Varun Beverages Q4 FY25 Results: Net Profit Surges Amid Growth

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Varun Beverages Q4 FY25: Net Profit Soars 35% to ₹726 Cr

By S Jha

New Delhi, April 30, 2025 — Varun Beverages Ltd., a leading PepsiCo franchisee, announced its Q4 FY25 financial results, reporting a 35.2% year-on-year surge in consolidated net profit to ₹726.4 crore, up from ₹537.2 crore in Q4 FY24.

The robust performance, driven by strong volume growth and international expansion, drew positive reactions from experts. They highlighted the company’s resilience despite seasonal challenges.

According to an exchange filing cited by @CNBCTV18Live, “Varun Beverages reports Q4 Results: Net profit up 35.2% at ₹726.4 cr vs ₹537.2 cr (YoY) Revenue up 29% at ₹5,567 cr vs ₹4,317.4 cr (YoY) EBITDA up 27.8% at ₹1,264 cr vs ₹989 cr (YoY) Margin At 22.70% vs 22.90% (YoY).”

@REDBOXINDIA echoed this, noting: “VARUN BEVERAGES: Q4 EBITDA 12.6B RUPEES VS 9.88B (YOY),” emphasizing the significant operational earnings growth.

Analyst Rohit, anticipated the results, wondering “will Varun Beverages deliver a refreshing Q4 or leave investors thirsty? His thread highlighted expectations of strong domestic and international volume growth, which the results confirmed.

Market commentator @indianmarketrac expressed bullish sentiment ahead of the announcement of the result, saying “Analysts see clear skies ahead for Varun Beverages, with strong volume-led growth on the cards, powered by smart acquisitions and a sizzling summer demand. Is this the perfect recipe for a bullish run?

Experts noted the company’s strategic expansions, including new facilities in the Democratic Republic of Congo and South Africa. Rahul Singh, in a p;ost on X, provided a balanced view last week, saying: “Impressive growth for Varun Beverages with a 39.8% revenue surge, but the heavy PepsiCo reliance and regulatory risks could pose challenges —sustainability efforts and Africa expansion might be key to watch.”?

The results reflect Varun Beverages’ strong operational execution, with revenue from operations rising 29% to ₹5,567 crore from ₹4,317.4 crore in Q4 FY24. EBITDA grew 27.8% to ₹1,264 crore, though margins slightly dipped to 22.7% from 22.9% due to higher raw material costs, such as sugar and packaging materials.

Consolidated sales volume increased significantly, driven by an 11.4% rise in India and higher growth in new African markets, as noted in a February 2025 filing.

The company’s expansion into South Africa, Namibia, Botswana, Mozambique, and the Democratic Republic of Congo, along with exclusive PepsiCo snack franchising in Zimbabwe and Zambia, bolstered its international portfolio.

Chairman Ravi Jaipuria, quoted in a February 2025 statement, emphasized sustainable growth through “market penetration, capacity expansion, and investments in technology and sustainability”.

Despite the strong results, experts like Singh noted potential vulnerabilities, including reliance on PepsiCo and regulatory risks in new markets. Seasonal weakness in Q4, typically a slower quarter for beverages, was offset by strategic acquisitions and distribution enhancements, such as increased visi-cooler placements in rural areas.

Brokerages like Motilal Oswal, cited in February, remain bullish, projecting a 12%/11%/17% CAGR in revenue/EBITDA/PAT over CY24-26, driven by stable domestic growth and African market penetration.

Varun Beverages declared an interim dividend of ₹0.50 per share, signaling confidence in its financial health. The stock, trading at ₹534.30 on Wednesday, has seen volatility but remains a favourite among analysts for its growth potential.

The slight margin contraction raises questions about cost management amid rising input prices. The heavy dependence on PepsiCo, as Singh noted, could expose Varun Beverages to brand-specific risks, especially with competitors like Campa gaining traction.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company.

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