Varun Beverages Q2 and H1 CY2025 Results: PAT Up 5% to ₹1,325 Crore, Revenue Down 2.5%

On July 29, 2025, Varun Beverages Limited (VBL) announced its financial results for the quarter and half-year ended June 30, 2025.

• Revenue from operations fell by 2.5% YoY to ₹7,017 crore in Q2 CY2025 due to abnormal unseasonal rains affecting summer demand in India.
• Sales volume dropped 3% YoY to 389.7 million cases. Indian volumes declined by 7.1%, while international volumes rose 15.1%, led by South Africa (+16.1%).
• Net realisation per case rose by 0.5%, supported by better pricing in international markets.
• EBITDA grew slightly by 0.4% to ₹1,998.8 crore, with EBITDA margins improving by 82 basis points to 28.5%, despite increased fixed costs from new plants.
• Net Profit (PAT) rose 5% YoY to ₹1,325.5 crore, aided by operational efficiency and lower finance costs.

Varun Beverages H1 CY2025 Performance Overview

• Revenue for H1 CY2025 increased by 9.3% YoY to ₹12,584 crore.
• EBITDA was up by 9.5% at ₹3,262.7 crore.
• PAT increased by 13.6% to ₹2,056.8 crore.
• Products with low/no added sugar contributed ~55% of total sales volume during the period.

Key Updates and Growth Initiatives

• Morocco operations began production of PepsiCo’s snack brand Cheetos, marking VBL’s entry into the snacks segment.
• In South Africa, capacity was boosted with a new can line in Durban. Land acquisition near the Boksburg facility is underway, pending regulatory approval.

Investment in Cooler Manufacturing

VBL acquired a 50% stake in Everest Industrial Lanka Pvt. Ltd., a Sri Lankan company that manufactures visi-coolers and related equipment.

Dividend Announcement

The Board approved a second interim dividend of ₹0.50 per share (25% of face value), resulting in a total cash outflow of ₹169.1 crore.

Read More: L&T Tech Secures $50 Million Order From a Leading Energy Company!

About Varun Beverages Limited

Varun Beverages is a major PepsiCo franchisee and among the largest in the world outside the U.S. It manufactures and distributes a variety of carbonated and non-carbonated beverages, including brands like Pepsi, Mountain Dew, 7UP, Slice, Tropicana, and Aquafina.

Varun Beverages Share Price Movement

As of July 29, 2025, Varun Beverages share price (NSE: VBL) is trading at ₹502.95, up 3.33% for the day. The stock opened at ₹486.10 and touched a high of ₹504.45 and a low of ₹478.05. It has a market capitalisation of ₹1.70 lakh crore, a P/E ratio of 59.38, and a dividend yield of 0.25%. The 52-week high and low are ₹681.12 and ₹419.55, respectively, with a quarterly dividend amount of ₹0.31 per share. 

Conclusion

Despite weather-related challenges in India, Varun Beverages managed to maintain margins and grow profit in Q2 2025. With continued international growth, capacity expansions, and diversification into the snacks business, the company remains well-positioned for long-term success.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.