Gurgaon: Varun Beverages Limited (BSE: 540180, NSE: VBL), a leading PepsiCo franchisee and key player in the beverage industry, announced its financial results for the third quarter and nine months ended September 30, 2025, showcasing resilient performance amid challenging weather conditions and evolving market dynamics.
Q3 CY2025 Performance Highlights:
Revenue from operations (net of excise/GST) rose by 1.9% year-on-year to ₹48,966.5 million, up from ₹48,046.8 million in Q3 CY2024. Consolidated sales volume grew by 2.4% to 273.8 million cases, despite heavy rainfall across India. While domestic volumes remained flat, international volumes surged by 9.0%, driven by robust growth in South Africa.
Net realization per case declined slightly to ₹178.8 from ₹179.6 due to a higher mix of water in international markets. The product mix for Q3 CY2025 comprised 74% carbonated soft drinks (CSD), 4% non-carbonated beverages (NCB), and 22% packaged drinking water.
EBITDA stood at ₹11,473.8 million, marking a marginal decline of 0.3% from ₹11,511.2 million in Q3 CY2024. Gross margins improved by 119 basis points to 56.7%, attributed to increased water mix and backward integration initiatives in international markets. However, EBITDA margins dipped by 53 basis points to 23.4% due to a shift in cost structure from raw materials to employee, power, and manufacturing overheads.
Profit After Tax (PAT) jumped 18.5% year-on-year to ₹7,451.9 million, driven by reduced finance costs and higher other income, including interest on deposits in India and favorable currency movements in overseas territories.
9M CY2025 Performance Highlights:
For the nine-month period, revenue from operations grew 7.1% year-on-year to ₹174,809.6 million, compared to ₹163,188.6 million in 9M CY2024. The mix of low sugar and no added sugar products accounted for approximately 56% of consolidated sales volumes and 45% in India.
EBITDA increased by 6.8% to ₹44,101.1 million, while PAT rose by 14.9% to ₹28,020.4 million, reflecting strong operational efficiency and financial discipline.
Varun Beverages continues to demonstrate resilience and adaptability, maintaining growth momentum across international markets and expanding its health-conscious product portfolio. The company remains focused on driving sustainable profitability and enhancing shareholder value.
