Varun Beverages, one of PepsiCo’s largest global franchisees outside the USA, has seen a significant shift in its stock performance in 2025. The company’s shares, which have enjoyed an eight-year winning streak since their listing in October 2016, are now facing their first annual decline.
Market Performance
The stock started 2025 on a weak note, dropping 32% in the first two months. A rebound came in March, with a sharp 24% surge, recovering most of the early losses. However, the recovery was short-lived, and the stock fell back into negative territory in the following months.
- Current 2025 performance: Down 26%, trading at ₹471 per share
- Despite intermittent gains, the stock has yet to regain its early-year highs
This marks a potential end to Varun Beverages’ eight-year streak of annual positive returns. Since listing, the company delivered steady yearly growth:
2017 | 72% |
2018 | 20% |
2019 | 35.5% |
2020 | 30% |
2021 | 45.33% |
2022 | 123% |
2023 | 87% |
2024 | 29% |
2025 | -26% so far |
Company Developments
Varun Beverages has been active in expanding its business beyond traditional soft drinks. Key strategic moves include:
- Entering the alcoholic beverage segment through a partnership with Carlsberg Breweries in African markets
- Continuing capacity additions, although the 9MCY25 performance remained subdued due to an early and prolonged monsoon
The company has also focused on shareholder returns through corporate actions:
- Issued three bonus shares since July 2019
- Last bonus: 1:2 ratio, ex-date 6 June 2022
- Conducted two share splits, most recently from ₹5 to ₹2 in 2024, with trading on an ex-split basis since 12 September 2024
Summary
2025 has been a challenging year for Varun Beverages shares. The combination of adverse monsoons, intensifying competition, and higher operating costs has impacted performance, bringing the stock into negative territory for the first time since listing.
By entering new beverage categories and ramping up capacity, the company is building a foundation for sustained growth, drawing attention from investors and market watchers alike.
Easy & quick
Leave A Comment?