Varun Beverages Q2 revenue rises 2.5% despite volume dip  

INDIA – Varun Beverages Ltd., a leading bottling partner of PepsiCo, has reported a 2.5% year-on-year increase in consolidated revenue to ₹7,017.4 crore (US$808.3M) for the second quarter of calendar year 2025.  

This growth comes despite a 3% decline in overall sales volume, which fell to 389.7 million cases from 401.6 million cases in Q2 CY2024.  

The drop in sales volume was attributed primarily to unseasonal rainfall across India during the peak summer months.  

Domestic sales volume declined by 7.1%, whereas international operations recorded a strong performance, growing by 15.1%. Notably, South Africa, one of the key international markets, posted a 16.1% increase in volume.  

Net profit rose 5% to ₹1,317 crore (US$151.7M) from ₹1,253 crore (US$144.3M) in the same quarter last year. The growth in profit was supported by operational efficiencies and a reduction in finance costs. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) remained flat at ₹1,999.6 crore (US$230.3M).  

Despite the impact of increased fixed overheads from four newly commissioned greenfield plants in India, EBITDA margin improved by 80 basis points to 28.5% from 27.7%. These new plants are yet to contribute to incremental volumes.  

Chairman Ravi Jaipuria noted that the company maintained per-case realization and EBITDA margins despite early monsoon rains in India.  

He added that growth in international markets, supported by favorable currency movements in African territories, helped offset the volume decline and deliver positive profit after tax (PAT).  

The board of directors has approved a second interim dividend of 25% of face value, amounting to ₹0.50 per share. This will result in a total cash outflow of approximately ₹169.1 crore (US$19.5M).  

Additionally, Varun Beverages acquired a 50% equity stake in Everest Industrial Lanka Pvt. Ltd., a Sri Lanka-based company engaged in the manufacturing and distribution of visi-coolers and related accessories.  

The company emphasized its preparedness for future growth, citing expanded capacities, a growing product range, and a strengthened distribution network to drive long-term stakeholder value.

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