Varun Beverages Ltd

- No major capital expenditure (CAPEX) is planned for India in the current year, indicating limited requirement for significant new funding domestically. - Internationally, CAPEX will be moderate, mainly linked to setting up one brownfield capacity in South Africa and acquisition-related expenses like for Twizza in Africa. - The company currently maintains a very low net debt level (Rs. 256 million consolidated) and India business is net debt-free with free cash of approximately Rs. 12,250 million. - The strong balance sheet and cash flow profile were reflected in a CRISIL upgrade to AAA/stable rating. - Ravi Jaipuria mentioned no significant CAPEX this year except for the Twizza acquisition and brewery setup in Africa, suggesting no immediate plans for new large-scale fundraising through debt or equity. - The company appears focused on using existing cash and debt capacity efficiently, rather than raising new funds in the near term.

- CAPEX of ~Rs. 45,000 million was capitalized in CY 2025, including Rs. 17,000 million for 4 greenfield plants in India and Rs. 13,000 million internationally (PET lines, snack plants in Morocco & Zimbabwe, can line in South Africa). - As of December 31, 2025, capital work in progress (~Rs. 5,400 million) mainly for ongoing expansions and sports infrastructure for 2026-2027. - For CY 2026, no major CAPEX planned in India; sufficient existing capacity available. - Internationally, CAPEX mainly in South Africa with one brownfield capacity addition, relatively small. - Acquisition of Twizza in South Africa recently announced; this is a significant inorganic expansion increasing capacity by 70-80%. - Plant setup for Carlsberg alcoholic beverage in Africa planned, with first Greenfield plant expected ready by end of next year. - Focus on capacity expansion in faster-growing territories if volumes increase. - Dividend increase possible if business performs well.

- The company aims to maintain double-digit volume growth in India, targeting mid-teen growth contingent on favorable weather conditions. - International markets, especially Africa (South Africa, Morocco, Zimbabwe), are expected to grow strongly, with South Africa anticipating around 80% growth driven by organic and inorganic capacity expansions. - New product launches, including juice-based drinks under Nimbooz and energy drinks (Ad Rush), will support volume and revenue growth. - Upsizing of packs (e.g., from 250 ml to 400 ml) is largely completed, expected to sustain revenue without major dilution. - Distribution expansion continues in both rural and international markets, with improved cold chain infrastructure aiding growth. - Snacks business in Morocco, Zimbabwe, and Zambia is gaining traction and expected to grow significantly. - Minimal CAPEX in India and moderate CAPEX internationally, focusing on brownfield expansions. - Overall, the company is confident of sustainable volume growth, improved operating leverage, and stable or improved margin profiles in 2026.

- The company maintains a double-digit volume growth target for the current year, especially in India and international markets like Africa, driven by capacity expansions and market opportunities. - India standalone EBITDA margins are expected to be maintained around 22%-23%, despite current levels at 26%, reflecting a realistic outlook amid volume-value gaps and operational leverage. - International margins are expected to improve and move closer to Indian margins within the next couple of years due to backward integration and increased scale. - The acquisition of Twizza in South Africa will be margin and capacity accretive, enhancing economies of scale and freight efficiencies. - Capital expenditures are limited, with primary investments in Africa (greenfield plants and brewery setup), supporting future volume growth and margin expansion. - Overall, the company expects improved operating leverage, consistent margin performance, and EPS growth driven by volume increases, cost efficiencies, and strategic expansions.

- The transcript does not explicitly mention the current or expected order book or pending orders. - Instead, the discussion focuses on capacity expansions, including: - Setting up a brewery in Africa. - Acquisition of Twizza in Africa (pending regulatory approval) to expand capacity and market reach. - Addition of new plants in India and international markets, with capacity additions of 40%-45% over the past two years. - No major CAPEX expected in India for the current year; some brownfield expansion in South Africa. - Capacity utilization is currently adequate, with 50% more available capacity than current volumes. - Management is cautious and prefers to assess season and volume trends before further expansions. - The outlook remains positive with plans for further capacity scaling based on market demand in specific territories.