Varun Beverages shares hit a 10% upper circuit today primarily due to the company’s strong Q3 earnings and fresh business announcements that impressed investors. The stock surged as net profit for the September 2025 quarter jumped 18.5% year-on-year to Rs 745.1 crore, outpacing expectations and signaling robust performance, especially in international markets.businesstoday+3
Key Drivers Behind the Rally
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Earnings Boost: Net profit rose sharply to Rs 745.1 crore versus Rs 628.8 crore a year ago. Revenue also climbed 2% year-on-year despite subdued domestic demand due to prolonged rains, with international sales growing 9%, notably in South Africa.businesstoday+3
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New Ventures: The company announced a joint venture with Everest International for manufacturing refrigeration equipment in India and exclusive distribution tie-up with Carlsberg Breweries to test-market beer across select African subsidiaries, signaling aggressive expansion into new product categories.businesstoday+2
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Positive Market Sentiment: Large trading volumes and the reclaiming of the Rs 500 mark after over a month reflected renewed investor confidence, supported by the long-term outlook of rising per-capita beverage consumption in India and increasing rural market penetration.businesstoday+1
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Stock Performance: The sharp rally comes despite the stock being down nearly 24% for the year, highlighting a turnaround moment as the business demonstrates resilience and growth ahead of the festive season.economictimes.indiatimes+1
In summary, robust earnings, global growth, product diversification, and new partnerships powered Varun Beverages’ shares to a 10% surge and capped a dramatic comeback for the stock today.
Shares of Varun Beverages hit an upper circuit of 10% on Wednesday post Q3 earnings. Along with earnings, the company's pact with global beer brand Carlsberg also supported investor sentiment.
The company said it was incorporating a wholly owned subsidiary in Kenya under Varun Beverages Limited to carry on the business of manufacturing, distribution and selling of beverages. To enable this, the company said certain African subsidiaries of Varun Beverages, to test market beer in their territories, have entered into an exclusive Distribution Agreement with Carlsberg Breweries A/S for their brand - Carlsberg.
Varun Beverages stock rose 10.34% to Rs 500.80 against the previous close of Rs 453.85 on BSE. The stock reclaimed the key Rs 500 mark after 36 sessions. Market cap of the firm rose to Rs 1.67 lakh crore. A total of 16.11 lakh shares of the firm changed hands amounting to a turnover of Rs 78.57 crore.
Later, when the stock crossed 10% limit, its upper price band was revised to Rs 521.90.
Varun Beverages shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
The FMCG stock clocked gains of 138% in three years and rose 753% in five years.
Despite today's rally, the stock is down 24% this year and fallen 18.58% in a year, reflecting short-term correction in the stock.
The Pepsico bottler reported a 18.5% rise in net profit today for the quarter ended September 2025. Profit rose to Rs 745.1 crore in Q3 against Rs 628.8 crore on a YoY basis. Revenue climbed 2% to Rs 4896.6 crore in Q3 against Rs 4804.6.4 crore in the year ago period. However, EBITDA fell 0.3% to Rs 1147.3 cr in the last quarter against Rs 1151.11 cr on a YoY basis.
