VARUN BEVERAGES 2024-25 Annual Report Analysis

Tue, 14 Apr

VARUN BEVERAGES has announced its results for the year ended December 2025. Let us have a look at the detailed performance review of the company during FY24-25.

VARUN BEVERAGES Income Statement Analysis

• Operating income during the year rose 8.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.0% in CY25 as against 24.3% in CY24.
• Depreciation charges increased by 28.4% and finance costs decreased by 59.4% YoY, respectively.
• Other income grew by 190.6% YoY.
• Net profit for the year grew by 16.2% YoY.
• Net profit margins during the year grew from 13.5% in CY24 to 14.5% in CY25.

VARUN BEVERAGES Income Statement 2024-25

No. of Mths Year Ending		12 Dec-24*	12 Dec-25*	% Change
Net Sales	Rs m	195,340	211,452	8.2%
Other income	Rs m	1,213	3,523	190.6%
Total Revenues	Rs m	196,552	214,975	9.4%
Gross profit	Rs m	47,421	50,697	6.9%
Depreciation	Rs m	9,474	12,165	28.4%
Interest	Rs m	4,829	1,960	-59.4%
Profit before tax	Rs m	34,331	40,096	16.8%
Tax	Rs m	7,988	9,476	18.6%
Profit after tax	Rs m	26,343	30,620	16.2%
Gross profit margin	%	24.3	24.0
Effective tax rate	%	23.3	23.6
Net profit margin	%	13.5	14.5

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VARUN BEVERAGES Balance Sheet Analysis

• The company's current liabilities during CY25 down at Rs 41 billion as compared to Rs 45 billion in CY24, thereby witnessing an decrease of -10.0%.
• Long-term debt down at Rs 5 billion as compared to Rs 8 billion during CY24, a fall of 35.7%.
• Current assets rose 0% and stood at Rs 79 billion, while fixed assets rose 16% and stood at Rs 176 billion in CY25.
• Overall, the total assets and liabilities for CY25 stood at Rs 255 billion as against Rs 231 billion during CY24, thereby witnessing a growth of 10%.

VARUN BEVERAGES Balance Sheet as on December 2025

No. of Mths Year Ending		12 Dec-24*	12 Dec-25*	% Change
Networth	Rs m	165,914	195,602	17.9
Current Liabilities	Rs m	45,244	40,739	-10.0
Long-term Debt	Rs m	8,407	5,404	-35.7
Total Liabilities	Rs m	231,243	255,407	10.4
Current assets	Rs m	78,640	78,894	0.3
Fixed Assets	Rs m	152,603	176,447	15.6
Total Assets	Rs m	231,243	255,407	10.4

VARUN BEVERAGES Cash Flow Statement Analysis

• VARUN BEVERAGES's cash flow from operating activities (CFO) during CY25 stood at Rs 35 billion, an improvement of 3.8% on a YoY basis.
• Cash flow from investing activities (CFI) during CY25 stood at Rs -27 billion on a YoY basis.
• Cash flow from financial activities (CFF) during CY25 stood at Rs -13 billion on a YoY basis.
• Overall, net cash flows for the company during CY25 stood at Rs -5 billion from the Rs 20 billion net cash flows seen during CY24.

VARUN BEVERAGES Cash Flow Statement 2024-25

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-24	Dec-25
Cash Flow from Operating Activities	Rs m	33,811	35,093	3.8%
Cash Flow from Investing Activities	Rs m	-43,168	-27,349	-
Cash Flow from Financing Activities	Rs m	29,535	-12,665	-
Net Cash Flow	Rs m	20,241	-4,821	-

Current Valuations for VARUN BEVERAGES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.1, an improvement from the EPS of Rs 7.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 489.9, stands at 54.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.5 times, while the price to sales ratio stands at 7.8 times.
• The company's price to cash flow (P/CF) ratio stood at 42.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-24*	12 Dec-25*
Sales per share (Unadj.)	Rs	57.8	62.5
TTM Earnings per share	Rs	7.8	9.1
Diluted earnings per share	Rs	7.8	9.1
Price to Cash Flow	x	60.3	42.8
TTM P/E ratio	x	81.9	54.0
Price / Book Value ratio	x	11.8	9.4
Market Cap	Rs m	1,963,508	1,831,516
Dividends per share (Unadj.)	Rs	1.0	1.5

Ratio Analysis for VARUN BEVERAGES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during CY25, from 1.7x during CY24. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 21.5x during CY25, from 8.1x during CY24. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 15.7% during CY25, from 15.9% during CY25. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 20.9% during CY25, from 22.5% during CY24. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 12.8% during CY25, from 13.5% during CY24. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-24*	12 Dec-25*
Current ratio	x	1.7	1.9
Debtors’ Days	Days	16	22
Interest coverage	x	8.1	21.5
Debt to equity ratio	x	0.1	0.0
Return on assets	%	13.5	12.8
Return on equity	%	15.9	15.7
Return on capital employed	%	22.5	20.9

To see how VARUN BEVERAGES has performed over the last 5 years, please visit here.

VARUN BEVERAGES Share Price Performance

Over the last one year, VARUN BEVERAGES share price has moved down from Rs 559.2 to Rs 539.6, registering a loss of Rs 19.6 or around 3.5%.

Overall, the S&P BSE SENSEX is up 6.1% over the year.

(To know more, check out historical annual results for VARUN BEVERAGES and quarterly results for VARUN BEVERAGES)