Varun Beverages Q4 CY2025 profit up 33%, revenue 14%

Why Varun Beverages’ latest print matters

Varun Beverages Ltd (VBL), a key PepsiCo franchise bottler, reported its earnings for the quarter ended December 31, 2025, showing higher profit and double-digit revenue growth. The results also arrived alongside commentary on weather-related disruptions in India and a recovery in volumes during the fourth quarter. Despite the improved bottom line, the stock fell on the day, reflecting investor focus on margins and near-term costs.

The company follows the calendar year as its financial year, so the December quarter corresponds to Q4 CY2025. The FMCG and beverages space is closely watched for demand signals, seasonality, and how distribution and capacity expansion translate into volumes.

Stock reaction after Q4 CY2025 earnings

Shares of Varun Beverages declined after the quarterly update. One market report said the stock was down 4.54% at Rs 445.30 at 1:29 pm, and about 9.49% lower than the day’s high of Rs 492.

In the same news flow, VBL was reported to have settled at Rs 451.30 on the BSE, down 3.26% from the previous close. The move came even as the company reported higher consolidated profit and revenue for the quarter.

Q4 CY2025: net profit rises, revenue grows double digits

For the quarter ended December 2025, PTI reported that Varun Beverages posted a 32.9% increase in consolidated net profit to Rs 260 crore, compared with Rs 195.64 crore a year ago. Another market report put consolidated net profit for the quarter at Rs 251.78 crore, up 36% from Rs 185.14 crore in the same period last year.

Revenue from operations for Q4 CY2025 increased 13.54% year-on-year to Rs 4,334.79 crore, versus Rs 3,817.61 crore in Q4 CY2024. The company also reported EBITDA of Rs 639.26 crore for the quarter, up 10.2% from Rs 579.97 crore a year earlier.

Margins and expenses: EBITDA margin contracts

While EBITDA rose year-on-year, one report noted that the EBITDA margin contracted to 14.7% from 15.2% in the corresponding quarter of the previous year. PTI also reported that total expenses increased 14.8% to Rs 4,433.90 crore in the December quarter.

This combination of revenue growth, higher operating profit, and softer margins helps explain why the market reaction was not purely positive on the day.

Volumes: India and international markets both improved in Q4

VBL attributed the quarter’s growth to higher volumes. Consolidated sales volume in Q4 CY2025 grew 10.2% to 237.1 million cases from 215.1 million cases in Q4 CY2024. Within that, sales volumes in India grew 10.5% and international markets grew 10%.

In its broader operational update, the company pointed to network expansion and capacity enhancements as drivers that supported the Q4 recovery. The company also reported that net realisation per case improved 3.4% in Q4 to Rs 177.3.

Full-year CY2025: revenue, PAT and volume trends

For CY2025, the company reported consolidated volumes growth of 7.9% and revenue growth of 8.4%, with EBITDA up 7.2%. Profit after tax (PAT) increased 16.2% to Rs 3,062.04 crore (INR 30,620.4 million).

Revenue from operations, adjusted for excise and GST, increased to Rs 22,225.58 crore (INR 222,255.84 million) in FY25, compared with Rs 20,481.33 crore (INR 204,813.28 million) in FY24. Consolidated sales volumes for the year were reported at 1,213.1 million cases.

The company said PAT growth was supported by volume growth, lower finance cost and higher other income, including interest on deposits in India and favourable currency movement in international territories.

Management commentary: weather disruption, then Q4 recovery

Chairman Ravi Jaipuria said CY2025 was marked by steady execution despite weather-related disruptions in India during the peak summer season. He added that volume growth in India was impacted during parts of the year due to unprecedented heavy rainfall, but performance improved meaningfully in Q4.

On international operations, the company said Africa supported the scale-up, and referenced South Africa’s volume growth and initiatives such as general trade expansion, addition of visi-coolers, and progress on backward integration and capacity enhancement.

Dividend recommendation for CY2025

VBL said its board recommended a final dividend of Rs 0.50 per equity share of face value Rs 2 each, subject to shareholder approval. The dividend was disclosed alongside the Q4 and full-year updates.

Snapshot table: key reported numbers and dates

Market impact: what investors are watching

The day’s price decline, despite higher profit, highlights that investors are tracking the quality of growth. The reported EBITDA margin contraction in Q4 suggests costs rose faster than operating profit in the quarter even as volumes improved.

Separately, the data provided also lists VBL at Rs 490.45 with market capitalisation of Rs 165,874 crore, EPS of 0.74 and revenue of Rs 4,204 (with 13.98% year-on-year revenue growth) as on April 24, 2026 (16:01). It also lists net profit of Rs 262 and net profit growth of 33.74% in the same snapshot table.

Conclusion

Varun Beverages’ Q4 CY2025 results showed double-digit revenue growth and higher profit, supported by a rebound in India volumes and continued international expansion, even as margins softened. The company has also recommended a final dividend of Rs 0.50 per share, subject to shareholder approval. Separately listed market data points to an upcoming earnings date of April 27, 2026, which will be the next scheduled update for investors tracking near-term performance.