Varun Beverages Ltd. (VBL), PepsiCo’s largest bottler outside the U.S., has delivered a robust set of updates on July 29, 2025, signaling strategic expansion and strong financial momentum. The company announced the approval of a joint venture in India for refrigeration equipment, posted a stellar Q2 earnings beat, and confirmed the appointment of Pankaj Madan as Chief Financial Officer effective July 30, 2025.
Key Highlights from the Quarter
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Consolidated revenue from operations surged to ₹71.63 billion, up 28.7% year-on-year
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Net profit rose to ₹13.17 billion, beating IBES estimates of ₹11.3 billion
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EBITDA margin expanded to 27.7%, driven by operating leverage and cost efficiencies
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Refrigeration JV approved to enhance cold chain infrastructure across India
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Pankaj Madan appointed CFO to lead financial strategy and governance
Refrigeration JV: Strategic Infrastructure Play
VBL’s newly approved joint venture for refrigeration equipment marks a pivotal move to strengthen its backend capabilities.
The initiative aims to:
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Expand cold chain coverage in semi-urban and rural markets
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Support distribution of temperature-sensitive products like dairy and juices
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Reduce energy consumption through eco-efficient cooling systems
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Enable faster rollout of new SKUs with tailored refrigeration formats
This JV aligns with VBL’s broader strategy to deepen market penetration and improve product availability during peak seasons.
Financial Performance: Q2 CY25 Snapshot
The company’s June-quarter results reflect strong demand and operational discipline:
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Revenue from operations: ₹71.63 billion vs ₹55.61 billion in Q2 CY24
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Net profit: ₹13.17 billion vs ₹10.05 billion in Q2 CY24
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EBITDA: ₹19.91 billion, up 31.8% year-on-year
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Sales volume: 401.6 million cases, up 28.1% year-on-year
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India volume growth: 22.9%; South Africa volume growth: 13%
Gross margins improved by 220 basis points to 54.7%, aided by strategic procurement of PET chips and packaging light-weighting. Realization per case in India rose 1.8%, while international markets remained stable.
CFO Appointment: Governance and Growth Focus
Pankaj Madan’s appointment as CFO comes at a time when VBL is scaling operations across geographies. His mandate includes:
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Strengthening financial controls and investor communication
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Overseeing capital allocation for refrigeration JV and new facilities
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Driving digital finance transformation and ESG-linked reporting
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Supporting M&A evaluations and strategic partnerships
Madan succeeds Rajesh Chawla, who served as interim CFO since May 2024. His appointment reflects VBL’s commitment to leadership continuity and financial rigor.
Operational Updates and Expansion Milestones
VBL continues to invest in capacity and geographic reach:
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New production facilities launched in Prayagraj and Kangra in Q2
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Commercial production started in Kinshasa, DRC, with two PET lines
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Snacks franchising deal signed with PepsiCo for Zimbabwe and Zambia
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Solar power JV initiated for captive consumption in Gorakhpur
These developments are expected to support volume growth and margin resilience in upcoming quarters.
Outlook and Strategic Priorities
With strong Q2 results and infrastructure expansion underway, VBL is well-positioned for sustained growth.
Key priorities include:
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Enhancing refrigeration footprint to support rural distribution
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Scaling snack and dairy segments in Africa and India
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Improving margin profile in South Africa through product mix optimization
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Deepening ESG initiatives and renewable energy integration
The company’s performance and strategic clarity continue to attract investor confidence, with analysts maintaining bullish outlooks for CY25.
Source: NDTV Profit – July 29, 2025 Business Standard – July 29, 2025 Moneycontrol – July 29, 2025 Varun Beverages Investor Relations – July 29, 2025
