Varun Beverages Q4 results: Profit up 36% to Rs 252 crore; stock slips 9% from day’s high

Shares of Varun Beverages (VBL), one of PepsiCo’s largest franchisees globally, declined on Tuesday after the company reported its earnings for the quarter ended December 31, 2025.

At 1:29 pm, shares of Varun Beverages were down 4.54 per cent to Rs 445.30, marking a 9.49 per cent fall from its day’s high of Rs 492 apiece.

The beverage major reported a consolidated net profit of Rs 251.78 crore for the fourth quarter, a growth of 36 per cent compared to Rs 185.14 crore in the same period last year. Revenue from operations for the quarter rose 13.5 per cent to Rs 4,334.7 crore, up from Rs 3,817.6 crore in the corresponding quarter last year.

EBITDA increased by 10.2 per cent to Rs 639 crore against Rs 580 crore in the year-ago period. But the EBITDA margin contracted to 14.7 per cent from 15.2 per cent reported in the corresponding quarter of the previous year.

Ravi Jaipuria, Chairman of Varun Beverages, said, “CY2025 was marked by steady execution, despite weather-related disruptions in India during the peak summer season.
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Jaipuria said that while volume growth in India was impacted during parts of the year due to unprecedented heavy rainfall, the performance improved meaningfully in the fourth quarter. 

Varun Beverages commissioned four new greenfield production facilities in India during the year—located in Prayagraj (Uttar Pradesh), Damtal (Himachal Pradesh), Buxar (Bihar), and Mendipathar (Meghalaya). 

"The greenfield plants and backward integration facilities commissioned during the year are progressively stabilising and are expected to support higher volumes and operating leverage in the upcoming season," Jaipuria added.

The company also announced the proposed acquisition of Twizza in South Africa, subject to regulatory approvals, which is expected to bolster its manufacturing footprint in Africa’s largest soft drinks market. Additionally, the company has entered into an exclusive distribution agreement with Carlsberg Breweries A/S to test market beer in certain African territories, as per the exchange filing.

The company board has recommended a final dividend of Rs 0.50 per equity share of the face value of Rs 2 each, subject to shareholder approval.