Varun Beverages Dec qtr profit up 33 pc to Rs 260 cr

New Delhi, Feb 3 (PTI) Varun Beverages Ltd, PepsiCo’s largest franchise bottler, on Tuesday reported 32.9 per cent increase in consolidated net profit to Rs 260 crore for December quarter 2025, helped

by volume growth.

The company, which follows the calendar year as its financial year, had posted a net profit of Rs 195.64 crore for the October-December period a year ago, according to a regulatory filing from Varun Beverages Ltd (VBL).

Revenue from operations was up 13.54 per cent to Rs 4,334.79 crore in December quarter 2025. It stood at Rs 3,817.61 crore a year ago.

Consolidated sales volume in the quarter “grew by 10.2 per cent to 237.1 million cases from 215.1 million cases in Q4 CY2024. Sales volumes in India grew 10.5 per cent, and international markets grew by 10 per cent,” said an earnings statement by the company.

Its EBITDA in the quarter increased by 10.2 per cent to Rs 639.26 crore in Q4 2025 from Rs 579.97 crore in Q4 2024.

Total expenses of VBL were up 14.8 per cent to Rs 4,433.90 crore in December quarter. Total consolidated income was at Rs 4,433.90 crore, up 14.8 per cent.

Total profit for the year 2025 for VBL, one of the largest franchisees of PepsiCo in the world (outside the US), was at Rs 3,062.04 crore, up 16.23 per cent. It was at Rs 2,634.28 crore in 2024.

“PAT increased by 16.2 per cent driven by volume growth, lower finance cost and higher other income which includes interest on deposits in India and favourable currency movement in the international territories,” it said.

Total consolidated income, which includes other income was up 9.58 per cent to Rs 22,577.93 crore.

In 2025, consolidated sales volume of VBL, whose operations span across 10 countries with franchise rights and additional 4 countries with distribution rights, grew by 7.9 per cent to 1,213.1 million cases.

Commenting on the results, Chairman Ravi Jaipuria said 2025 was marked by steady execution, despite weather-related disruptions in India during the peak summer season.

“Volume growth in India was impacted during parts of the year due to unprecedented heavy rainfall throughout the year. However, performance improved meaningfully in Q4, with domestic volumes growing by 10.5 per cent, reflecting the strength of our wide distribution network and strong brand portfolio,” he said.

The greenfield plants and backward integration facilities commissioned during the year are progressively stabilising and are expected to support higher volumes and operating leverage in the upcoming season, Jaipuria added.

“Our international operations continued to scale well, led by Africa. International volumes grew by 10 per cent in Q4, with South Africa delivering healthy volume growth, supported by expansion in general trade reach, addition of visi-coolers and continued progress on backward integration and capacity enhancement, strengthening supply chain efficiency and cost competitiveness,” he said.

Over the outlook, Jaipuria said he remains confident in the long-term growth potential across India and its international markets.

“Supported by favourable demographics and rising incomes, and backed by adequate capacities, a diversified portfolio and a strong distribution network, we believe we are well positioned to deliver sustained and profitable growth and create long-term value for all stakeholders,” he said.

Meanwhile, in a separate filing VBL said its board in a meeting on Tuesday recommended a final dividend of 50 paise per equity share of the nominal value of Rs 2 for financial Year ended December 31, 2025.

Shares of Varun Beverages Ltd on Tuesday settled at Rs 451.30 apiece on BSE, down 3.26 per cent from the previous close. PTI KRH KRH ANU ANU