹6,721 crore vs ₹5,680 crore YoY
• Profit up 20% at ₹872 crore vs ₹726 crore YoY
• Margin at 22.8% vs 21.6% YoY

Other key numbers:

• Volumes up 16.3% overall
  • India: +14.4%
  • International: +21.4%

Why this worked: this was a volume-led story.

The biggest driver came from international markets, where volumes jumped over 21%, outpacing India. Expansion into newer geographies and deeper distribution helped the company sell more, faster.

Back home, India still delivered steady growth, but pricing softened slightly, meaning the company leaned more on volume growth rather than price hikes.

As the company sold more, its fixed costs got spread out better, so even with slightly lower prices, it still made higher profits.

So the formula was simple: more bottles sold + better scale = higher profits.