2nd Interim Dividend Alert By VBL Shares! Varun Beverages Fixes Record Date – Is It Time To Position?

Market observers gave Varun Beverages' shares a lot of impetus on Tuesday, as the stock price completed at Rs 513.90 per share, up 5.58% on the NSE. The company's announcement of the financial results for the quarter and a half that ended (Q2 & H1 CY2025) on June 30, 2025, as well as the setting of the record date for the second interim dividend for FY25, caused the stock price to spike.

Varun Beverages Dividend

"The payment of 2nd interim dividend of Rs 0.50 (Fifty Paisa only) per Equity Share for the Financial Year 2025 on the total issued, subscribed and paid-up 3,38,19,16,894 Equity Shares of the nominal value of Rs 2/- each. Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, fixed August 2, 2025 as "Record Date" for the purpose of determining entitlement of Equity Shareholders for receipt of 2nd interim dividend. The interim dividend will be paid on and from August 5, 2025 to those shareholders whose name appears in the Register of Members of the Company or in the list of beneficial owners maintained by the Depositories as on August 2, 2025," said Varun Beverages in a stock exchange filing on Tuesday.

Varun Beverages Q2FY25 Results

The firm reported that, compared to the same time previous year, its net profit climbed by 5% to Rs 1,317 crore from Rs 1,253 crore. Compared to Q2 CY2024, when there were 401.6 million cases, the quarter's consolidated sales volume decreased by 3% to 389.7 million. At Rs 7,017.4 crore, revenue for the quarter climbed 2.5% over the same period last year. At Rs 1,999.6 crore, Varun Beverages' earnings before interest, tax, depreciation, and amortization (EBITDA) were steady.

"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," said Varun Beverages in a statement.

Mr. Ravi Jaipuria, Chairman, Varun Beverages Limited, said, "We continue to focus on growth opportunities in South Africa market. We have enhanced capacity by setting up a can line in Durban, one of our existing production facilities. We are awaiting approval from Competition Commission of South Africa for land parcel purchase adjoining to our production facility in Boksburg to further enhance capacity & backward integration. These are few starting steps in our series of initiatives. Strong currency and our efforts in implementing backward integration last year have resulted in enhanced profitability in all our African territories. We have further strengthened Zambia, DRC and South Africa subsidiary balance sheets and through in-process equity infusion raising our stake in Zambia from 90% to 95%."

"Although unseasonal rains have impacted performance during the quarter, we have successfully navigated such challenges in the past and emerged stronger. We continue to strengthen our on-ground execution by adding more visi-coolers and ensuring wider product availability across retail touchpoints. With robust capacities now operational, an expanding product portfolio, and a sharply focused distribution network, we are well-positioned to capture emerging opportunities and drive sustainable, long-term value creation for all stakeholders," Mr. Ravi Jaipuria further added.

Varun Beverages Target Price

"Varun Beverages (CMP ₹504) is currently consolidating above a strong support level at ₹495, indicating buying interest near this zone. The stock needs to sustain above ₹500 to maintain its short-term stability. Immediate resistance is seen at ₹515, and a breakout above this level could trigger a move toward ₹540-₹550. Momentum indicators like RSI are neutral but showing signs of improvement, suggesting weakening selling pressure. On the downside, a close below ₹495 may invite further decline toward ₹480. Traders may consider accumulating near current levels with a stop-loss below ₹495, targeting a short-term rebound toward ₹540," commented Riyank Arora, technical analyst at Mehta Equities.

Disclaimer

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