Synopsis: The leading beverage maker reported Q4 CY25 revenue of Rs. 4,335 crore, up 13.5 percent YoY, and net profit of Rs. 260 crore, up 33 percent YoY. Strong volume growth and long-term expansion plans supported investor sentiment despite QoQ softness.
One of the largest players in the beverage industry, which produces and distributes a wide range of carbonated soft drinks, non-carbonated drinks and packaged water, is in stoplight after announcing Q4 Results.
With a market capitalization of Rs. 1,55,757.49 crore, the shares of Varun Beverages Limited were trading at Rs. 460.50, down by 1.2 percent from its previous day’s closing price of Rs. 466.30. In today’s trading session the stock has touched an intraday high of Rs. 492.15, which implies 5.5 percent increase from previous day’s close price.
Q4 CY25 Results
The company reported Q4 CY25 revenue of Rs. 4,334.79 cr, up 13.5 percent YoY from Rs. 3,817.61 cr in Q4 CY24, but down 14.1 percent QoQ from Rs. 5,047.74 cr in Q3 CY25, reflecting seasonal moderation. EBITDA for the quarter stood at Rs. 639.26 cr, rising 10.2 percent YoY from Rs. 579.97 cr.
Net profit came in at Rs. 260 cr, marking a 32.9 percent YoY increase from Rs. 195.64 cr, but falling sharply 65.1 percent QoQ from Rs. 745.19 cr. The quarter showcased strong year-on-year growth across all metrics, but sequential comparisons reveal a slowdown in revenue conversion and profitability, suggesting near-term headwinds impacting operational momentum.
Consolidated sales volume increased 10.2 percent to 237.1 million cases in Q4 CY25, up from 215.1 million cases in Q4 CY24, driven by a 10.5 percent growth in India and a 10.0 percent rise in international markets. The board of directors has recommended a final dividend of Rs. 0.5 per equity share of the face value of Rs. 2 each, subject to shareholders approval.
Other Updates
The company plans to invest up to 30 percent of the equity share capital in FPEL HR2 Energy Private Limited, a special purpose vehicle engaged in generating and supplying solar power in Haryana, to meet its captive power requirements and support energy cost optimisation.
Separately, Varun Beverages Limited has announced the acquisition of a 100 percent stake in Twizza (Pty) Limited, South Africa, through its subsidiary, The Beverages Company Proprietary Limited. The acquisition, signed on 21 December 2025, is subject to regulatory approvals and is valued at approximately ZAR 2,095 million, with completion expected on or before 30 June 2026.
During CY2025, the company’s net capitalised capex stood at around Rs. 4,500 crore (including Rs. 1,650 crore incurred in CY2024), largely focused on capacity expansion and infrastructure. This comprised Rs. 1,700 crore for four greenfield plants at Prayagraj, Buxar, Damtal and Mendipathar, Rs. 300 crore for brownfield expansion at Sricity and Gorakhpur.
The company invested Rs. 1,300 crore in international operations across DRC, Morocco, Zimbabwe and South Africa. The remaining capex was allocated towards visi-coolers, bottles, pallets, vehicles and other assets, while CWIP and capital advances stood at around Rs. 540 crore as of December 31, 2025.
Management View
Management highlighted that CY2025 saw steady execution despite weather-related challenges in India. For the full year, consolidated volumes rose 7.9 percent, driving revenue growth of 8.4 percent and EBITDA growth of 7.2 percent, while PAT increased strongly by 16.2 percent to Rs. 30,620.4 million, underscoring the resilience of the business model. Although heavy rainfall impacted domestic volumes during parts of the year, performance improved in Q4 with India volumes growing 10.5 percent, supported by a strong distribution network, brand strength, and gradual stabilisation of new plants and backward integration facilities.
International operations continued to perform well, led by Africa, with Q4 international volumes rising 10.0 percent, supported by expansion in South Africa, improved trade reach, and supply-chain efficiencies. Management remains confident about long-term growth, backed by a strong balance sheet, ongoing capacity additions, portfolio expansion, strategic acquisitions such as Twizza in South Africa, and continued investments in distribution and cold-chain infrastructure.
Varun Beverages Limited is a leading player in the beverage industry and among PepsiCo’s largest franchisees globally outside the US. It manufactures and distributes a diversified portfolio of carbonated and non-carbonated beverages, including packaged drinking water, under iconic PepsiCo brands such as Pepsi, Mountain Dew, Sting, Seven-Up, Mirinda, Tropicana, Slice, Gatorade, and Aquafina.
Associated with PepsiCo for over three decades, VBL has steadily expanded its licensed territories, product range, SKUs, and distribution network. The company currently operates across 26 states and 6 union territories in India. Internationally, VBL holds franchises across South Asia and Africa, including Nepal, Sri Lanka, Morocco, South Africa, Zambia, Zimbabwe, and others, with additional distribution rights in select African markets.
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