PepsiCo bottler Varun Beverages enters the alcoholic drinks space via a Carlsberg partnership in Africa, even as extended monsoons keep India volumes flat in Q3CY25
Varun Beverages stock was trading at ₹496.5, up 9.3 per cent compared to the previous session's close of ₹454.15 on the NSE
Q2FY26 company results: Firms including LIC Housing Finance, Ixigo, United Breweries, NTPC Energy, HPCL, and NMDC are also to release their July-September quarter earnings reports today
Leading the list is GNG Electronics (Target: ₹482 | Upside: 52%), named by Nirmal Bang, which expects robust growth as the company benefits from the govt's 'Make in India' thrust on electronics mfg.
Even as it invests in new greenfield plants and broadens its distribution network to capture demand, Varun Beverages is maintaining profitability through operational discipline and cost efficiency
Net profit of the beverage major was up 5 per cent year-on-year (Y-o-Y) though sales slipped 2 per cent and operating profit was flat
Most analysts have maintained their ratings on Varun Beverages' stock, while slightly increasing their share price target post Q2-2025 results. Check the latest targets and upside potential
Varun Beverages Ltd, PepsiCo's largest franchise bottler, on Tuesday reported a 5.04 per cent increase in its consolidated net profit to Rs 1,325.4 crore for the second quarter that ended June 2025, helped by operational efficiencies and lower finance cost, though volume was impacted in peak summer season due to unseasonal rains. The company, which follows the calendar year as its financial year, had posted a net profit of Rs 1,261.8 crore in the April-June quarter a year ago, according to a regulatory filing from Varun Beverages Ltd (VBL). However, its revenue from operations declined 2.32 per cent to Rs 7,163.02 crore in the June quarter of FY26. It stood at Rs 7,333.67 crore in the corresponding quarter last fiscal. During June, VBL reported a 3 per cent drop in consolidated sales volume at 389.7 million cases in Q2 CY2025 from 401.6 million cases in Q2 CY2024, primarily due to abnormally high unseasonal rainfall throughout the quarter in India," the bottler said in its earnings
Domestic volumes declined 7 per cent for the PepsiCo bottler. Revenues also fell 2.3 per cent. However, the firm tightened its grip on costs
Varun Beverages rose 3 per cent after it reported a 5 per cent increase in its net profit during the current financial year
Q1 FY26 company results today: ASK Automotive, Bank of India, GHCL Textiles, Lloyds Engineering Works, and Zee Media will release their April-June quarter earnings reports on July 29
Looking ahead, Varun Beverages sees immense headroom for growth in India, supported by rising per capita incomes, accelerating urbanisation, electrification, and improving cold-chain infra.
VBL is a key player in the beverage industry and one of the largest franchisees of PepsiCo in the world, barring the USA
CRISIL, Varun Beverages, and Sundram Fasteners have announced dividends for their respective shareholders, while Avantel has announced a rights issue, and Info Edge (India) has announced stock split
The organic volume growth was 15.5 per cent Y-o-Y apart from the consolidation of South Africa & DRC (Democratic Republic of Congo)
Q4 FY25 company results today: Varun Beverage, Jindal Steel & Power, and Federal Bank will be among 51 companies to post earnings reports for the January-March quarter on April 30
During Q1CY25, Varun Beverages' net profit zoomed 33.5 per cent Year-on-Year (Y-o-Y) to ₹731.35 crore from ₹547.98 crore reported in the corresponding quarter of the previous year
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The key concern weighing on the stock is increased competitive intensity with the relaunch of Campa Cola by Reliance Consumer Products (RCPL) in March 2023