Varun Beverages reported a strong performance for the full year CY2025, achieving consolidated volume growth of 7.9% and revenue growth of 8.4%. Profit After Tax (PAT) surged by 16.2% to Rs. 30,620.4 million, driven by robust execution despite weather challenges. The company highlighted stabilized new capacities and signaled continued confidence in achieving double-digit growth for CY2026 under reasonable weather conditions, while maintaining a strong focus on international scaling, particularly in Africa.
CY2025 Performance Overview
Varun Beverages announced results for the Quarter and Full Year ended December 31, 2025, showcasing business resilience. For the full calendar year CY 2025, consolidated volumes grew by 7.9%, leading to an 8.4% increase in revenue (adjusted for excise and GST) to Rs. 216,853.8 million. EBITDA grew by 7.2% to Rs. 50,493.7 million, with margins remaining stable at 23.3%. The most notable achievement was the 16.2% jump in Profit After Tax (PAT), reaching Rs. 30,620.4 million.
In the fourth quarter of CY 2025 (Q4 CY2025), consolidated sales volumes saw a significant increase of 10.2% to 237.1 million cases. This strong quarter was supported by domestic volumes growing 10.5% and international volumes growing 10%.
Volume Mix and Realization
For the full year, the company noted that the mix of low sugar and no sugar products increased to approximately 59% of consolidated volumes. Net realization per case saw marginal improvement, growing 0.5% to Rs. 178.8 for the full year, although Q4 realization improved by 3.4% to Rs. 177.3.
Management clarified that the 4% gap between double-digit volume growth in India and single-digit sales growth in 2025 was primarily due to competitive discounting and off-season weak demand, rather than a change in product mix. Management expects this dynamic to normalize with volume growth in the coming year.
Capital Expenditure and Balance Sheet Strength
During CY 2025, the company capitalized approximately Rs. 45,000 million in CAPEX. This included Rs. 17,000 million for setting up 4 greenfield production facilities in India and Rs. 13,000 million in international markets for backward integration and capacity enhancement. Capital work in progress stood at approximately Rs. 5,400 million as of year-end.
The balance sheet remains robust. The India business remained net debt-free with free cash of ~Rs. 12,250 million. Consolidated net debt was only Rs. 256 million. Reflecting this strength, CRISIL upgraded the company’s long-term credit rating to AAA/stable. The Board has recommended a final dividend of Rs. 0.50 per equity share.
International Focus and Future Outlook
International operations scaled well, led by Africa International volumes growing 10% in Q4. The proposed acquisition of Twizza in South Africa is noted as a key strategic move to significantly enhance manufacturing footprint there.
For CY 2026 CAPEX, management stated that India will see very low CAPEX as capacity is adequate. Major international CAPEX will center on the inorganic acquisition of Twizza, which is expected to add 70% – 80% capacity in South Africa.
Regarding the snack food business, revenue for CY2025 was Rs. 340 crores. Management anticipates significantly higher volumes in CY2026 as the Zimbabwe facility has completed its first full year of operation.
India Margin and Seasonal Expectations
When questioned about the near 26% standalone India EBITDA margin achieved in 2025, management stated their long-term guidance remains at 22% – 23% but expressed happiness if they can maintain levels close to current levels. They remain confident in achieving double-digit volume growth in India for CY 2026, provided weather conditions are reasonable, building on the soft base of Q2 and Q3 in the previous year.
New Category Expansion
Varun Beverages confirmed the addition of alcoholic beverages as a category, starting with a capital allocation focus on setting up one greenfield plant with Carlsberg in Africa this year, which is expected to be ready by the end of next year. For the domestic business, new launches include more flavors for the growing Nimbooz brand and the launch of the Nimbooz Jeera range.
Source: BSE
