Adobe Stock
There's no off-season for thirst, and Varun Beverages is proving just that. The Pepsi bottler's Q4 CY25 numbers are anything but flat: profit up 35 per cent, volumes up 30 per cent and revenue up 29 per cent. Even the board cracked open a small dividend.
On the surface, it's a textbook growth story. But with the stock already trading at a P/E of 70, there's not much margin for safety. The business is in top gear. The market's expectations? Even higher.
Varun Beverages Q4 at a glance
| Metric | Q4 CY25 | Q4 CY24 | YoY change |
|---|---|---|---|
| Revenue from operations | ₹5,680 crore | ₹4,398 crore | ↑ 29% |
| Net profit | ₹726 crore | ₹537 crore | ↑ 35% |
| EBITDA | ₹1,264 crore | ₹989 crore | ↑ 28% |
| EBITDA margin | 0.223 | 0.225 | ↓ 20 bps |
| Sales volume | 312.4 million cases | 240.2 million cases | ↑ 30% |
Also announced: a Rs 0.50/share dividend, with payouts starting May 9.
What's working
The playbook is simple—sell more bottles across more geographies. And that's happening. India clocked 15.5 per cent organic growth, while acquisitions in South Africa and Congo added firepower.
Behind the scenes, Varun has been busy expanding capacity—new plants in Prayagraj and Kangra, backwards integration units and wider distribution are helping it ride the heat (and beat it).
What's not
Margins are showing a little strain. Gross margins slipped 171 basis points to 54.6 per cent, hit by a heavier carbonated mix and lower profitability overseas.
Is it a red flag? Not yet. But in a business where seasonality and input costs can swing fast, even small cracks need watching.
Value Research Online Ratings
Value Research Stock Rating gives Varun Beverages an overall rating of 3 stars out of 5. The company's specific scores are as follows:
-
Quality Score: 10/10
-
Growth Score: 4/10
-
Valuation Score: 3/10
- Momentum Score: 5/10
- Use our Stock Screener to compare key financial metrics across the beverage and FMCG space
- And don't forget to check out its Stock Card for a quick, one-page company snapshot.
The final word
For now, Varun Beverages is firing on all cylinders—more sales, better scale and smooth execution. But the stock isn't cheap. At 70 times earnings, a great quarter like this isn't just welcomed, it's expected.
That's the tightrope Varun now walks. Even a decent quarter may not impress the market unless it comes with a surprise fizz.
Looking for more than just market buzz?
At
Value Research Stock Advisor
, we go beyond trends. As a subscriber, you get access to a carefully curated list of high-conviction stock recommendations, three ready-to-use portfolios (aggressive growth, long-term growth and dividend growth) and timely updates—built on long-term thinking, not just headlines. Whether you are looking to build a solid portfolio or simply make more informed investment decisions, we are here to help you cut through the noise.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
