Varun Beverages’ India volume growth misses expectations despite strong overseas demand
Varun Beverages posted 14.4% India volume growth in Q2CY26, below expectations, while international volumes rose 38.4%. Revenue climbed 20% to ₹8,451 crore, but EBITDA margin fell 76 basis points to 27.7%. Management is banking on dairy, juice and hydration to sustain double-digit India growth.
Varun Beverages reported weaker-than-expected 14.4% India volume growth in Q2CY26, triggering earnings downgrades despite strong overseas demand. Management expects double-digit India growth, supported by dairy, juice and hydration categories, while competition, seasonality and lower margins remain concerns.
Why this matters
The miss follows recent signals of 20% volume growth and 20% Q2 revenue growth, when brokerages stayed bullish despite margin pressure. Motilal Oswal also retained Buy with a Rs 560 target after Q1.
Retail-company signals are accelerating, up 403933% QoQ.