Indian consumers are increasingly opting for carbonated beverages with low or no added sugar, according to data from the first half of calendar year 2025 shared by PepsiCo’s bottling partner in India. These products accounted for 55% of the company’s total beverage sales volume during this period.
“Every product will slowly start getting into mid-calorie and no-sugar segments. As of now, we have no-sugar 7 Up, Pepsi Black and Gatorade in India,” said Ravi Jaipuria, Chairman of Varun Beverages, the bottling partner. “Consumers have accepted this well and we are performing extremely well,” he added.
The company sold 386.1 million cases of low sugar/no sugar drinks out of total 702 million cases sold in H1 CY2025. (unit case – 5.678 liters of beverage divided in 24 bottles of ~ 237 ml each)
In CY 2024, low- and no-sugar beverages accounted for 44.4% of PepsiCo’s sales volume, an increase from 40.2% in the previous year, based on earlier data released by Varun Beverages
During Q2 CY2025, Varun Beverages sold 390 million cases. Carbonated soft drinks represented 75% of total sales, followed by non-carbonated beverages at 7%, and packaged drinking water at 18%, maintaining the same proportions as in the first quarter, as per news report by The Economic Times.
Financial Performance Highlights:
Performance Review for Q2 CY2025 vs. Q2 CY2024
• Revenue from operations (net of excise / GST) decreased by 2.5% YoY to Rs. 70,173.7 million in Q2 CY2025 as compared to Rs. 71,968.6 million in Q2 CY2024
-Consolidated sales volume declined by 3.0% to 389.7 million cases in Q2 CY2025 from 401.6 million cases in Q2 CY2024, primarily due to abnormally high unseasonal rainfall throughout the quarter in India
India volumes declined by 7.1%, while international volumes grew by 15.1% (South Africa growing at 16.1%), partially offsetting the overall decline
Net realisation per case at the consolidated level improved by 0.5%, driven by 6.6% improvement in the International markets.
• EBITDA increased by 0.4% in Q2 CY2025 to Rs. 19,987.7 million from Rs. 19,912.2 million in Q2 CY2024
-Gross margins remained steady at 54.5% in Q2 CY2025
-EBITDA margins increased by 82 bps in Q2 CY2025 to 28.5% from 27.7% in Q2 CY2024, in-spite of increase in fixed overheads due to new capacity being commissioned at four greenfield plants in India which all are yet to yield incremental volumes.
• PAT increased by 5.0% to Rs. 13,254.9 million in Q2 CY2025 from Rs. 12,618.3 million in Q2 CY2024 driven by operational efficiencies and lower finance cost
Performance Review for H1 2025 vs. H1 2024
• Revenue from operations grew 9.3% YoY to Rs. 125,843.1 million in H1 2025 as compared to Rs. 115,141.8 million H1 2024
– In H1 CY2025, mix of Low / No added sugar products was ~ 55% of consolidated sales volumes
• EBITDA increased by 9.5% to Rs. 32,627.4 million in H1 2025 from Rs. 29,799.8 million in H1 2024
• PAT higher by 13.6% to Rs. 20,568.5 million in H1 2025 from Rs. 18,098.2 million in H1 2024
Varun Beverages Limited is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world (outside USA). The Company produces and distributes a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo. PepsiCo CSD brands produced and sold by VBL include Pepsi, Pepsi Zero, Mountain Dew, Sting, Seven-Up, Mirinda, Seven-Up Nimbooz Masala Soda and Evervess. PepsiCo NCB brands produced and sold by the Company include Slice, Tropicana Juices (100% and Delight), Seven-Up Nimbooz, Gatorade as well as packaged drinking water under the brand Aquafina.
