- Varun Beverages reported 15.5% rise in net profit for June quarter
- Revenue grew 20.4% to Rs 8,451 crore driven by strong volume growth
- EBITDA increased 17.2% but margin narrowed to 27.7% due to costs
Varun Beverages Ltd. shares fell sharply on Tuesday even after the PepsiCo bottler reported a strong set of earnings for the quarter ended on June 30, with revenue and profit rising in double digits.
The stock tanked over 6% to Rs 436.45 apiece on the NSE around 1.53 p.m., down from its previous close at Rs 464.5.
Investors were also tracking the company's continued expansion plans in Africa, recent strategic partnerships, and the announcement of a second interim dividend alongside the quarterly results.
Revenue, Profit Register Double-Digit Growth
Varun Beverages reported a consolidated net profit of Rs 1,521 crore for the June quarter, up 15.5% from Rs 1,317 crore a year earlier.
Revenue from operations, excluding excise duty, rose 20.4% year-on-year to Rs 8,451 crore, driven by strong volume growth across markets. Ebitda increased 17.2% to Rs 2,343 crore from Rs 1,999 crore in the corresponding quarter last year.
However, the EBITDA margin narrowed to 27.7% from 28.5% a year ago, reflecting higher operating costs despite healthy revenue growth.
Second Interim Dividend Approved
The company also announced that the board had approved a second interim dividend of Rs 0.50 per equity share for CY2026, with August 1 fixed as the record date, and the eligible shareholders will receive the dividend 4 August 2026 onwards.
“The 2nd interim dividend will be paid on and from Tuesday, August 4, 2026 to those shareholders whose name appears in the Register of Members of the Company or in the list of beneficial owners maintained by the Depositories as on Saturday, August 1, 2026,” the company stated in the exchange filing.
Also Read: Varun Beverages Declares Second Interim Dividend — Check Payout, Record Date
Shares in Red for Prolonged Period
Varun Beverages shares have been trading in the red for a year now, and today's fall just made it worse. In the past year, the stock fell over 7.8%, while in the past month itself, it tanked over 11.5%.
Currently, it is trading at a price-to-earnings multiple of 48.8 times, with a market cap of Rs 1,53,063 crore as at the end of the previous trading session.
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