Varun Beverages posts 20% Q2 revenue growth as brokerages stay bullish despite margin pressure
Varun Beverages reported June-quarter revenue of Rs 8,451 crore, up 20.4% year on year, while volumes rose 19.8%. EBITDA margin narrowed 80 basis points to 27.7%, but brokerages retained positive calls, citing a July demand recovery, international support and longer-term growth potential.
Varun Beverages delivered double-digit June-quarter revenue, profit and volume growth, but missed EBITDA and margin estimates. Weak April weather hurt India volumes before May-June recovery; international operations supported performance. Brokerages retained positive ratings, citing encouraging July demand and sustained growth potential.
Why this matters
The result follows Varun Beverages' Q1 estimate miss and its view that Campa Cola had not hurt growth. It also supports the company's recent double-digit growth outlook despite avoiding aggressive ₹10 cola pricing.
Retail-company signals are accelerating, up 399167% quarter on quarter.