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Varun Beverages Ltd.
(VBL)
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Rating:60Neutral
Price Target:
₹452.00
▼(-1.16% Downside)
Action:Reiterated
Date:07/29/26
The score is anchored by strong financial performance (growth, profitability, and a de-risked balance sheet), but is materially pulled down by weak technical positioning (below all major moving averages) and a demanding valuation (high P/E with low dividend yield).
Positive Factors
Franchise relationship with PepsiCo
Long-term PepsiCo franchise rights give VBL durable brand access, new product pipeline and national marketing support. This lowers brand-building risk, ensures consistent SKU introductions and supports stable demand and distribution economics across its territories.
Negative Factors
Margin volatility and gross margin step-down
A meaningful decline in gross margin signals exposure to input-cost inflation, pricing pressure or mix shifts that can compress long-term earnings power. Persistent margin volatility undermines earnings predictability and can limit free cash flow available for investment or returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Franchise relationship with PepsiCo
Long-term PepsiCo franchise rights give VBL durable brand access, new product pipeline and national marketing support. This lowers brand-building risk, ensures consistent SKU introductions and supports stable demand and distribution economics across its territories.
Read all positive factors
Varun Beverages Ltd. (VBL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.50T
Dividend Yield0.34%
Average Volume (3M)496.51K
Price to Earnings (P/E)44.2
Beta (1Y)1.12
Revenue Growth14.46%
EPS Growth17.79%
CountryIN
Employees10,654
SectorGeneral
Sector StrengthN/A
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)10.01
Shares Outstanding3,382,464,800
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
₹530.00Price Target Upside15.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)10.17
Revenue Forecast (FY)₹257.04B
Varun Beverages Ltd. Business Overview & Revenue Model
Company Description
Varun Beverages Limited (VBL) and its subsidiaries serve as a prominent franchisee for PepsiCo, overseeing the manufacturing, bottling, distribution, and sales of both carbonated and non-carbonated beverages under PepsiCo's diverse brand portfolio...
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 | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 241.26B | 216.85B | 200.08B | 160.43B | 131.73B | 88.23B |
| Gross Profit | 106.26B | 85.53B | 111.03B | 86.38B | 69.12B | 47.89B |
| EBITDA | 60.43B | 54.02B | 48.31B | 37.47B | 28.27B | 16.62B |
| Net Income | 33.86B | 30.36B | 25.95B | 20.56B | 14.97B | 6.94B |
Balance Sheet | ||||||
| Total Assets | 302.11B | 255.65B | 231.44B | 151.87B | 116.18B | 95.82B |
| Cash, Cash Equivalents and Short-Term Investments | 42.51B | 19.98B | 24.50B | 4.57B | 2.85B | 1.51B |
| Total Debt | 34.84B | 25.08B | 28.26B | 54.31B | 38.84B | 33.87B |
| Total Liabilities | 82.58B | 58.24B | 64.04B | 81.03B | 64.03B | 53.85B |
| Stockholders Equity | 217.71B | 195.79B | 166.10B | 69.36B | 51.02B | 40.80B |
Cash Flow | ||||||
| Free Cash Flow | -1.67B | 7.08B | -3.98B | -8.73B | -109.63M | 2.89B |
| Operating Cash Flow | 9.44B | 34.48B | 33.81B | 23.91B | 17.90B | 12.31B |
| Investing Cash Flow | -11.19B | -27.81B | -43.17B | -32.90B | -17.05B | -10.11B |
| Financing Cash Flow | -245.17M | -11.59B | 29.54B | 9.85B | -179.42M | -1.78B |
Varun Beverages Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ₹747.72B | 37.90 | ― | 1.95% | 7.40% | 10.63% | |
75 Outperform | ₹3.52T | 17.74 | ― | 5.11% | -4.13% | -43.21% | |
74 Outperform | ₹2.91T | 76.40 | ― | 0.97% | 19.30% | 22.64% | |
69 Neutral | ₹4.94T | 33.01 | ― | 1.91% | 3.83% | 38.55% | |
66 Neutral | ₹1.07T | 65.52 | ― | 0.92% | 15.60% | 22.76% | |
60 Neutral | ₹1.50T | 44.19 | ― | 0.32% | 14.46% | 17.79% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:VBL
Varun Beverages Ltd.
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-11.63%
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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.