International growth offsets weak India volumes; revenue up 1.9 per cent
Varun Beverages or VBL, a key PepsiCo franchisee, on Wednesday reported an 18.5 per cent year-on-year rise in consolidated profit after tax (Pat) to Rs 7,451.9 million for the quarter ended September 30, 2025, aided by lower finance costs and higher other income.
Revenue from operations grew 1.9 per cent to Rs 48,966.5 million during the quarter, while earnings before interest, tax, depreciation and amortisation (EBITDA) stood nearly flat at Rs 11,473.8 million.
Consolidated sales volumes rose 2.4 per cent to 273.8 million cases despite heavy rainfall across India, the company said in a statement. India volumes were largely unchanged, while international volumes increased 9 per cent, led by strong performance in South Africa.
Gross margins improved by 119 basis points to 56.7 per cent, supported by an increased share of packaged drinking water in international markets and benefits from in-house backward integration. However, Ebitda margins slipped slightly to 23.4 per cent from 24.0 per cent a year earlier.
For the nine months ended September 2025, revenue rose 7.1 per cent year-on-year to Rs 174,809.6 million, while Ebitda increased 6.8 per cent to Rs 44,101.1 million. Net profit for the period grew 14.9 per cent to Rs 28,020.4 million.
Chairman Ravi Jaipuria said the company’s international business remained robust, with South Africa recording another strong quarter. “We have delivered a steady performance during the quarter, with consolidated sales volumes rising by 2.4%, supported by healthy traction in international markets. While domestic volumes remained subdued due to prolonged rainfall across India, international operations grew by 9 per cent, said Ravi Jaipuria, Chairperson.
He added that VBL was setting up a wholly owned subsidiary in Kenya to expand its beverage operations and would begin test marketing beer in select African markets through an exclusive distribution deal with Carlsberg Breweries.
Jaipuria also said the company’s snacks plant in Morocco had ramped up to full-scale operations, while its upcoming Zimbabwe facility was on track for commissioning.
Despite subdued demand in India due to prolonged rainfall, Jaipuria said the company remained optimistic about long-term growth, supported by capacity expansion, distribution reach and cold-chain infrastructure.
