Low-sugar fizz, high-cost squeeze: Varun Beverages battles margin pressure

Varun Beverages reported a contraction in gross and EBITDA margins during Q3 CY2026 despite strong revenue growth. The company's revenue from operations increased significantly, driven by robust sales volumes and premium product offerings. Higher packaging costs and a rise in costs of raw materials negatively impacted their margins. However, the shift towards low-sugar products positively influenced sales volume contributions.