Varun Beverages Q2 Earnings: PAT Grows 5%, Revenue Falls Slightly; Shares Jump 3%, Dividend Declared

Varun Beverages Limited, one of the largest franchisees of PepsiCo worldwide, released its Q2 CY2025 results, where the company reported a 5% year-on-year (YoY) rise in profit for the quarter ended June 30, 2025. This comes despite a 3% dip in consolidated sales volumes due to unseasonal rainfall impacting peak summer demand in India.

Revenue Dips on Volume Decline in India

VBL's consolidated revenue from operations stood at Rs. 7,017.4 crore in Q2 CY2025, down 2.5% YoY from Rs. 7,196.9 crore in Q2 CY2024. The decline was mainly because of a 7.1% fall in domestic volumes, while international markets grew by 15.1%, led by a strong 16.1% surge in South Africa.

Total sales volume for the quarter was 389.7 million cases, compared to 401.6 million cases a year ago. However, net realisation per case improved by 0.5%, supported by higher realisations in international markets (up 6.6%).

Profit and Margins

Despite the revenue dip, Varun Beverages posted a 5% increase in net profit, or profit after tax, reaching Rs. 1,325.5 crore from Rs. 1,261.8 crore in the same quarter last year. EBITDA grew marginally by 0.4% to Rs. 1,998.8 crore, while EBITDA margins expanded by 82 basis points to 28.5%, thanks to operational efficiency and stable gross margins at 54.5%.
Chairman Ravi Jaipuria, Chairman of Varun Beverages Limited, noted, "We delivered a resilient performance in spite of weather disruptions. Growth in international markets and currency gains helped offset domestic weakness."

H1 CY2025 Performance

In the first half of calendar year 2025 (H1 CY2025), Varun Beverages reported a 9.3% YoY increase in revenue, reaching Rs. 12,584.3 crore. EBITDA rose by 9.5% YoY to Rs. 3,262.7 crore, while profit after tax grew by a robust 13.6% to Rs. 2,056.8 crore. The company also noted that around 55% of VBL's consolidated sales volumes during H1 came from low- or no-added-sugar beverages because of evolving global health-conscious consumer trends.

Varun Beverages Share Price

Following the announcement of its Q2 results, Varun Beverages' share price surged 3.04% on July 29, trading at Rs. 501.55 at the time of writing. The stock had been trading in a narrow range over the past few sessions, but the positive earnings report brought back the momentum. So far in July, the stock has gained 9.76%. However, on a year-on-year basis, Varun Beverages shares are still down by approximately 25%.

Technical Outlook for Varun Beverages Stock

"On the daily chart, the stock is trading comfortably above its 50-day moving average, indicating a sustained positive trend in the counter. In addition, the stock has recently given a breakout from its range-bound movement, signalling the potential for continued upward momentum. On the shorter time frame, a bullish Marubozu candlestick has formed, which reflects strong intraday buying interest and further supports the bullish view. The daily RSI is currently placed at 63.80, accompanied by a positive crossover, suggesting renewed strength and positive breadth in the stock. Given this technical setup, we expect the stock to move towards the 523-560 zone in the near term, with a strict stop loss placed at 470." Said Kkunal V Parar, VP of Technical Research and Algo at Choice Broking

Varun Beverages Dividend Announcement

Along with the financial results, the board announced and approved a second interim dividend of Rs. 0.50 per share (25% of face value), involving a total cash outflow of Rs. 169.1 crore. The record date for the dividend has been set for August 2nd.

"Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, August 2, 2025, was fixed as the "Record Date" for the purpose of determining the entitlement of equity shareholders for receipt of the 2nd interim dividend. The interim dividend will be paid on and from August 5, 2025, to those shareholders whose names appear in the Register of Members of the Company or in the list of beneficial owners maintained by the Depositories as of August 2, 2025." the exchange filing read.

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