Varun Beverages Ltd (VBL), PepsiCo's largest franchise bottler outside the US, is increasingly relying on its international operations to drive growth, with overseas volumes expanding at nearly three times the pace of its India business during the June quarter.International volumes jumped 38.4% year-on-year in the second quarter of CY2026, compared with 14.4% growth in India, helping consolidated sales volumes rise 19.8% to 466.7 million cases. The strong overseas performance was aided by the inclusion of 11.8 million cases from Twizza, the South African beverage company acquired earlier this year.The robust volume growth, coupled with improved realisations in international markets, lifted consolidated net revenue by 20.4% to Rs 84,512.3 million, while net profit rose 15.1% to ₹15,253.6 million during the quarter.Chairman Ravi Jaipuria said the international business maintained strong momentum, with Twizza helping overcome capacity constraints while strengthening the company's manufacturing footprint and route-to-market capabilities in South Africa. He added that VBL has also signed an agreement to acquire the business of Devyani Food Industries (Kenya), which will provide an established distribution network for expanding its carbonated soft drinks and energy drinks business in East Africa.The company noted that India continued to deliver healthy double-digit growth, with volumes rising 14.4% despite April remaining largely flat due to an uneven summer season. VBL attributed the performance to its expanded manufacturing network, wider distribution reach and continued investments in chilling infrastructure.The overseas push also supported profitability. While consolidated EBITDA margins contracted 76 basis points to 27.7% because Twizza currently operates at lower margins, gross margins improved by 44 basis points to 55%, aided by a higher contribution from international operations.Beyond acquisitions, VBL is broadening its international and product strategy. During the quarter, the company extended its exclusive bottling agreement with PepsiCo in India until 2049, with the revised pact removing the earlier restriction that required it to operate solely as a special purpose vehicle for PepsiCo's business. The company also entered into a franchise agreement with Japan's Asahi Group to introduce the CALPIS fermented dairy beverage brand in India, marking its entry into the value-added dairy segment.