PepsiCo bottler Varun Beverages posts 18.6% rise in profit to Rs 745 cr in Q3 CY2025

Varun Beverages Ltd on Wednesday announced its third quarter result for the calendar year 2025. The company, primarily responsible for bottling and distributing PepsiCo's drinks in the country, reported an 18.6% rise in consolidated profit in Q3 while the revenue from operations saw a surge of 2.3% year-on-year.

According to the stock exchange filing of Varun Beverages, the net profit increased to Rs 745 crore during the September quarter in CY2025 compared to Rs 628.8 crore in the same period in CY2024.

However, on quarterly basis, the profit saw a significant decline by 43.7% as in June quarter, its profit stood at Rs 1,325.4 crore.

VBL posted revenue of operation at Rs 5,047.7 crore in Q3 CY2025 as against Rs 4,932 crore in Q3 CY2024. While total income in Q3 (July to September period) increased to Rs 5,195.7 crore.

The consolidated sales volumes rose by 2.4%, supported by healthy traction in international markets, said Chairman Ravi Jaipuria.

However, domestic volumes remained subdued due to prolonged rainfall across India. Jaipuria exuded confidence in the 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," the CEO added.

He said ongoing investments in capacity expansion, distribution reach, and cold-chain infrastructure will bolster on-ground execution, ensuring demand recovery in the upcoming season.

In further development, VBL announced that it is incorporating a wholly-owned subsidiary in Kenya under Varun Beverages Limited to carry on the business of manufacturing, distribution and selling of beverages.

"In line with our growth strategy, we are incorporating a wholly-owned subsidiary in Kenya under Varun Beverages Limited to carry on the business of manufacturing, distribution and selling of beverages," Jaipuria said.

VBL's African subsidiaries will also be testing market beer in their territories through an exclusive Distribution Agreement with Carlsberg Breweries, he added.