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Varun Beverages Limited October 30, 2026 Q3 & 9M CY2026 Results Presentation
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Disclaimer This communication contains certain forward-looking statements relating to the business, financial performance, strategy and results of Varun Beverages Limited (“VBL” or the “Company”) and/ or the industry in which it operates. Such forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These include, among other factors, changes in economic, political, regulatory, business or other market conditions. Neither the Company nor its affiliates or advisors or representatives nor any of its or their parent or subsidiary undertakings or any such person’s officers or employees guarantees that the assumptions underlying such forward- looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this presentation or the actual occurrence of the forecasted developments. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. Given these uncertainties and other factors, viewers of this communication are cautioned not to place undue reliance on these forward-looking statements. 2
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3 Company Overview Vice-Chairman’s Message Sustainability Initiatives Q3 & 9M CY2026 Results Overview Performance Highlights Table of Contents
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337 454 653 737 821 839 82588 115 149 176 303 381 364 425 569 802 913 1,124 1,220 1,189 2020 2021 2022 2023 2024 2025 9M CY2026 India International 4 Total Sales Volumes (mn Cases*) 2020-2025: Sales Volume CAGR: ~23.5% Note: *A unit case is equal to 5.678 liters of beverage divided in 24 bottles of ~ 237 ml each Key player in the global beverage industry with presence across 15 countries and the second largest franchisee of PepsiCo in the world (outside US). Note: Map not to scale 4 Company Snapshot Note: Previous period numbers are restated wherever applicable, please refer foot note on Slide 11
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5 # Manufacturing & Distribution of PepsiCo’s snack foods in Morocco and Zimbabwe and distribution in Zambia; Co-manufacturing of Kurkure Puffcorn in India. ^ Manufacturing & Distribution of own brands is restricted in select territories. * “CreamBell” trademark has been licensed to be used by VBL for ambient temperature value added dairy based beverages. Carbonated Soft Drinks Brands licensed by PepsiCo: Own Brands^: Fruit Pulp / Juice Based Drinks Sports Drink Snacks# Club Soda Energy Drink Packaged WaterIce TeaCarbonated Juice Based Drinks Carbonated Soft Drinks Energy Drink Packaged Water Complete Brand Portfolio Mixers Dairy Based Beverages*
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6 • Production Facilities • Sales & Distribution – GTM & Logistics • In-outlet Management – Visi-Coolers • Consumer Push Management (BTL) - Market Share Gains 34+ Years of Association (agreement in India valid till April, 2049) 90%+ of PepsiCo India Sales Volume Demand Delivery Demand Creation • Trademarks • Formulation through Concentrate • Product & Packaging innovation through investment in R&D • Consumer Pull Management (ATL) - Brand Development Symbiotic Relationship with PepsiCo
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7 VBL- END-TO-END EXECUTION ACROSS VALUE CHAIN ▪ Robust distribution network with strong distribution infra of vehicles, including EVs ▪ Wide network of owned vehicles ▪ Wide presence in retail outlets through visi-coolers ▪ VBL - local level promotion and in-store activation ▪ PepsiCo - brand development & consumer marketing ▪ Experienced sales team ▪ Responsible for category value/volume growth ▪ Path created for reaching out to every 5 th person in the world ▪ Production optimization ▪ Backward integration (3 exclusive + 19 integrated plants) ▪ Innovation (packaging etc.) ▪ Working capital efficiencies ▪ Disciplined capex investment ▪ Territory acquisition ▪ 54 state-of-the-art production facilities ▪ 38 in India & 16 in International territories DISTRIBUTION & WAREHOUSING CUSTOMER MANAGEMENT IN-MARKET EXECUTION COST EFFICIENCIES CASH MANAGEMENT MANUFACTURING Other Raw Materials Bottling Concentrate (PepsiCo) SOLID INRASTRUCTURE ROBUST SUPPLY CHAIN DEMAND DELIVERY MARKET SHARE GAINS MARGIN EXPANSION ROE EXPANSION / FUTURE GROWTH Key Player in the Beverage Industry – Business Model 7
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Executive Vice Chairman’s Message Commenting on the performance, Mr. Varun Jaipuria, Executive Vice Chairman – Varun Beverages Limited said: 8 “We are pleased to report a strong performance in the third quarter of CY2026. Consolidated sales volumes grew by 28.7%, with volume growth of 22.5% in India and 39.9% in international territories. Revenue from operations increased by 33.2% YoY to Rs. 66,075.6 million, while EBITDA grew by 25.1% to Rs. 14,267.1 million. Higher packaging costs weighed on margins during the quarter, although improved realizations and operating leverage from strong volume growth helped partially offset these pressures. In India, we continued 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 beverages 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 01 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 Africa region. We also entered into an exclusive distribution agreement with Mondelez in Zimbabwe, further broadening our product offerings 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 has approved an interim dividend of 25% of the face value, i.e., Rs. 0.50 per share, resulting in a total cash outflow of ~Rs. 1,691 million. Looking ahead, our focus will remain on driving growth across our existing markets, supported by the investments we have made over 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.”
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Key Developments 9 1. Incorporation of a wholly-owned subsidiary company in India - KIVA Spirits and Company Limited: ▪ On 29 August 2026, we have incorporated a wholly-owned subsidiary company in India, to carry on the business of Ready to Drink (RTD), Alcoholic Beverages and allied products. 2. Entered into an Exclusive Distribution Agreement with Mondelez in the territory of the Republic of Zimbabwe: ▪ On 24 September 2026, Varun Beverages (Zimbabwe) (Private) Limited (a subsidiary of our Company) has entered into an Exclusive Distribution Agreement with Mondelez South Africa Proprietary Limited (“Mondelez”) for the exclusive distribution of chocolate, biscuit, candy and gum products of Mondelez in the territory of the Republic of Zimbabwe, with effect from 1 October 2026. 4. Dividend: ▪ In line with the guidelines of Company’s dividend policy, the Board of Director’s have approved an interim dividend @ 25% of face value i.e. Rs. 0.50 per share. Total cash outflow would be ~Rs. 1,691 million. 3. Completion of Merger of Twizza into Bevco, South Africa: ▪ On 02 July 2026, the Board of Directors of Bevco and Twizza approved to merge Twizza with its holding company i.e. Bevco, subject to applicable laws in South Africa. ▪ The above-mentioned merger has been completed w.e.f. 01 August 2026, and we expect to unlock significant operational synergies in the coming quarters.
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215 mn 239 mn 314 mn 365 mn 392 mn 469 mn 275 mn 354 mn - 100 200 300 400 500 Q4 2024 Q4 2025 Q1 2025 Q1 2026 Q2 2025 Q2 2026 Q3 2025 Q3 2026 Quarterly Sales Volumes (Category-wise mn unit cases) Results Overview 10 49,607 66,076 1,76,891 2,18,146 Q3 2025 Q3 2026 9M 2025 9M 2026 Revenue 11,404 14,267 44,008 52,746 Q3 2025 Q3 2026 9M 2025 9M 2026 EBITDA Rs. mn Rs. mn 7,315 8,306 27,721 32,023 Q3 2025 Q3 2026 9M 2025 9M 2026 PAT Rs. mn 33.2% 24.2%24.9% 21.6%23.0% 25.1% 13.5% 23.3% 19.9% 15.5% 16.4% 19.7% 28.7% 11.1% Period Q4 2024 Q4 2025 Q1 2025 Q1 2026 Q2 2025 Q2 2026 Q3 2025 Q3 2026 CSD 158 73% 170 71% 234 75% 268 73% 291 74% 351 75% 201 73% 260 73% NCB 8 4% 11 5% 23 7% 29 8% 29 8% 32 7% 14 5% 17 5% Water 49 23% 57 24% 57 18% 69 19% 72 18% 86 18% 60 22% 78 22% Note: Previous period numbers are restated wherever applicable, please refer foot note on Slide 11
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11 Consolidated Profit & Loss Statement Note: During the quarter ended 30 September 2026, the subsidiary company, namely, VBL Industries (Kenya) Limited acquired business from Devyani Food Industries (Kenya) Limited for a purchase consideration of USD 32 million (Rs. 3,050 Million; 1 USD = Rs. 95.30) with effect from 01 August 2026. The acquisition qualifies as a business combination of entities under common control, as these entities were utimately controlled by the same company both before and after the business combination, and such control was not transitory. Accordingly, business combination has been accounted for in accordance with Appendix C of Ind AS 103, Business Combinations, using the pooling of interests method and acquired assets and liabilities of the combining entities have been recognised at their respective carrying amounts. The financial results/statement for the previous reporting period(s) has been restated as if the business combination had occurred from the beginning of the earliest reporting period(s) presented. The comparative financial results/statement has been restated to give effect to the aforesaid business combination. The restatement has been made for comparative presentation purposes and does not represent a revision of the financial results/statement previously approved and published by the Company, except to the extent of the adjustments arising from the aforesaid business combination. Particulars (Rs. million) Q3 2026 Q3 2025 YoY(%) 9M 2026 9M 2025 YoY (%) 1. Income (a) Revenue from operations 68,155.86 51,124.38 33.3% 223,712.41 181,011.15 23.6% (b) Excise Duty 2,080.28 1,517.44 37.1% 5,566.89 4,119.99 35.1% Net Revenues 66,075.58 49,606.94 33.2% 218,145.52 176,891.16 23.3% (c) Other income 1198.62 1,475.63 -18.8% 2690.71 2,530.33 6.3% 2. Expenses (a) Cost of materials consumed 29,096.15 19,374.15 50.2% 98,401.82 75,473.37 30.4% (b) Purchase of stock-in-trade 1,006.44 889.08 13.2% 3,484.85 2,592.15 34.4% (c) Changes in inventories of FG, WIP and stock-in-trade 891.14 1,349.52 -34.0% (2,084.10) 1,591.90 -230.9% (d) Employee benefits expense 6,025.57 5,642.14 6.8% 19,294.11 16,475.59 17.1% (e) Finance costs 716.91 467.09 53.5% 1,797.92 1,272.38 41.3% (f) Depreciation and amortisation expense 4,199.82 3,123.57 34.5% 11,927.31 9,023.04 32.2% (g) Other expenses 14,789.19 10,947.97 35.1% 46,303.00 36,750.19 26.0% Total expenses 56,725.22 41,793.52 35.7% 179,124.91 143,178.62 25.1% EBITDA 14,267.09 11,404.08 25.1% 52,745.84 44,007.96 19.9% 3. Profit before share of loss of associates and joint ventures (1-2) 10,548.98 9,289.05 13.6% 41,711.32 36,242.87 15.1% 4. Share of loss of associates and joint ventures (22.82) (16.76) -36.2% (105.12) (34.42) -205.4% 5. Profit before tax (3+4) 10,526.16 9,272.29 13.5% 41,606.20 36,208.45 14.9% 6. Tax expense 2,220.24 1,957.19 13.4% 9,583.22 8,487.25 12.9% 7. Net profit after tax (5-6) 8,305.92 7,315.10 13.5% 32,022.98 27,721.20 15.5%
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Discussion on Financial & Operational Performance • Consolidated sales volume grew by 28.7% to 354.4 million cases in Q3 CY2026 from 275.3 million cases in Q3 CY2025, driven by robust volume growth of 22.5% in India and 39.9% in International territories. • Net Revenue from operations grew by 33.2% in Q3 CY2026 to Rs. 66,075.6 million from Rs. 49,606.9 million in Q3 CY2025. • Realization per case - beverages improved by 2.2% at the consolidated level supported by a 0.5% increase in India on account of growth in high value categories and further launch of premium categories (Ad Rush, Evervess mixers range), calibrated discounting and an efficient price pack architecture. • In International markets, realization per case improved on account of improved realization in South Africa and foreign exchange impact. • International volumes includes 15.3 million cases during the quarter from the acquisition of Twizza in South Africa. • CSD constituted 73.3%, JBD 4.8% and Packaged Drinking Water 21.9% in Q3 CY2026. 12 Sales Volumes / Net Revenues Particulars Consolidated Standalone in Rs. Million Q3 CY26 Q3 CY25 Growth Q3 CY26 Q3 CY25 Growth Sales volumes (mn unit cases*) 354.4 275.3 28.7% 217.7 177.6 22.5% Revenue – Beverage sales 62,732.1 47,667.9 31.6% 37,011.5 30,046.0 23.2% Revenue – Non beverage sales 3,343.5 1,939.0 72.4% 1,213.0 593.8 104.3% Total Revenue 66,075.6 49,606.9 33.2% 38,244.5 30,639.8 24.8% Realization per case – Beverages 177.0 173.1 2.2% 170.0 169.1 0.5% Note: 1 *A unit case is equal to 5.678 liters of beverage divided in 24 bottles of ~ 237 ml each Note 2: Previous period numbers are restated wherever applicable, please refer foot note on Slide 11
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Discussion on Financial & Operational Performance 13 • Consolidated EBITDA grew by 25.1% to Rs. 14,267.1 million in Q3 CY2026. The gross margin contraction by 334 bps was partly offset by operational leverage coming from robust sales volume growth in India and International territories resulting in EBITDA margins declining by only 140 bps to 21.6% in Q3 CY2026,. • Despite the significant supply chain disruptions due to geo-political issues in the current year, EBITDA margins in India are still maintained on a YoY basis for the YTD 9 months of the year. EBITDA • Gross margins declined by 334 bps to 53.1% in Q3 CY2026, as the packaging cost (preforms, shrink film, closures, can, etc.) has increased due to geopolitical issues resulting in about 300bps decline in Gross Margins. • Margins were also impacted by higher sale of non-beverage products like preforms, caps, etc. in India, which increased by 104% during the quarter and has a higher COGS, impacting gross margins by about 100bps in India. • The increase in sugar prices by about 16% were largely offset by an increase in mix of low sugar / no sugar products growing from 44% in Q3 CY2025 to 88% in Q3 CY2026 in India. This is after considering the sharing of sugar reduction benefits with PepsiCo as part of concentrate cost for transition to low sugar portfolio. • In 3M CY2026, mix of Low sugar / No sugar products has increased to ~ 86% of our consolidated sales volumes. Gross Margins • PAT increased by 13.5% to Rs. 8,305.9 million in Q3 CY2026 from Rs. 7,315.1 million in Q3 CY2025 driven by strong volume growth in India and International territories. • Depreciation and finance costs increased by 34.5% and 53.5%, respectively, primarily on account of the acquisition of Twizza in South Africa and the associated debt funding. • Other income declined by 18.8% on account of relatively stable currencies during the quarter. PAT
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Performance Highlights (CY2020 – CY2025 & 9M CY2026) 14 65 88 132 160 200 220 218 2020 2021 2022 2023 2024 2025 9M 2026 12 17 28 36 47 50 53 18.6% 18.8% 21.2% 22.5% 23.5% 22.9% 24.2% 0% 5% 10% 15% 20% 25% 30% - 10.00 20.00 30.00 40.00 50.00 60.00 2020 2021 2022 2023 2024 2025 9M 2026 EBITDA EBITDA Margins (%) 36 42 52 71 167 188 226 0.8 0.7 0.7 0.7 0.0 0.0 0.1 0.0 1.0 2.0 3.0 4.0 5.0 - 50.00 100.00 150.00 200.00 250.00 2020 2021 2022 2023 2024 2025 9M 2026 Net Worth Net D/E Rs. bn Rs. bnRs. bn REVENUE CAGR (2020-25) – 27.8% EBITDA CAGR (2020-25) – 33.2% NET WORTH CAGR (2020-25) – 39.3% 4 7 16 21 26 30 325.5% 8.5% 11.8% 13.1% 13.2% 13.7% 14.7% 0.0% 5.0% 10.0% 15.0% 20.0% - 10.00 20.00 30.00 40.00 2020 2021 2022 2023 2024 2025 9M 2026 PAT PAT Margins Rs. bn PAT CAGR (2020-25) – 53.2% Note 2: Previous period numbers are restated wherever applicable, please refer foot note on Slide 11
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300+ Water bodies (ponds & check dams) maintained Using only half of recharged water for manufacturing 1.89 2021 2022 2023 2024 2030 Target 1.70 1.57* 1.56* 1.40 Water consumed Per liter of beverage produced Process Improvements150+ Increase ground water level Reduce water usage (WUR)2x WRR SUSTAINABILITY – Being Water Positive (CDP water rating: A-) -21% till 2025 15 * Steady state WUR was 1.54 times in 2023 and 1.50 times in 2024, the differential is on account of stabilization of 2 new greenfield plants in 2023 and 3 new greenfield plants in 2024. 2025 1.50
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Increase Renewable Energy Increase Plastic Waste Recycle 2021 2022 2023 2024 2025 Solar (Rooftop + Captive Power Solution) & Windmill RE Mix % & kWh million units 79 (16%)58 (13%)21 (6%)18 (7%) POSITIVE CLIMATE ACTIONS 2,000+ EV in trade for last mile 500K+ Plantations (since 2020) Efficient Visi Coolers – R290 (all new coolers starting 2023) 30% by 2030 SUSTAINABILITY – Reducing Carbon Footprint & Circular Economy 16 Net Zero by 2050 2021 2022 2023 2024 2025 70% 80% 86% 88% 100% Ahead of EPR Regulations Pepsi Zero Sugar & Sting energy come in rPET packaging ~22,000 MT used in 2025 50% rPET mix in packaging by 2030 INDORAMA JV 100% 108 (21%) rPET PACKAGING CDP Climate rating: A- CDP Supplier Engagement Assessment rating A
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Conference Call Details 17 Varun Beverages Limited Q3 & 9M CY2026 Earnings Conference Call Time • Friday, October 30, 2026 at 2:00 PM IST Conference dial-in Primary number • +91 22 6280 1141 / +91 22 7115 8042 International T oll Free Number • Hong Kong: 800 964 448 • Singapore: 800 101 2045 • UK: 0 808 101 1573 • USA: 1 866 746 2133
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About Us Varun Beverages Limited (“VBL” or the “Company”) is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world (outside USA). The Company produces and distributes a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo. PepsiCo CSD brands produced and sold by VBL include Pepsi, Pepsi Zero, Mountain Dew, Sting, Adrenaline Rush, Seven-Up, Mirinda, Nimbooz Jeera Soda and Evervess. PepsiCo NCB brands produced and sold by the Company include Slice, Tropicana Juices (100% and Delight), Seven-Up Nimbooz, Gatorade as well as packaged drinking water under the brand Aquafina. VBL has been associated with PepsiCo since the 1990s and have over three decades consolidated its business association with PepsiCo, increasing the number of licensed territories and sub-territories covered by the Company, producing and distributing a wider range of PepsiCo beverages, introducing various SKUs in the portfolio, and expanding the distribution network. As on date, VBL has been granted franchises for various PepsiCo products across 26 States and 6 Union Territories in India. India is the largest market and contributed ~67% of revenues from operations (net) in Fiscal 2025. VBL has also been granted the franchise for various PepsiCo products for the territories of Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe, South Africa, Lesotho, Eswatini & DRC and distribution rights for Namibia, Botswana, Mozambique and Madagascar. 18 For more information about us, please visit www.varunbeverages.com or contact: Raj Gandhi / Deepak Dabas / Manjit Singh Chadha Anoop Poojari / Mitesh Jain Varun Beverages Ltd CDR India Tel: +91 124 4643100 / +91 9871100000 / +91 9810779979 Tel: +91 9833090434 / +91 9619444691 E-mail: raj.gandhi@rjcorp.in E-mail: anoop@cdr-india.com deepak.dabas@rjcorp.in mitesh@cdr-india.com manjit.chadha@rjcorp.in
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Thank You!