Varun Beverages posts double-digit volume growth; Q4 profit rises 33%

Varun Beverages Ltd (VBL) on Tuesday reported a 33.3% year-on-year rise in consolidated profit for the fourth quarter ended December 31, 2025, driven by higher volumes across India and international markets, particularly Africa.

The PepsiCo bottler posted a profit of Rs 260 crore in Q4 CY2025, compared with Rs 195 crore in the same period last year. Revenue from operations increased 13.5% year-on-year to Rs 4,334 crore, up from Rs 3,817 crore in Q4 CY2024.

During the quarter, consolidated sales volumes rose 10.2% to 23.7 crore cases, compared with 21.5 crore cases a year earlier. Sales volumes in India grew by 10.5%, while international markets recorded 10% growth.

For the full calendar year 2025, overall revenue from operations (net of excise/GST) rose 8.4% year-on-year to Rs 21,685 crore, compared with Rs 20,007.6 crore in CY2024. The company’s consolidated sales volume grew 7.9% to 121.3 million cases during the year.

EBITDA increased 7.2% to Rs 5,049 crore in CY2025, from Rs 4,711 crore in the previous year, while profit after tax rose 16.2% to Rs 3,062 crore, compared with Rs 2,634 crore in CY2024.

Commenting on the performance, Ravi Jaipuria, Chairman, Varun Beverages Ltd, said the company’s international operations continued to scale, led by Africa. He noted that international volumes grew 10% in Q4, supported by expansion in general trade reach, the addition of visi-coolers, and progress on backward integration and capacity expansion, which strengthened supply chain efficiency and cost competitiveness.

Jaipuria also highlighted the company’s proposed acquisition of Twizza in South Africa, subject to regulatory and other approvals, as part of its international growth strategy.

“Our balance sheet remains strong, supported by healthy cash flows, providing flexibility to support organic expansion, invest in cold-chain and distribution infrastructure, and pursue value-accretive strategic opportunities,” Jaipuria said, adding that the company remains confident about long-term growth prospects across India and international markets.

Separately, Varun Beverages announced plans to invest up to 30% equity in FPEL HR2 Energy Private Limited to source solar power for captive consumption. The company will invest up to Rs 1.58 crore, in one or more tranches, in the special purpose vehicle incorporated on August 1, 2025.

VBL intends to procure solar power generated by FPEL HR2 for its facilities in Nuh and Panipat, as well as any future units in Haryana, as part of its sustainability and energy efficiency initiatives.