VBL

Varun Beverages Ltd posted a robust performance for the January–March quarter, reporting a 20.1 percent year-on-year increase in consolidated net profit to Rs 878.7 crore, driven by strong volume growth across both domestic and international markets. Revenue (net of excise duty) rose 18.1 percent to Rs 6,574.2 crore during the period. Shares of the company initially declined following the earnings announcement but quickly recovered, moving into positive territory. The stock was trading over 1 percent higher at Rs 495.5 on the NSE in afternoon trade. Operationally, the company remained strong, with EBITDA rising 21 percent to Rs 1,528.9 crore. EBITDA margin improved to 23.3 percent, up 55 basis points compared to the same quarter last year. On a standalone basis, revenue grew 11 percent to Rs 4,500.5 crore, while net profit increased 16 percent to Rs 787.9 crore for the quarter. The company also reported an improvement in gross margins, which expanded by 62 basis points to 55.2 percent. This was supported by early procurement of key raw materials and a higher contribution from low- and no-sugar products, which made up around 63 percent of total consolidated volumes.