Shares of Varun Beverages Plunge After Announcing Q4 & CY2025 Financial Results
Kiran DSIJCategories: Multibaggers, Trending
The stock gave multibagger returns of 470 per cent in just 5 years whereas the BSE Sensex Index was up by 67 per cent.
Varun Beverages Ltd (VBL) demonstrated significant financial resilience in its Q4 and full-year CY2025 results, headlined by a 14 per cent YoY revenue growth to Rs 42,044.2 million in the final quarter. Despite a year marked by "unprecedented heavy rainfall" that disrupted peak summer sales in India, the company achieved a consolidated annual revenue of Rs 2,16,853.8 million, up 8.4 per cent from the previous year. Profitability remained a high point, with Q4 PAT surging by 32.9 per cent and annual PAT rising by 16.2 per cent to reach Rs 30,620.40 million. This bottom-line growth was supported by improved sales volumes, lower finance costs, and favourable currency movements in international markets.
Strategic expansion into the African market emerged as a core growth driver during 2025. VBL announced the proposed acquisition of Twizza in South Africa, a move involving three manufacturing facilities that will significantly bolster its route-to-market capabilities. The company also expanded its footprint by incorporating a subsidiary in Kenya and entering an exclusive agreement with Carlsberg Breweries to test market beer in specific African territories. Beyond beverages, VBL is aggressively scaling its snacks portfolio, commencing commercial production of "Cheetos" in Morocco and Zimbabwe, while also securing distribution rights for PepsiCo snacks in Zambia and Zimbabwe.
Looking ahead, VBL is diversifying its operational focus and strengthening its supply chain through backward integration and infrastructure investments. The company recently updated its Memorandum of Association to include alcoholic beverages and Ready-To-Drink (RTD) products, signalling a major category expansion. Domestically, VBL commissioned four new greenfield plants across India (Uttar Pradesh, Himachal Pradesh, Bihar, and Meghalaya) to meet future demand. Complementing this growth, the Board has recommended a final dividend of Rs 0.50 per equity share, reflecting a commitment to shareholder value as the company enters CY2026 with a robust balance sheet and a widened product portfolio.
About the Company
Varun Beverages Limited (VBL) stands as a dominant force in the global beverage sector, serving as one of the largest PepsiCo franchisees outside the United States. With a partnership spanning over three decades, the company manufactures and distributes an expansive portfolio of iconic brands, ranging from carbonated favourites like Pepsi and Mountain Dew to non-carbonated offerings such as Tropicana and Aquafina. While VBL maintains a vast international footprint across Africa and South Asia, India remains its primary engine of growth, accounting for approximately 67 per cent of its revenue in Fiscal 2025 across a network covering 26 states and 6 union territories.
On Tuesday, shares of Varun Beverages Ltd plunged 3.26 per cent to Rs 451.30 per share from its previous closing of Rs 466.50 per share with a Spurt in Volume by more than 6 times on the BSE. The stock’s 52-week high is Rs 593 per share and its 52-week low is Rs 419.40 per share. The company has a market cap of over Rs 1.50 lakh crore and has delivered good profit growth of 50 per cent CAGR over the last 5 years. The shares of the company have an ROE of 17 per cent and an ROCE of 20 per cent. The stock gave multibagger returns of 470 per cent in just 5 years whereas the BSE Sensex Index was up by 67 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.