Varun Beverages Q4 profit jumps 33% as volumes rise, finance costs fall 

INDIA – Varun Beverages Ltd (VBL) has reported a 33 per cent year-on-year increase in consolidated net profit to Rs 260 crore (US$31.3 million) for the quarter ended December 2025, compared with Rs 195.64 crore (US$23.6 million) recorded in the same period last year. 

The company’s total income rose 14.8 per cent year-on-year to Rs 4,433.90 crore (around US$533.9 million) in the fourth quarter of calendar year 2025, up from Rs 3,862.25 crore (US$465.0 million) a year earlier.  

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 10.2 per cent to Rs 639 crore (US$77.0 million) from Rs 580 crore (US$69.9 million). 

Varun Beverages said the profit growth was supported by lower finance costs and higher other income, including interest income on deposits and favourable currency movements in international markets. 

On the cost side, purchases of stock-in-trade declined 23 per cent to Rs 110 crore (US$13.3 million), compared with Rs 144 crore (US$17.4 million) in the same quarter last year. In contrast, the cost of materials consumed rose 12 per cent to Rs 1,922 crore (US$231.7 million) from Rs 1,705 crore (US$205.5 million) in the corresponding quarter of 2024. 

Finance costs fell sharply by 57 per cent to Rs 46.6 crore (US$5.6 million), down from Rs 109 crore (US$13.1 million) in Q4 2024. The company also reported that sales volumes increased 10.2 per cent to 237.1 million cases from 215.1 million cases a year earlier. 

Commenting on the outlook, the company said it expects demand to improve due to favourable monsoons and stated during a conference call that double-digit growth in India was “not impossible.” It also anticipates a “much better realisation” in African markets during the 2026 calendar year. 

Varun Beverages said calendar year 2025 saw steady execution despite weather-related disruptions during India’s peak summer season, with consolidated volumes growing 7.9 per cent.  

Performance improved meaningfully in the fourth quarter, with domestic volumes rising 10.5 per cent, reflecting the strength of its distribution network and brand portfolio. 

International volumes grew 10.0 per cent in the quarter, with South Africa delivering healthy volume growth, according to the company. 

In a separate regulatory filing, VBL announced a final dividend of Rs 0.50 per share (US$0.006), each with a face value of Rs 2 (US$0.02). 

In December 2025, Varun Beverages, through a subsidiary, acquired South Africa-based Twizza at an enterprise value of Rs 1,118.7 crore (US$134.7 million), payable in cash.  

The company said the acquisition is expected to be completed by June 30, 2026. 

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