Varun Beverages Q2 results: Standalone net profit rises 5% to ₹1,325 crore; check details here

Varun Beverages, a beverage company, reported a 5% increase in its standalone net profit to ₹1,325.4 crore in the second quarter of the calendar year 2025 as compared to ₹1,261.8 crore a year back, according to a regulatory filing on Tuesday, July 29. The company follows the calendar year as its fiscal year.

Its revenue from operations declined 2.5% to ₹7,017.3 crore in Q2 CY25, compared to ₹7,196.8 crore a year back.

The company's board also approved an interim dividend of ₹0.50 per equity share for the CY2025. The record date is August 2, while the payment date is August 5.

The beverage firm's EBITDA registered a modest 0.4% YoY growth, amounting to ₹1,998.77 crore. EBITDA margins increased by 82 basis points (bps) in the quarter under review to 28.5% from 27.7% in Q2 CY2024, in spite of an increase in fixed overheads due to new capacity being commissioned at four greenfield plants in India which all are yet to yield incremental volumes.

At 12:24 PM, shares of Varun Beverages were trading 1.88% higher at ₹495.90 apiece on the NSE.

• Consolidated sales volume fell 3.0% to 389.7 million cases in Q2 CY2025, down from 401.6 million cases in Q2 CY2024, mainly due to unseasonal rainfall across India.

• India volumes declined by 7.1%, while international volumes rose 15.1%, with South Africa alone growing at 16.1%, partially offsetting the overall drop.

• Net realisation per case at the consolidated level rose 0.5%, led by a 6.6% improvement in international markets.

• Gross margins held steady at 54.5% in Q2 CY2025.

• EBITDA margins rose by 82 bps to 28.5% in Q2 CY2025 from 27.7% in Q2 CY2024, despite higher fixed overheads from new greenfield plants in India yet to deliver incremental volumes.

• PAT grew by 5.0% to ₹13,25.49 crore in Q2 CY2025 from ₹12,61.83 crore in Q2 CY2024, supported by operational efficiencies and reduced finance costs.

For the first half of calendar year 2025 (January to June 2025), Varun Beverages reported a 9.3% year-on-year rise in revenue from operations, reaching ₹12.584.31 crore, up from ₹11,514.18 crore in the same period of 2024. In H1 CY2025, the mix of Low / no-added-sugar products was ~ 55% of consolidated sales volumes.

EBITDA grew by 9.5% to ₹3,262.74 crore, compared to ₹2,979.98 crore in H1 2024. Profit after tax (PAT) increased by 13.6% to ₹2,056.85 crore, as against ₹1,809.82 crore in the corresponding period last year.

Varun Beverages commissioned several new production facilities during the period, including 4 CSD lines, 1 JBD line, and 1 water line at Prayagraj (UP); 2 CSD lines and 1 JBD line at Damtal (HP); 2 CSD lines, 2 JBD lines, and 1 water line at Buxar (Bihar); and 2 CSD lines and 2 JBD lines at Mendipathar (Meghalaya).

In addition, its subsidiary, Varun Beverages Morocco SA, commenced commercial production of PepsiCo's snacks product "Cheetos" in Morocco during the quarter ended 30 June 2025. The Company also acquired 50% equity share capital of Everest Industrial Lanka (Private) Limited (EIL), a Sri Lankan company engaged in the production, manufacturing, distribution, and sale of commercial visi-coolers and related accessories.

Commenting on the performance for Q2 CY2025, Ravi Jaipuria, Chairman, Varun Beverage, said, “We delivered a resilient performance during the quarter. In-spite of unusually early onset of monsoon rains in the peak summer months in India, we could keep our realizations per case and EBITDA margins intact. Due to growth in international markets supported by strong positive currency movement in Africa territories, Company ended the quarter with a positive PAT, in-spite of 3% decline in consolidated sales volumes."

He added, "We continue to focus on growth opportunities in South Africa market. We have enhanced capacity by setting up a can line in Durban, one of our existing production facilities. We are awaiting approval from Competition Commission of South Africa for land parcel purchase adjoining to our production facility in Boksburg to further enhance capacity & backward integration. These are few starting steps in our series of initiatives."