Varun Beverages profit rises 13.5% but shares fall on margin squeeze
PepsiCo bottler Varun Beverages grew profit 13.5% in the September quarter, but higher packaging and sugar costs hit margins.
Varun Beverages, PepsiCo’s largest bottler outside the US, reported a 13.5% year-on-year increase in net profit for the quarter ended September 2026. The company follows a calendar financial year, so this is its third quarter.
Revenue grew strongly in both India and its international markets. However, operating margins narrowed because of higher packaging costs and a jump in sugar prices, which put pressure on gross margins.
The weaker margins weighed on the stock. Shares fell around 3% after the results, according to market reports.
The company also strengthened its long-term tie-up with PepsiCo by extending their licensing agreement until 2049. Its board announced a dividend alongside the results.
Key numbers
- Net profit: +13.5% YoY
- PepsiCo licence extended to: 2049
- Share reaction: about −3% after results
This article is a summary for information only and is not investment advice. Figures are as reported by the sources above; please verify with the original filing or report before making any decision.
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