Varun Beverages Limited reported a significant 18.5% increase in profit after tax (PAT) for the third quarter of the calendar year 2025, reaching Rs. 7,451.9 million compared to Rs. 6,288.3 million in the same period last year. The company's financial results were discussed during an investors and analysts conference call held on October 29, 2025, following the release of their unaudited financial results for the quarter and the first nine months of the year. The company experienced a 2.4% rise in consolidated sales volumes, driven primarily by strong international performance, particularly in South Africa, despite subdued domestic volumes due to adverse weather conditions.
In the third quarter, Varun Beverages generated net revenue of Rs. 48,966.5 million, reflecting a 1.9% year-on-year increase from Rs. 48,046.8 million in Q3 CY2024. The company noted a shift in the sales mix with packaged drinking water making up a significant portion of total sales volumes, while carbonated soft drinks (CSD) accounted for 74% of the mix. Gross margins improved to 56.7%, aided by increased contributions from packaged products, although the company did report a shift in some expenses from raw material purchases to operational costs due to increased in-house production. Varun Beverages also maintained a strong balance sheet, remaining debt-free at the consolidated level.
Looking ahead, Varun Beverages highlighted its commitment to expanding its operations with a new wholly-owned subsidiary in Kenya focused on dairy and beverage manufacturing. The company is also diversifying its product line through an exclusive distribution agreement with Carlsberg Breweries A/S to test market beer in certain African territories. Despite challenges in the Indian market, the company remains optimistic about long-term growth driven by rising per capita consumption and expanding distribution infrastructure. With ongoing investments in capacity expansion and operational efficiency, Varun Beverages is well-positioned to capitalize on future demand recovery, aiming for sustained growth across its domestic and international markets.