**MARKET BRIEF: Varun Beverages Q4 CY2025 Performance** **Report Date:** February 3, 2026 **Subject:** Quarterly Earnings & Strategic Update **Executive Summary** PepsiCo’s influential franchisee, **Varun Beverages Ltd (VBL)**, released its audited financial results today for the quarter and year ended December 31, 2025. The company delivered double-digit growth in both top and bottom lines, driven by a robust recovery in domestic volumes and sustained momentum in international territories. **Key Financial Highlights (Q4 CY2025)** * **Net Profit:** Consolidated profit after tax (PAT) surged **32.9%** year-on-year to **₹260 crore**, significantly outpacing the ₹195.6 crore recorded in the same quarter last year. * **Revenue:** Operations generated **₹4,204 crore**, marking a **14%** increase from ₹3,689 crore in the corresponding period of CY2024. * **EBITDA:** Earnings before interest, tax, depreciation, and amortization rose **10.2%** to **₹639 crore**, reflecting disciplined operational cost management despite broader inflationary pressures. * **Margins:** Profitability was supported by lower finance costs and higher "other income," which buffered margins against rising input costs. **Volume Analysis** Consolidated sales volume witnessed a healthy uptick of **10.2%**, reaching **237.1 million cases** for the quarter. * **India Markets:** Domestic volumes grew **10.5%**, signaling a strong demand recovery following weather-related disruptions experienced earlier in the year. * **International Markets:** Overseas territories maintained a steady growth trajectory with a **10%** increase in volumes, led primarily by African operations. **Full Year Performance (CY2025)** For the calendar year 2025, VBL demonstrated resilience amidst a challenging operating environment: * **Annual Revenue:** Rose **8.4%** to stand at **₹21,685 crore**. * **Annual Net Profit:** Increased **16.2%** to **₹3,062 crore**. * **Total Volumes:** Grew **7.9%** to **1,213 million cases**. **Strategic Developments & Corporate Action** The Board of Directors has recommended a final dividend of **₹0.50** per equity share. Expanding its African footprint remains a core priority, with the company confirming significant strategic moves: * **Acquisitions:** Proposed acquisition of **Twizza (Pty) Limited** in South Africa to bolster local manufacturing capabilities. * **New Agreements:** Entry into an exclusive distribution agreement with **Carlsberg** to test-market beer in select African jurisdictions. * **Infrastructure:** Commissioning of new greenfield facilities in India to support future volume leverage. **Market Reaction** Contrasting with the positive earnings print, market sentiment remained cautious. VBL stock witnessed profit booking during Tuesday's session, ending the day **lower by approximately 3.3%** at **₹451.30** on the BSE, correcting from earlier intraday highs. Investors appear to be weighing the solid Q4 recovery against broader valuation metrics and global volatility. **Outlook** Management remains optimistic about the upcoming season, citing the stabilization of new production facilities and the strengthening of the distribution network. The focus for 2026 includes integrating new African assets and capitalizing on the backward integration projects commissioned over the last fiscal year.