Varun Beverages Delivers Strong Q1 Results: Net Profit ₹726.4 Cr, Revenue Growth 29% YoY
Business and Industry Overview:
Varun Beverages Limited is an Indian multinational company that manufactures, bottles, and distributes beverages. It is the largest bottling company of PepsiCo’s beverages in the world outside the United States. The Company manufactures, distributes, and sells a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo. The beverage industry is a very vast industry with various major players in the industry and Pepsi is one of the largest players with 33 % of the total market share. Varun Beverages Limited (VBL) accounts for about 90% of PepsiCo’s beverage sales in India. Revenue in the Beverages Market is projected to reach US$1,389.00m in 2025. The revenue in this industry is expected to show an annual growth rate (CAGR 2025-2029) of 11.90%, resulting in a projected market volume of US$2,178.00m by 2029.
Latest Stock News:
On April 30, 2025, Varun Beverages’ stock price went up by 1.56%. It closed at ₹537.25. This happened after the company shared strong results for the first quarter of 2025. The company made ₹5,680 crore in total sales. This is 29% more than the same time last year. The company also made ₹731 crore profit. This is 33.5% more than last year. The company sold 312.4 million drink cases. This is 30.1% more than before. The sales were good in India. The sales also grew in South Africa and the Democratic Republic of Congo. The company said it will give ₹0.50 per share as a dividend. The record date is May 7. The dividend will be paid from May 9. Even after good results, the stock is still 22% lower than its highest price. The highest price was ₹682.84 in July 2024. Experts are still positive. Motilal Oswal and Nuvama both said it is a good stock to buy. Motilal Oswal gave a target price of ₹665. Nuvama gave a target price of ₹659. They said the company is growing fast. They liked the high sales and good profit. They also said the company is managing its business well.
Segmental information:
- Beverages: This is the biggest part of the business. It makes and sells drinks like Pepsi, Mountain Dew, 7UP, and Tropicana juice. They also sell packaged water. VBL is the main company that bottles Pepsi products in India and other countries.
- International Operations: VBL does business in other countries like South Africa, Sri Lanka, Nepal, and the Democratic Republic of Congo. This helps the company grow and sell more products.
- Other Segments: VBL also has small businesses that are related to packaging and selling other products. These help the company make more money and grow its business.
Subsidiary information:
In India:
- Lunarmech Technologies Pvt Ltd: Makes bottle caps for drinks.
- CV Biotech Pvt Ltd: Works in the biotechnology field.
- Devyani Food Industries Ltd: Makes ice creams.
In Other Countries:
- Varun Beverages Lanka (Private) Limited: Sells PepsiCo drinks in Sri Lanka.
- The Beverage Company Proprietary Limited (Bevco): Works in South Africa to sell PepsiCo drinks. VBL invested ₹412 crore in this company in 2025 to help it grow.
- Varun Beverages (Nepal) Pvt Ltd: Sells PepsiCo drinks in Nepal.
- Varun Beverages RDC SAS: Sells PepsiCo drinks in the Democratic Republic of Congo.
- Varun Beverages Morocco: Sells PepsiCo drinks in Morocco.
- Varun Beverages Mozambique: Sells PepsiCo drinks in Mozambique.
- Varun Beverages Zambia: Sells PepsiCo drinks in Zambia.
- Varun Beverages Zimbabwe: Sells PepsiCo drinks in Zimbabwe.
- SBC Beverages Tanzania Ltd: Bought in 2024 for ₹1,304 crore to help the company grow in Tanzania.
- SBC Beverages Ghana Ltd: Bought in 2024 for ₹127 crore to help the company grow in Ghana.
Q4 Highlights:
- Net Profit: ₹726.4 crore, up 35.2% from ₹537.2 crore last year.
- Revenue: ₹5,680 crore, a 29.2% increase from ₹4,398 crore last year.
- Sales Volume: 312.4 million cases, a 30.1% increase compared to last year.
- EBITDA: ₹1,264 crore, up 27.8%.
- EBITDA Margin: Slight decrease to 22.7% from 22.9% last year.
- Revenue per Case: Increased by 3.5% due to better product mix and growth in international markets.
- Dividend: ₹0.50 per share. The record date is May 7, 2025, and payment starts on May 9, 2025.
- International Markets: Sales grew in South Africa and the Democratic Republic of Congo.
Financial Summary:
| Amount in ₹ Crore | Q4 FY24 | Q4 FY25 | FY24 | FY25 |
| Revenue | 35,509 | 40,455 | 143,727 | 152,968 |
| Expenses | 26,741 | 28,989 | 108,415 | 110,625 |
| EBITDA | 8,768 | 11,466 | 35,312 | 42,343 |
| OPM | 25% | 28% | 25% | 28% |
| Other Income | 385 | 762 | 5,239 | 5,544 |
| Net Profit | 2,275.00 | 4,961 | 7,539 | 20,535 |
| NPM | 6.41 | 12.26 | 5.25 | 13.42 |
| EPS | 3.68 | 8.91 | 11.4 | 38.33 |