Revenue from operations (net of excise/GST) in Q3 CY2025 stood at Rs 4,896.6 crore, marking a 1.9% YoY rise from Rs 4,804.7 crore in Q3 CY2024.
The profit growth was driven by lower finance cost and higher other income, including interest on deposits in India and favorable currency movement in international territories.
The company’s EBITDA slipped marginally by 0.3% to Rs 1,147.3 crore in Q3 CY2025 from Rs 1,151.2 crore in the year-ago period. Gross margins improved by 119 basis points to 56.7%, supported by a shift in expenses in international markets and an increase in in-house backward integration initiatives.
However, EBITDA margins dropped by 53 basis points to 23.4% from 24.0% in Q3 CY2024, primarily due to higher other expenses.
Consolidated sales volume rose by 2.4% YoY to 273.8 million cases, up from 267.5 million cases in the same quarter last year. While India volumes remained nearly flat, international volumes posted a 9% YoY growth, led by strong performance in South Africa.Varun Beverages’ net realisation per case stood at Rs 178.8 in Q3 CY2025, compared to Rs 179.6 in Q3 CY2024, due to a higher mix of water in international markets. In terms of product mix, carbonated soft drinks (CSD) contributed 74%, non-carbonated beverages (NCB) 4%, and packaged drinking water 22%.
Varun Beverages’ 9-month performance
For the nine months ended September 2025 (9M 2025), Varun Beverages reported a 14.9% YoY increase in PAT, which came in at Rs 2,802.0 crore as compared to Rs 2,438.6 crore in 9M 2024. Revenue from operations grew 7.1% YoY to Rs 17,480.9 crore from Rs 16,318.9 crore during the same period last year.
Notably, low sugar/no added sugar products accounted for ~56% of consolidated sales volumes and approximately 45% in India.
EBITDA during the 9-month period rose 6.8% to Rs 4,410.1 crore, up from Rs 4,131.1 crore in 9M 2024.
“While the extended monsoon season impacted consumption trends in India, we remain confident in the significant long-term potential of the domestic beverage industry. With low per capita consumption and rising penetration in semi-urban and rural markets, the opportunity for growth continues to be immense. Our ongoing investments in capacity expansion, distribution reach, and cold-chain infrastructure are further strengthening on-ground execution, ensuring we are well-prepared to capture demand recovery in the upcoming season and deliver sustainable growth for all stakeholders,” said Ravi Jaipuria, Chairman of Varun Beverages, while commenting on the outlook for the company.
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The Q3 results of Varun Beverages were posted during the market hours, post which, the stock was seen trading 7.11% higher at Rs 486.10 on the BSE around 12:35 pm.
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