Varun Beverages shares rise 3% after Q1 earnings; results breakdown here

Varun Beverages rose 3 per cent after it reported a 5 per cent increase in its net profit during the current financial year

Shares of Varun Beverages rose nearly 3 per cent on Tuesday after the company reported a 5 per cent increase in its net profit during the current financial year (Q1FY26), despite a decline in its top line. 

 

The beverages company's stock rose as much as 2.8 per cent during the day to ₹500.8 per share, the highest level since May 20 this year. This compares to a 0.11 per cent advance in Nifty 50 as of 12:55 PM. 

 

Shares of the company rose for the second straight day and currently trade at 2,4 times the average 30-day trading volume, according to Bloomberg. The counter has risen 21 per cent this year, compared to a 4.5 per cent advance in the benchmark Nifty 50. Varun Beverages has a total market capitalisation of ₹1.68 trillion.   Track Live Stock Market Updates Here

Varun Beverages Q1 results 

The company reported a 5.1 per cent year-on-year (Y-o-Y) rise in consolidated net profit to ₹1,317 crore for the quarter ended June 2025, up from ₹1,253 crore in the same period last year.

 

The beverage maker saw its revenue decline 2.5 per cent Y-o-Y to ₹7,017 crore, compared to ₹7,197 crore a year ago. However, operating performance remained steady, with Ebitda (earnings before interest, tax, depreciation and amortisation) inching up 0.4 per cent to ₹1,999 crore, from ₹1,991 crore.

 

Ebitda margin improved to 28.5 per cent, against 27.7 per cent last year, aided by cost efficiencies and improved product mix.

 

The company ended the quarter with a positive profit, despite a decline in consolidated sales volumes, driven by growth in international markets, which was supported by strong positive currency movement in African territories, Ravi Jaipuria, chairman at Varun Beverages, said. 

 

"Although unseasonal rains have impacted performance during the quarter, we have successfully navigated such challenges in the past and emerged stronger. We continue to strengthen our on-ground execution by adding more visi-coolers and ensuring wider product availability across retail touchpoints," Jaipuria said.

 

The company's board also approved a second interim dividend of 25 per cent of face value, i.e., ₹0.50 per share, according to the statement. This would result in a total cash outflow of approximately ₹169.1 crore. 

Varun Beverages acquires 50% stake in Everest Industrial Lanka 

The company also said that it acquired a 50 per cent equity stake in Everest Industrial Lanka Pvt. Ltd, a Sri Lankan company, engaged in the business of production, manufacturing, distribution and selling of commercial visi-coolers and related accessories.