Beverage giant Varun Beverages Ltd (VBL), the largest franchise bottler for PepsiCo outside the United States, announced a standalone net profit increase of 17% year-on-year for the quarter ending September 2025, totaling ₹577.4 crore. This marks an improvement from the profit of ₹492.3 crore recorded during the same period last year.
However, the company’s revenue from operations remained relatively stable on a year-over-year basis, reported at ₹3,063.9 crore compared to ₹3,086.8 crore in the previous year.
On a consolidated basis, EBITDA stood at ₹1,147.4 crore, showing little change, while EBITDA margins declined slightly by 53 basis points to 23.4% in Q3 CY2025, down from 24.0% in Q3 CY2024. The company’s consolidated sales volume increased by 2.4% to 273.8 million cases in the quarter under review, compared to 267.5 million cases in Q3 CY2024, despite ongoing heavy rainfall across India during the quarter.
Domestic sales volumes remained nearly flat, while international volumes rose by 9%, primarily driven by sales in South Africa. In a strategic move, the board has approved the establishment of a wholly owned subsidiary in Kenya to engage in manufacturing, distribution, and sale of beverages.
Ravi Jaipuria, Chairman of Varun Beverages, stated, “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.”
Jaipuria also highlighted the company’s efforts in diversifying its product offerings, mentioning that some African subsidiaries will test-market beer through a distribution agreement with Carlsberg Breweries A/S for its Carlsberg brand. The snacks facility in Morocco has begun full-scale operations, and progress continues towards commissioning the forthcoming plant in Zimbabwe, further diversifying the company’s portfolio beyond beverages.
Following the report, Varun Beverages’ stock gained 9% on the BSE, closing at ₹495.45 after reaching an intraday high of ₹500.80.
Published on October 29, 2025.
