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Revenue
₹4,805 Cr
verified against source
Revenue YoY
-2.5%
reported change
EBITDA
₹1,998.7 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Varun Beverages reported a resilient Q2 CY2025 despite an early monsoon in India, with consolidated revenue down 2.5% YoY to INR 7,017 crore and EBITDA margin expanding 82 bps to 28.5%. India volumes fell 7.1% due to unseasonal rains, but international volumes grew 15.1%, led by South Africa. PAT rose 5% to INR 1,325 crore, supported by cost controls and lower finance costs. Management highlighted sustainable cost savings from freight optimization, new plants, and renewable energy. Capacity utilization is ~70%, limiting near-term India capex. Risks include weather dependency for H2 recovery and potential margin pressure from competition. The company is actively pursuing international M&A and expanding snacks in Morocco and Zimbabwe.
Colored figures show movement against the previous available record.
Guidance to track
- Management indicated that major capex in India will be minimal for the next 1-2 years, with only INR 600-700 crore planned, primarily for maintenance and solar energy.
- Current capacity utilization is around 70%, giving enough room for growth without significant new capacity additions in India for the next two years.
- Management is actively looking for acquisitions and expansion in international markets, with capex focused on South Africa, DRC, Morocco, and Zimbabwe.
- The snacks plant in Zimbabwe is expected to commence production in October-November 2025, following the Morocco plant which started in June 2025.
Risks flagged
- Management acknowledged that Q3 performance depends on rain patterns; continued heavy rains could further impact volumes.
- Analyst raised concern about rising competition and high margins; management reiterated long-term margin guidance of 21% but current margins are higher, implying potential normalization.
- New product Sting Gold received mixed market response; management will continue pushing it but success is uncertain.
- Management is actively pursuing M&A and capex in international markets, but integration and regulatory approvals (e.g., South Africa land) pose risks.
Key quotes
- We have always predicted margins at 21%. We have never gone beyond that. We have been showing better results. That is a separate issue.
- The real answer would depend on the rain gods, which is very difficult to predict.
- We are looking for new acquisitions, and we are very actively looking at it.
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