Analysts/Institutional Investor Meet/Con. Call Updates

November 4, 2026 National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, Block G, C/1, Bandra Kurla Phiroze Jeejeebhoy Towers Complex, Bandra (E), Mumbai – 400 051 Dalal Street, Mumbai – 400 001 Email: cmlist@nse.co.in Email: corp.relations@bseindia.com Symbol: VBL Security Code: 540180 Sub: Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015: Transcript of Investors & Analysts Conference Call Dear Sir/Madam, Transcript of Investors & Analysts Conference Call held on October 30, 2026 i.e. post declaration of Unaudited Financial Results of the Company for the Quarter and Nine Months ended September 30, 2026 is enclosed. The same is also being uploaded on website of the Company at www.varunbeverages.com. You are requested to take the above on record. Yours faithfully, For Varun Beverages Limited Ravi Batra Chief Risk Officer & Group Company Secretary Encl.: As above Varun Beverages Limited Q3 & 9M CY2026 Earnings Conference Call Transcript October 30, 2026 Moderator: Ladies and gentlemen, good day, and welcome to Varun Beverages Limited's Earnings Conference Call. I now hand the conference over to Mr. Anoop Poojari from CDR India. Thank you, and over to you, Mr. Poojari. Anoop Poojari: Thank you. Good afternoon, everyone, and thank you for joining us on Varun Beverages Q3 CY2026 earnings conference call. We have with us Mr. Varun Jaipuria, Executive Vice Chairman and Whole-Time Director, and Mr. Raj Gandhi, President and Whole-Time Director of the company. Mr. Ravi Jaipuria, Chairman of the company, has had to excuse himself from today's call due to personal reasons. We will begin the call with opening remarks from the management, following which we will have the forum open for a question-and-answer session. Before we proceed, I would like to point out that some statements made in today's call may be forward- looking in nature, and a disclaimer to this effect has been included in the results presentation shared with you earlier. I will now request Mr. Varun Jaipuria to make his opening remarks. Varun Jaipuria: Good afternoon, everyone, and thank you for joining us on our earnings conference call. I hope you have had a good chance to review our results presentation for the third quarter and nine months ended September 30, 2026. We are pleased to report a strong performance in the third quarter of CY2026. Consolidated sales volume revenue grew 28.7% with a volume growth of 22.5% in India and 39.9% in international markets. Revenue from operations increased by 33.2% year-on-year to Rs. 66,075.6 million, while EBITDA grew 25.1% to Rs. 14,267.1 million. Higher packaging costs weighed on margins during the quarter, Page 1 of 21 although improved realizations and operating leverage from strong volume growth helped partially offset these pressures. In India, we continue to witness healthy volume growth during the quarter, extending the positive trend seen since May. This performance was supported by our extensive distribution network, expanded manufacturing capacities and ongoing investments in chilling infrastructure. We also saw improved realizations supported by growth in higher-value categories such as dairy and the introduction of premium offerings including ‘Ad Rush’ and the ‘Evervess’ mixers range. Our international business continued to make strong progress during the quarter with Africa remaining a key continent for expansion. With effect from 1st August 2026, the merger of Twizza with BevCo has been completed, and we expect to unlock significant operational synergies in the coming quarters. During the quarter, we have also started beverage operations in Kenya and introduced two new beverage brands, ‘BOLT UP’ and ‘XTREME FIZZ’, marking another step towards strengthening our footprint in the fast-growing African region. We also entered into an exclusive distribution agreement with Mondelez in Zimbabwe, further broadening our product offering in the market. We are also taking measured steps towards diversifying our business into adjacent categories. The incorporation of KIVA Spirits and Company Limited marks an important step in exploring opportunities in ready-to-drink beverages, alcoholic beverages and allied products. Our approach will remain focused on pursuing opportunities that leverage our execution capabilities and offer attractive long-term growth potential. In line with our dividend policy, the Board of Directors have approved an interim dividend of 25% of the face value, Rs. 0.50 per share, resulting in total cash outflow of Rs. 1,691 million. Looking ahead, our focus will remain on driving growth across our existing markets, supported by investments we have already made over the recent years. Alongside this, we will selectively pursue opportunities to broaden our business while maintaining a clear emphasis on profitability and long-term value creation. I would now like to invite Mr. Gandhi to share the key highlights of our operational and financial performance. Thank you. Page 2 of 21 Raj Gandhi: Thank you, Mr. Vice Chairman. Good afternoon, and a warm welcome to everyone joining us today. Let me take you through the financial and operational performance of the third quarter and nine months ended 30th September 2026. Revenue from operations net of excise duty and GST increased by 33.2% year-on- year to the level of Rs. 66,076 million in Q3 CY2026. For 9M CY2026, revenue grew by 23.3% to the level of Rs. 218,146 million. Growth during the quarter was primarily driven by a 28.7% increase in consolidated sales volume to the level of 354.4 million cases in India. Volume grew by a strong 22.5% during the quarter, while international territories recorded robust growth of 39.9%. Consolidated net realization per case for beverages improved by 2.2% year-on-year, supported by a 0.5% increase in India on account of growth in high-value categories and further launch of premium categories like Ad Rush, Evervess mixers range, calibrated discounting and efficient price-pack architecture. In international markets, realization per case improved on account of improved realization in South Africa and foreign exchange impact. In terms of volume mix, carbonated soft drinks accounted for 73.3%, juice-based drinks for 4.8% and packaged drinking water for 21.9% of total sales volume during the quarter. Coming to margins, gross margin moderated by 334 basis points year-on-year to 53.1% in Q3 calendar year 2026, primarily due to higher packaging material costs, including preforms, shrink films, closures, cans, arising from geopolitical disruptions. However, packaging cost contributed approximately 300 bps of pressure on gross margin. In addition, sales of non-beverage products such as preforms and caps in India increased by approximately 104% during the quarter. Given their higher COGS, these products had an impact of approximately 100 basis points on gross margin in India. The impact of around a 16% increase in sugar price was largely offset by a higher proportion of low sugar and no sugar products in India with their share increasing from 44% levels in the corresponding Q3 of 2025 to the level of 88% in the Q3 of the 2026 in India, almost double. This is after accounting for the sharing of sugar reduction benefits with PepsiCo through concentrate cost as part of the transition to a low sugar portfolio. EBITDA increased by 25.1% year-on-year to the level of Rs. 14,267 million in Q3 CY2026 with EBITDA margin at 21.6%. The margin moderated only by 140 basis points in spite of higher material costs year-on-year, primarily due to the contraction in gross margin, primarily offset by operating leverage from robust volume growth Page 3 of 21 across India and international territories. Importantly, despite the supply chain disruptions and input cost pressures arising from geopolitical developments, EBITDA margins in India remained broadly stable on a year-to-year basis during 9M CY2026. PAT increased by 13.5% year-o [Showing first 8,000 characters — download PDF for full document]