Varun Beverages Q3: Net profit rises 20%, EBITDA flat at ₹1,148 crore; shares rise over 8%

The profit increase was driven by lower finance costs and higher other income, which includes interest on deposits in India and favourable currency movement in the international territories, the firm said.

The company's consolidated revenue from operations increased by 2.35% YoY to ₹5,048 crore during the quarter ended September 2025, compared to ₹4,932 crore in the corresponding period last year.

Varun Beverages reported an operating profit, or earnings before interest, taxes, depreciation, and amortisation (EBITDA), of ₹1,148 crore for the quarter under review, marginally down by 0.37% YoY from ₹1,152 crore in the same quarter last year. The company’s margin also contracted to 22.7% as against 23.3% YoY.

“We have delivered a steady performance during the quarter, with consolidated sales volumes rising by 2.4%, supported by healthy traction in international markets. While domestic volumes remained subdued due to prolonged rainfall across India, international operations grew by 9%,” said Chairman Ravi Jaipuria.

The company’s consolidated sales volume grew by 2.4% to 27.3 crore cases in Q3 CY2025 from 26.75 crore cases in Q3 CY2024, despite heavy rainfall continuing across India throughout the quarter.

The Pepsi maker said India volumes were almost flat, and international volumes grew by 9%, led by a strong performance in South Africa. Its net realisation per case stood at ₹178.8 per case in Q3 CY2025 as compared to ₹179.6 per case in Q3 CY2024 due to a higher mix of water in international markets.

“Further, in line with our growth strategy, we are incorporating a wholly-owned subsidiary in Kenya under Varun Beverages Limited to carry on the business of manufacturing, distribution and selling of beverages. We are also diversifying our product offerings, and certain African subsidiaries of VBL shall test market beer in their territories through an exclusive Distribution Agreement with Carlsberg Breweries A/S for their Carlsberg brand,” added Jaipuria.

In Q3 CY2025, Varun Beverages’ carbonated soft drinks (CSD) constituted 74%, non-carbonated beverages (NCB) 4%, and packaged drinking water 22%.

Gross margins improved by 119 basis points to 56.7% in Q3 CY2025, driven by a higher share of packaged water sales in international markets. The company added that, overseas, expenses are gradually shifting from raw material purchases to employee costs, power and fuel, and other manufacturing overheads due to enhanced in-house backward integration initiatives.

Varun Beverages reported a 7.1% year-on-year increase in revenue from operations (net of excise and GST) to ₹17,481 crore in the first nine months of CY25, compared with ₹16,319 crore in the corresponding period of CY2024.

During the nine-month period, low-sugar and no-added-sugar products accounted for around 56% of the company’s consolidated sales volumes and about 45% in India. EBITDA rose 6.8% to ₹4,410 crore from ₹4,131 crore, while profit after tax (PAT) grew 14.9% to ₹2,802 crore from ₹2,439 crore in the same period last year.

Jaipuria further said, “While the extended monsoon season impacted consumption trends in India, we remain confident in the significant long-term potential of the domestic beverage industry. With low per capita consumption and rising penetration in semi-urban and rural markets, the opportunity for growth continues to be immense. Our ongoing investments in capacity expansion, distribution reach, and cold-chain infrastructure are further strengthening on-ground execution, ensuring we are well-prepared to capture demand recovery in the upcoming season and deliver sustainable growth for all stakeholders.”

Following the earnings, shares of Varun Beverages were trading at ₹492.20 apiece on NSE, gaining 8.38%.