Varun Beverages (VBL) Q2 2025 earnings summary

Executive summary

• Delivered resilient Q2 2025 performance despite early monsoon rains in India, with strong international growth and positive currency impact supporting PAT despite a 3% sales volume decline.

• Commenced commercial production of Cheetos in Morocco, expanding into snacks and diversifying revenue streams.

• Enhanced capacity with new can line in Dabar and South Africa, and commissioned new greenfield plants in India.

• Board approved a second interim dividend of INR 0.50 per share, totaling INR 1,691 million in cash outflow.

• Appointed Mr. Pankaj Madan as CFO and KMP effective July 30, 2025.

Financial highlights

• Q2 2025 revenue from operations was INR 71,630.21 million, down 2.5% year-on-year; H1 revenue grew 9.3% to INR 128,430.47 million.

• Consolidated sales volume declined 3% in Q2, with India down 7.1% and international up 15.1%, led by 16.1% growth in South Africa.

• Q2 2025 PAT grew 5% to INR 13,254.88 million; H1 PAT up 13.6% to INR 20,568.46 million.

• EBITDA margin improved to 28.5% in Q2 2025, with gross margin steady at 54.5%.

• Standalone H1 2025 revenue was INR 93,575.49 million, with net profit after tax at INR 16,194.08 million.

Outlook and guidance

• Focus on leveraging enhanced capacities, diversified portfolio, and expanded distribution to capture demand recovery and long-term value.

• Robust capacities operational, with ongoing investments in visi-coolers and retail touchpoints to drive growth.

• September quarter outlook depends on weather; favorable base and cost controls position the company well for growth if weather improves.