Shares of Varun Beverages (VBL) surged over 4 per cent in early trade on Wednesday following Q2FY25 results.
The company posted 5 per cent increase in consolidated net profit for the quarter ended June 2025 at ₹1,317.02 crore as against ₹1,252.60 crore in the corresponding quarter last year.
Meanwhile, the revenue from operations dropped 2.3 per cent to ₹7,163.02 crore during the quarter under review as against ₹7,333.67 crore in the year-ago period.
Brokerages have broadly maintained positive stance on the stock. CLSA has maintained an outperform rating at a target price of ₹774 and Jefferies maintained buy at ₹600 per share.
Nuvama Institutional Equities retained buy at a revised target price from ₹659 to ₹606 per share, emphasising the revenue miss below its estimates. The brokerage highlighted that the September quarter may be affected due to heavy monsoon rainfall.
Motilal Oswal expects annual EBITDA margins to sustain around the current levels, supported by further backward integration, the ramp-up of newly opened facilities and an improved product mix. Motilal maintained its CY25/CY26 earnings estimates and reiterated buy at ₹620 target price per share.
JM Financial observed that the weakness in domestic volumes was offset by strong delivery on margins. The brokerage maintained buy at an increased target price from ₹570 to ₹595.
In addition, the company’s board approved payment of 2nd interim dividend of ₹0.50 per equity share for FY25, and fixed August 2, 2025 as the record date for the purpose.
Board also appointed Pankaj Madan as a Chief Financial Officer (CFO) w.e.f. July 30, 2025.
It also approved the incorporation of a joint venture company in India to carry on the business of manufacturing of visi-coolers and other refrigeration equipments.
The stock traded 2.06 per cent positive on the BSE at ₹522.75 as at 10.20 am, hitting an early high of ₹534 against the previous close of ₹512.20.
Published on July 30, 2025
