Varun Beverages Ltd. (IN:VBL)
:VBL
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Varun Beverages Ltd.
(VBL)
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Rating:60Neutral
Price Target:
₹536.00
▲(5.13% Upside)
Action:DowngradedDate:02/05/26
The score is supported by strong fundamental growth and improved leverage, but is held back by weak technicals (downtrend with bearish momentum) and a rich valuation (high P/E and low yield).
Positive Factors
Strong PepsiCo franchise
Long-term franchise rights to PepsiCo brands provide durable demand, brand equity, and a steady product pipeline. This reduces VBL's marketing burden, supports pricing leverage in channels, and anchors scale investments across territories for multi-year volume growth and predictability.
Negative Factors
Weak free cash flow conversion
Low FCF relative to net income and recent negative FCF reflect sustained capex and working-capital needs. This constrains capacity to self-fund expansion, dividends, or faster debt reduction and raises reliance on external financing during growth phases, a medium-term cash-risk factor.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong PepsiCo franchise
Long-term franchise rights to PepsiCo brands provide durable demand, brand equity, and a steady product pipeline. This reduces VBL's marketing burden, supports pricing leverage in channels, and anchors scale investments across territories for multi-year volume growth and predictability.
Read all positive factors
Varun Beverages Ltd. (VBL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.72T
Dividend Yield0.31%
Average Volume (3M)496.51K
Price to Earnings (P/E)37.2
Beta (1Y)1.25
Revenue Growth6.75%
EPS Growth11.21%
CountryIN
Employees11,041
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)6.78
Shares Outstanding3,382,296,100
10 Day Avg. Volume186,454
30 Day Avg. Volume496,512
Financial Highlights & Ratios
PEG Ratio4.21
Price to Book (P/B)8.46
Price to Sales (P/S)7.64
P/FCF Ratio233.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹557.50Price Target Upside9.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)10.43
Revenue Forecast (FY)₹256.83B
Varun Beverages Ltd. Business Overview & Revenue Model
Company Description
Varun Beverages Limited, together with its subsidiaries, operates as the franchisee of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs) sold under trademarks owned by PepsiCo. The company manufactures, bottles, distributes, and se...
How the Company Makes Money
VBL primarily makes money by producing and selling finished, packaged beverages under PepsiCo-owned brands in the territories where it holds franchise rights. Its core revenue stream is the sale of beverages (in multiple pack sizes and formats suc...
Varun Beverages Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 216.85B | 200.08B | 160.43B | 131.73B | 88.23B |
| Gross Profit | 85.53B | 111.03B | 86.38B | 69.12B | 47.89B |
| EBITDA | 54.02B | 48.31B | 37.47B | 28.27B | 16.62B |
| Net Income | 30.36B | 25.95B | 20.56B | 14.97B | 6.94B |
Balance Sheet | |||||
| Total Assets | 255.65B | 231.44B | 151.87B | 116.18B | 95.82B |
| Cash, Cash Equivalents and Short-Term Investments | 19.98B | 24.50B | 4.57B | 2.85B | 1.51B |
| Total Debt | 29.08B | 28.26B | 54.31B | 38.84B | 33.87B |
| Total Liabilities | 58.24B | 64.04B | 81.03B | 64.03B | 53.85B |
| Stockholders Equity | 195.79B | 166.10B | 69.36B | 51.02B | 40.80B |
Cash Flow | |||||
| Free Cash Flow | 7.08B | -3.98B | -8.73B | -109.63M | 2.89B |
| Operating Cash Flow | 34.48B | 33.81B | 23.91B | 17.90B | 12.31B |
| Investing Cash Flow | -27.81B | -43.17B | -32.90B | -17.05B | -10.11B |
| Financing Cash Flow | -11.59B | 29.54B | 9.85B | -179.42M | -1.78B |
Varun Beverages Ltd. Technical Analysis
Positive
509.85
Price Trends
432.44
Positive
455.57
Positive
464.64
Positive
Market Momentum
6.56
Negative
70.36
Negative
94.84
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VBL, the sentiment is Positive. The current price of 509.85 is above the 20-day moving average (MA) of 413.13, above the 50-day MA of 432.44, and above the 200-day MA of 464.64, indicating a bullish trend. The MACD of 6.56 indicates Negative momentum. The RSI at 70.36 is Negative, neither overbought nor oversold. The STOCH value of 94.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:VBL.
Varun Beverages Ltd. Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹2.86T | 50.90 | ― | 0.97% | 14.62% | 9.14% | |
75 Outperform | ₹864.85B | 38.40 | ― | 1.62% | 5.01% | 7.14% | |
71 Outperform | ₹1.16T | 76.67 | ― | 0.70% | 14.93% | 25.10% | |
69 Neutral | ₹1.08T | 54.03 | ― | 1.42% | 25.67% | 8.14% | |
65 Neutral | ₹1.33T | 51.56 | ― | 1.24% | 6.74% | 16.28% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | ₹1.72T | 37.23 | ― | 0.31% | 6.75% | 11.21% |
* Consumer Defensive Sector Average
IN:VBL
Varun Beverages Ltd.
509.05
14.32
2.89%
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6.36%
Varun Beverages Ltd. Corporate Events
Varun Beverages Publishes Investor Call Audio After Q1 CY2026 Results
Apr 27, 2026
Varun Beverages Ltd., a major beverage bottler and distributor for global soft drink brands, operates an extensive manufacturing and distribution network across India and several international markets. Its portfolio spans carbonated soft drinks, j...
Varun Beverages Posts Strong Q1 2026 Earnings, Announces Interim Dividend
Apr 27, 2026
Varun Beverages reported unaudited consolidated financial results for the quarter ended 31 March 2026, posting revenue from operations of ₹67,215.37 million and net profit after tax of ₹8,787.13 million, with auditors issuing an unmodi...
Varun Beverages Releases Q1 CY2026 Unaudited Results Presentation
Apr 27, 2026
Varun Beverages Ltd. has notified stock exchanges that it has released a presentation on its unaudited standalone and consolidated financial results for the quarter ended March 31, 2026. The results presentation, covering the company’s Q1 CY...
Varun Beverages Delivers Double-Digit Revenue and Profit Growth in Q1 2026
Apr 27, 2026
Varun Beverages reported strong first-quarter results for the period ended March 31, 2026, with revenue from operations rising 18.1% year-on-year to Rs. 65,741.9 million on the back of a 16.3% increase in consolidated sales volumes to 363.4 millio...
Varun Beverages Declares Interim Dividend and Approves Q1 2026 Results
Apr 27, 2026
Varun Beverages Ltd.’s board has approved the unaudited standalone and consolidated financial results for the quarter ended 31 March 2026, supported by an unmodified limited review report from its joint statutory auditors. The company contin...
Varun Beverages Publishes Q1 CY2026 Unaudited Results Presentation
Apr 27, 2026
Varun Beverages Ltd. announced that it has released an investor presentation detailing its unaudited financial results for the quarter ended March 31, 2026, in line with disclosure requirements under SEBI’s Listing Regulations. The presentat...
Varun Beverages Schedules Q1 CY 2026 Earnings Call for Investors and Analysts
Apr 21, 2026
Varun Beverages Ltd., a major beverages manufacturer and bottler, is preparing to discuss its performance and developments for the first quarter ended March 31, 2026 with the financial community. Senior management will lead an earnings conference ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.