Varun Beverages Ltd.Strong Recovery Momentum with Q4 Surge

Varun Beverages delivered resilient performance in CY2025 despite unprecedented rainfall disruptions during peak summer season.

Consolidated revenue grew 8.4% to ₹21,685 crore with volumes advancing 7.9% to 1,213.1 million cases, while profit after tax surged 16.2% to ₹3,062 crore, demonstrating strong business model resilience. EBITDA margins remained robust at 23.3%, above management's 22-23% guidance range. The company exhibited sharp Q4 recovery momentum with India volumes accelerating to 10.5% growth and international volumes rising 10%, while Q4 PAT jumped 32.9%.

Management maintained confident double-digit India volume growth guidance for CY2026, citing normalized weather conditions and 50% available capacity headroom from recent expansions. Strategic initiatives include ₹4,500 crore capex during the year establishing four new greenfield plants in India, plus the pending Twizza acquisition in South Africa that will expand capacity by over 80% and strengthen route-to-market capabilities.

The India business remains virtually debt-free with ₹1,225 crore net cash. Product innovation pipeline includes Nimbooz Jeera launch and energy drink expansion planned for 2026.