Varun Beverages (VBL) Q4 2025 earnings summary

Executive summary

• Consolidated volumes grew 7.9% and revenue rose 8.4% for CY/FY 2025, with EBITDA up 7.2% and PAT up 16.2% to INR 30,620.4 million, despite weather disruptions in India.

• Q4 saw a recovery with domestic volumes up 10.5% and international volumes up 10%, driven by network expansion and capacity enhancements.

• Four new greenfield plants and backward integration facilities were commissioned, expected to support higher volumes and operating leverage.

• International operations, especially Africa, continued to scale, with the proposed acquisition of Twizza in South Africa and a new subsidiary in Kenya.

• Board recommended a final dividend of INR 0.50 per share, subject to approval.

Financial highlights

• Revenue from operations (adjusted for excise and GST) increased to INR 222,255.84 million in FY25, up from INR 204,813.28 million in FY24.

• Consolidated sales volumes reached 1,213 million cases, up from 1,124 million in CY 2024.

• Q4 CY 2025 sales volumes rose 10.2% to 237.1 million cases; Q4 net revenue up 14% to INR 42,044.2 million.

• Net realization per case improved 3.4% in Q4 to INR 177.3; full-year realization up 0.5% to INR 178.8.

• PAT for FY25 was INR 30,620.42 million, up from INR 26,342.85 million in FY24.

Outlook and guidance

• Confident in long-term growth across India and international markets, supported by demographics, rising incomes, and robust distribution.

• Double-digit volume growth in India is expected if weather normalizes; mid-teen growth possible with favorable conditions.

• Minimal CapEx planned for India in 2026; international CapEx focused on South Africa and Twizza acquisition.

• New capacities and backward integration expected to support higher volumes and operating leverage.

• Expansion into Kenya and Africa to diversify revenue streams.