Varun Beverage Q4 results: Profit, Ebitda may rise manifold dividend announcement eyed

Pepsico bottler Varun Beverages (VBL) is set to consider and approve the unaudited financial results for the quarter ended on March 31, 2025 on Wednesday, April 30, 2025. The homegrown beverages player also considers and approves the dividend for the eligible shareholders of the company, if any.

Analysts tracking the stock are expecting Varun Beverages to report a healthy performance on both year-on-year (YoY) and quarter-on-quarter (QoQ) basis. They are penciling a manifold rise in its net profit and Ebitda with a healthy rise in volumes and revenues for the bottler, along with a healthy rise of around 600 basis points (bps) in margins.

Nuvama Institutional Equities is expecting VBL to clock a revenue at Rs 5,655.7 crore in March 2025 quarter, up 31 per cent YoY and 53 per cent QoQ.  Ebitda is seen at Rs 1,283.8 crore, up 30 per cent QoQ and 121 per cent YoY. Core net profit is seen at Rs 686.6 crore, up 28 per cent 28 per cent QoQ and 271 per cent YoY.

"We estimate consolidated volumes shall soar 30 per cent YoY. In the base quarter, the BevCo effect was there for only four days and DRC was not yet acquired. We forecast consolidated ebitda shall surge 29.8 per cent YoY. We estimate 12–13 per cent YoY India volume growth while revenue shall grow 13 per cent YoY, with stable gross and ebitda margins for the India business," it said.

Elara Capital is pencilling in VBL's revenue to come in at Rs 5,519.1 crore, up 27.8 per cent YoY and 49.6 per cent QoQ. Ebitda is seen Rs 1,259.1 crore, up 27.3 per cent YoY and 117.1 per cent QoQ. Net profit is likely to come in at Rs 745.7 crore, up 38.8 per cent QoQ and 302.8 per cent YoY.

Shares of Varun Beverages rose more than a per cent to Rs 535.05 on Wednesday, with a total market capitalization of more than Rs 1.80 lakh crore. The stock had settled at Rs 528.95 on Tuesday. However, it has dropped nearly 22 per cent from its 52-week high at Rs 682.84, hit in July 2024.

Kotak Institutional Equities is modeling VBL's sales at Rs 5,613.1 crore, up 30 per cent YoY and 52.2 per cent QoQ. Ebitda is seen at Rs 1,266.7 crore, up 28.1 per cent YoY and 118.4 per cent QoQ with margins expanding sharply 684 bps sequentially to 22.6 per cent. Net profit may zoom manifold QoQ to Rs 747.7 crore, rising 39.1 per cent YoY.

"We estimate a 29.8 per cent YoY growth in volumes. We model a 125 bps YoY decline in gross margins to 55 per cent. We expect the Ebitda margin at 22.6 per cent. We expect standalone ebitda margin to be up 40 bps YoY. Our estimates imply reported ebitda growth of 28 per cent," Kotak said, which has an 'add' rating on the stock with a fair value of Rs 585.

However, JM Financial is expecting a manifold rise in net sales of VBL at Rs 20,007.7 crore, up 363.4 per cent YoY and 442.4 per cent QoQ. Ebitda is seen at Rs 13,615.8 crore, up 1,277.1 per cent YoY and 2,247.7 per cent QoQ. VBL is among the top picks of JM Financial from the sector.