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Shares of Varun Beverages jumped 8.5% on October 29 after the company announced a strategic partnership with Carlsberg
Varun Beverages
Shares of Varun Beverages jumped 8.5% on October 29 after the company announced a strategic partnership with Carlsberg to enter the beer business in Africa and reported a 19% year-on-year rise in net profit for the September quarter.
The Pepsi bottler said its consolidated net profit rose to Rs 745 crore, supported by lower finance costs and higher other income, which included interest on deposits in India and favorable currency movements in international markets. Revenue increased 2% to Rs 4,897 crore during the quarter.
Varun Beverages also announced the incorporation of a wholly-owned subsidiary in Kenya to undertake the manufacturing, distribution, and sale of beverages.
In a stock exchange filing, the company said, “Certain African subsidiaries of VBL, to test market beer in their territories, have entered into an exclusive Distribution Agreement with Carlsberg Breweries A/S for the Carlsberg brand.”
The company added that it sees “an opportunity for expansion into the business of Ready-to-Drink (RTD) and alcoholic beverages of any type or description, including beer, wine, liquor, brandy, whisky, gin, rum, and vodka, in India and abroad.”
At 12:35 p.m., shares were trading 8.5% higher at Rs 493 apiece on the NSE — their biggest intraday gain in nearly a year — with 17 million shares changing hands, almost four times the 30-day average.
Chairman Ravi Jaipuria said the company delivered a steady performance during the quarter, with consolidated sales volumes rising 2.4%, supported by 9% growth in international markets. Domestic volumes, however, were subdued due to prolonged rainfall across India.
He added that South Africa continued to deliver strong growth, and the company sees “significant potential” to strengthen its market position there. The new Kenya subsidiary and the Carlsberg partnership, he said, reflect VBL’s commitment to broadening its product portfolio and deepening its international presence.
Meanwhile, EBITDA remained flat, with margins declining slightly by 53 basis points to 23.4% in Q3 CY2025, compared with 24.0% in Q3 CY2024.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
October 29, 2025, 14:42 IST
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