Varun Beverages' Q2 FY 2025-26 Quarterly Results

Result Summary

• Varun Beverages Ltd reported a 28.9% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 4.5%.
• Its expenses for the quarter were down by 23.5% QoQ and up 1.8% YoY.
• The net profit decreased 43.8% QoQ and increased 18.5% YoY.
• The earnings per share (EPS) of Varun Beverages Ltd stood at 2.19 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Varun Beverages Ltd is a prominent player in the beverage industry, primarily engaged in the production and distribution of a wide range of carbonated and non-carbonated drinks. As one of the largest franchisees of PepsiCo, the company operates in several countries, offering popular brands such as Pepsi, Mountain Dew, and Tropicana. The company continues to expand its market presence and product portfolio, focusing on both domestic and international markets. Recent developments within the company have emphasized growth through strategic acquisitions and enhancing production capabilities to meet the increasing demand for its beverages. However, specific recent major developments beyond this are not available.

Revenue

For the quarter ending Q2FY26, Varun Beverages Ltd reported a total income of ₹5044.68 crores, showing a quarter-over-quarter decline of 28.9% from Q1FY26's ₹7094.53 crores. Despite this decrease, the company achieved a year-over-year increase of 4.5% compared to Q2FY25, where the total income was ₹4828.93 crores. This indicates a positive year-over-year growth trajectory. The quarter-over-quarter decline may be attributed to various seasonal factors impacting the beverage industry, though specific reasons are not detailed in the data provided. The revenue figures highlight the company’s ability to grow its top line over the year, notwithstanding the short-term fluctuations observed in sequential quarters.

Profitability

The company's profitability metrics for Q2FY26 revealed a significant decrease on a quarter-over-quarter basis but an increase on a year-over-year basis. The profit before tax stood at ₹942.59 crores, a 45.6% drop from the previous quarter's ₹1733.23 crores but a 17.8% increase from ₹800.23 crores recorded in Q2FY25. Similarly, profit after tax was ₹745.19 crores, marking a decline of 43.8% from Q1FY26's ₹1325.48 crores, yet showing an 18.5% increase compared to the previous year. The tax expense also decreased by 51.9% QoQ to ₹195.72 crores from ₹406.56 crores, reflecting the overall lower profit figures for the quarter. Year-on-year, the tax increased by 14.2% from ₹171.31 crores. These figures suggest a trend of growing profitability over the year despite recent quarterly challenges.

Operating Metrics

In terms of operating metrics, the total expenses for the quarter were reported at ₹4102.08 crores, which is a 23.5% decrease from the previous quarter's ₹5361.30 crores. However, there was a slight year-over-year increase of 1.8% from ₹4028.71 crores in Q2FY25. This reduction in expenses on a quarterly basis aligns with the decline in total income. The earnings per share (EPS) for Q2FY26 were ₹2.19, reflecting a 43.7% decrease from the previous quarter's ₹3.89, but a 14.7% increase from ₹1.91 in Q2FY25. The change in EPS correlates with the trends observed in net profit metrics. This data suggests a fluctuating quarterly performance with a consistent year-over-year growth pattern in key operating metrics.