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Varun Beverages Q2 results: Profit up 5% to ₹1,325.4 cr, revenue down 2.32%
The company, which follows the calendar year as its financial year, had posted a net profit of Rs 1,261.8 crore in the April-June quarter a year ago, according to a regulatory filing from Varun Beverages Ltd (VBL).
However, its revenue from operations declined 2.32 per cent to Rs 7,163.02 crore in the June quarter of FY26. It stood at Rs 7,333.67 crore in the corresponding quarter last fiscal.
During June, VBL reported a 3 per cent drop in consolidated sales volume at 389.7 million cases in Q2 CY2025 from 401.6 million cases in Q2 CY2024, primarily due to abnormally high unseasonal rainfall throughout the quarter in India," the bottler said in its earnings statement.
Its India volumes declined by 7.1 per cent, while international volumes grew by 15.1 per cent, partially offsetting the overall decline, it said.
In the June quarter, "net realisation per case at the consolidated level improved by 0.5 per cent, driven by 6.6 per cent improvement in the International markets," said VBL. VBL's profit after tax (PAT) rose 5 per cent, primarily driven by operational efficiencies and lower finance costs, the company said. Total expenses declined 3.62 per cent to Rs 5,506.94 crore in the June quarter.
VBL's total income in the June quarter was at Rs 7,240.17 crore, down 1.86 per cent.
Commenting on the results, Chairman Ravi Jaipuria said, "In spite of unusually early onset of monsoon rains in the peak summer months in India, we could keep our realisations per case and EBITDA margins intact. Due to growth in international markets supported by strong positive currency movement in African territories, the company ended the quarter with a positive PAT, in spite of 3 per cent decline in consolidated sales volumes." Meanwhile, in a separate filing, VBL said its board has approved a second interim dividend of Rs 0.50 per share, representing 25 per cent of the face value of Rs 2 each.
In the June quarter, VBL commissioned new production facilities at Prayagraj (UP), Damtal (HP), Buxar (Bihar) and Mendipathar (Meghalaya).
Moreover, during the current quarter, Varun Beverages Morocco SA (a subsidiary of the company) has started commercial production of PepsiCo's snack product "Cheetos" in Morocco.
VBL has franchisees for various PepsiCo products across 27 states and 7 union territories in India, which accounts for 90 per cent of the beverage sales volume of PepsiCo India.
Besides, it has also franchises for the territories of Nepal, Sri Lanka, Morocco, Zambia and Zimbabwe. India is the largest market and contributes around 80 per cent of revenues from operations.
Shares of Varun Beverages Ltd on Wednesday were trading at Rs 522.30 on BSE, up 1.97 per cent from the previous close.
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