Varun Beverages Ltd logo

Varun Beverages Ltd

VBL NSE

Varun Beverages Ltd has been associated with PepsiCo since the 1990s and is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world. The company produces and distributes a wide range of carbonated soft drinks, non-carbonated drinks and packaged water sold under trademarks owned by PepsiCo. PepsiCo brands produced and sold by the company include Pepsi, Seven-up, Mirinda Orange, Mountain Dew, Tropicana Juices and many more. [1]

AI Verdict: BUY Confidence: 7%

Varun Beverages remains a high-conviction growth compounder with 50% profit CAGR over 5 years and 88% analyst buy ratings. However, at 55.8x PE and 9.14x PB, valuations are stretched, warranting a cautious accumulation strategy rather than aggressive deployment.

Key Fundamentals

LargecapNon Alcoholic BeveragesBeverages
Market Cap
1.7L Cr
Volatility
Moderate
P/E Ratio
54.01
EBITDA
₹5,402 Cr
Return on Equity
29.67%
Debt to Equity
0.15
Book Value
₹57.89
EPS
₹18.65
52W High
₹555.8
52W Low
₹381

Technical Indicators

Key Insights

Strengths

2
  • Company has delivered good profit growth of 50.2% CAGR over last 5 years
  • Company's median sales growth is 23.2% of last 10 years

Weaknesses

2
  • Stock is trading at 8.75 times its book value
  • Promoter holding has decreased over last 3 years: -4.45%

Growth Rate

Revenue Growth
9.48% ↘
Net Income Growth
16.24% ↘
Cash Flow Change
3.79% ↗
ROE
-1.46% ↘
ROCE
-6.76% ↘
EBITDA Margin (Avg.)
2.08% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 2d ago
BUY
Risk medium

Varun Beverages remains a high-conviction growth compounder with 50% profit CAGR over 5 years and 88% analyst buy ratings. However, at 55.8x PE and 9.14x PB, valuations are stretched, warranting a cautious accumulation strategy rather than aggressive deployment.

Bull Case 8
  • Exceptional 5-year compounded profit growth of 50% CAGR, significantly outpacing the FMCG sector average
  • Overwhelming analyst consensus with 88% buy ratings (22 out of 25 analysts recommend buy)
  • Consistent long-term ROE averaging 21-22% over 5 and 10 year periods, indicating efficient capital deployment
  • Robust 10-year median sales growth of 23.2%, demonstrating sustained demand and distribution expansion
  • 5-year compounded sales CAGR of 27% reflecting strong volume growth and geographic expansion as PepsiCo's largest bottler outside the US
  • Stock has delivered 39% CAGR over 5 years, rewarding long-term shareholders handsomely
  • Market cap of Rs 1,75,412 crore provides large-cap stability with mid-cap growth characteristics
  • TTM profit growth of 14% continues to outpace TTM sales growth of 7%, indicating margin expansion and operating leverage
Bear Case 8
  • Elevated PE of 55.8x leaves little margin of safety and prices in multi-year forward growth
  • Trading at 9.14x book value, significantly premium to FMCG peers, increasing downside risk in a correction
  • Promoter holding has declined by 4.45% over last 3 years, signaling potential dilution or profit-booking by insiders
  • TTM sales growth has decelerated sharply to 7% versus the 5-year CAGR of 27%, suggesting growth normalization
  • Negligible dividend yield of 0.09% offers virtually no downside protection or income cushion
  • Last year ROE dropped to 16% from the 5-year average of 22%, a 600 bps deterioration that needs monitoring
  • 3-year stock CAGR of 20% has moderated from the 5-year CAGR of 39%, indicating decelerating price momentum
  • Zero analyst sell ratings may indicate consensus crowding risk where any earnings miss could trigger sharp re-rating

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 2d ago
Positives 1
  • Calpis launch with Asahi partnership Jun 18

    Varun Beverages partnered with Japan's Asahi Group to launch Calpis, a dairy-based beverage, in India starting H2 2026. This diversifies VBL's portfolio beyond carbonated drinks into the functional dairy segment.

Neutral 3
  • Institutional block trades ~₹67 Cr Jun 19

    Two block trades on NSE — ₹29.76 Cr (5.6 lakh shares at ₹531.30) on Jun 19 and ₹37.49 Cr (7.08 lakh shares at ₹529.50) on Jun 8 — suggest institutional portfolio rebalancing with minimal price impact.

  • Promoters declare no share encumbrance Jun 20

    Promoters disclosed zero encumbrance of shares for FY ended Dec 31, 2025 under SEBI Takeover Regulations, signaling clean promoter holding structure.

  • Investor meetings with top brokerages May 26

    VBL scheduled investor meetings in Mumbai on Jun 3-4, 2026 hosted by BofA, Morgan Stanley, and Citi. No unpublished price-sensitive information to be shared.

TL;DR: VBL's recent newsflow is largely routine with no material headwinds emerging. The Asahi-Calpis partnership is a meaningful positive, expanding the product portfolio into dairy-based beverages from H2 2026. Block trades around ₹529-531 levels indicate institutional activity without notable price dislocation. The trend is stable with a mild positive tilt on portfolio diversification.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
3,893
5,611
3,871
2,668
4,317
7,197
4,805
3,689
5,567
7,017
4,897
4,204
6,574
Expenses
3,095
4,101
2,989
2,249
3,329
5,206
3,654
3,110
4,304
5,020
3,751
3,568
5,049
Operating Profit
798
1,511
882
418
989
1,991
1,151
579
1,263
1,998
1,146
637
1,525
OPM %
20%
27%
23%
16%
23%
28%
24%
16%
23%
28%
23%
15%
23%
Other Income
10
42
19
9
8
44
24
45
28
77
148
99
44
Interest
63
69
62
74
94
129
119
109
41
37
45
47
49
Depreciation
172
172
171
166
188
242
257
261
273
306
308
330
357
PBT
573
1,311
667
188
716
1,663
800
254
978
1,732
941
359
1,163
Tax %
24%
23%
23%
24%
23%
24%
21%
23%
25%
23%
21%
28%
24%
Net Profit
439
1,005
514
144
548
1,262
629
196
731
1,325
745
260
879
EPS in Rs
1.32
3.06
1.54
0.41
1.65
3.86
1.91
0.55
2.15
3.89
2.19
0.74
2.58
Figures in ₹ Crores

Profit & Loss

  Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025TTM
Sales
2,502
3,394
3,861
4,004
5,105
7,130
6,450
8,823
13,173
16,043
20,008
21,685
22,693
Expenses
2,116
2,752
3,052
3,165
4,069
5,667
5,235
7,129
10,310
12,326
15,193
16,616
17,388
Operating Profit
387
642
810
838
1,036
1,462
1,215
1,694
2,863
3,717
4,815
5,070
5,305
OPM %
15%
19%
21%
21%
20%
21%
19%
19%
22%
23%
24%
23%
23%
Other Income
14
36
27
14
6
47
-30
51
-18
-5
48
352
368
Interest
187
170
435
215
223
324
294
207
204
292
483
196
177
Depreciation
210
317
322
347
385
489
529
531
617
681
947
1,216
1,301
PBT
4
191
79
291
434
696
363
1,007
2,024
2,739
3,433
4,010
4,195
Tax %
658%
41%
39%
26%
31%
32%
1%
26%
23%
23%
23%
24%
—
Net Profit
-20
113
48
214
300
472
357
746
1,550
2,102
2,634
3,062
3,209
EPS in Rs
-0.09
0.5
0.14
0.68
0.95
1.44
1.01
2.14
4.61
6.33
7.67
8.98
9.4
Div. Payout %
0%
0%
0%
22%
16%
15%
22%
16%
15%
16%
13%
17%
—
Figures in ₹ Crores

Balance Sheet

  Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Equity Capital
134
134
182
183
183
289
289
433
650
650
676
676
Reserves
9
91
1,511
1,587
1,816
3,040
3,235
3,647
4,453
6,287
15,934
18,902
Borrowings
2,615
2,527
2,215
2,654
2,808
3,417
3,216
3,387
3,884
5,431
2,826
2,508
Other Liabilities
533
1,680
915
852
1,192
1,630
1,707
2,113
2,632
2,819
3,688
3,454
Total Liabilities
3,292
4,431
4,824
5,276
5,998
8,376
8,447
9,579
11,618
15,187
23,124
25,541
Fixed Assets
2,355
3,496
3,716
3,981
4,387
6,479
6,409
6,311
6,932
8,409
13,402
16,759
CWIP
25
38
96
145
352
64
67
497
607
1,922
1,167
271
Investments
304
3
7
8
11
0
0
0
0
21
60
174
Other Assets
608
894
1,006
1,141
1,247
1,833
1,972
2,772
4,079
4,835
8,496
8,337
Total Assets
3,292
4,431
4,824
5,276
5,998
8,376
8,447
9,579
11,618
15,187
23,124
25,541
Figures in ₹ Crores

Cash Flow

  Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Operating
431
555
826
620
1,000
1,308
1,012
1,231
1,790
2,391
3,381
3,509
Investing
-500
-300
-1,048
-746
-937
-2,320
-472
-1,008
-1,769
-3,288
-4,311
-2,725
Financing
58
-236
230
159
-84
1,107
-574
-178
-18
985
2,954
-1,266
Net Cash Flow
-11
19
8
32
-22
95
-33
46
4
88
2,024
-482
Free Cash Flow
211
290
45
103
191
575
476
416
40
-803
-359
797
CFO/OP
114
94
109
81
104
98
90
80
76
82
85
87
Figures in ₹ Crores

Ratios

  Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Debtor Days
14
11
12
14
9
9
14
9
8
8
15
21
Inventory Days
77
90
103
88
94
100
123
131
116
106
114
111
Days Payable
48
39
58
38
52
54
68
64
48
37
64
53
Cash Conversion Cycle
43
62
58
64
52
55
69
76
76
77
66
79
Working Capital Days
-99
-73
-89
-65
-50
-37
-47
-34
-24
-9
16
31
ROCE %
7%
12%
16%
12%
15%
18%
11%
17%
27%
29%
25%
20%

Shareholding Pattern

As of Mar 2026
Promoters 59.44%
FIIs 19.51%
DIIs 14.40%
Public 5.22%
Others 1.44%
Total 100.01%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Nov 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
66.40%
65.82%
64.89%
64.89%
64.89%
63.90%
63.90%
63.90%
63.90%
63.62%
63.10%
63.09%
62.91%
62.66%
62.66%
60.20%
60.20%
60.24%
59.82%
59.44%
59.44%
59.44%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.01%
0.01%
26.58%
25.78%
25.32%
24.18%
25.24%
25.26%
22.98%
21.85%
21.93%
20.31%
19.51%
DIIs
5.54%
5.56%
6.48%
6.70%
6.72%
4.97%
4.16%
3.44%
3.68%
2.94%
3.36%
3.59%
4.15%
4.55%
4.98%
6.49%
7.02%
9.21%
10.52%
11.79%
13.56%
14.40%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
3.65%
4.02%
3.57%
3.80%
4.02%
4.19%
4.09%
4.09%
4.22%
4.52%
4.27%
4.71%
5.00%
5.16%
5.87%
5.85%
5.52%
5.81%
6.27%
5.42%
5.20%
5.22%
Others
24.41%
24.61%
25.06%
24.61%
24.37%
26.94%
27.85%
28.56%
28.19%
28.92%
29.26%
2.04%
2.15%
2.31%
2.31%
2.21%
2.00%
1.77%
1.52%
1.42%
1.50%
1.44%
No. of Shareholders
56,213
1,08,875
1,15,450
1,37,939
1,37,208
1,73,935
2,35,804
2,44,975
2,61,286
3,53,742
3,75,534
4,40,278
4,89,887
5,09,607
6,98,759
7,72,415
7,42,488
8,73,915
9,68,419
9,02,881
8,72,933
8,77,604

Documents

Frequently Asked Questions about Varun Beverages Ltd

What does Varun Beverages Ltd do?
Varun Beverages Ltd has been associated with PepsiCo since the 1990s and is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world. The company produces and distributes a wide range of carbonated soft drinks, non-carbonated drinks and packaged water sold under...
Where is Varun Beverages Ltd (VBL) listed?
Varun Beverages Ltd is listed on the Indian stock exchanges. It is listed on NSE: VBL and BSE: 540180. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Varun Beverages Ltd belong to?
Varun Beverages Ltd operates in the Fast Moving Consumer Goods sector within the Beverages industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Varun Beverages Ltd?
Varun Beverages Ltd has a market capitalisation of approximately ₹172841.93 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Varun Beverages Ltd?
The Price-to-Earnings (PE) ratio of Varun Beverages Ltd is 54.01. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Varun Beverages Ltd?
Over the past 52 weeks, Varun Beverages Ltd has traded between a low of ₹381 and a high of ₹555.8. This range helps investors understand the stock's price volatility and recent trading levels.
Does Varun Beverages Ltd pay dividends?
Yes, Varun Beverages Ltd has a dividend yield of 0.10%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Varun Beverages Ltd?
Varun Beverages Ltd has a Return on Equity (ROE) of 29.67%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Varun Beverages Ltd on Tapetide?
On Tapetide, you can view Varun Beverages Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Varun Beverages Ltd has been associated with PepsiCo since the 1990s and is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world. The company produces and distributes a wide range of carbonated soft drinks, non-carbonated drinks and packaged water sold under trademarks owned by PepsiCo. PepsiCo brands produced and sold by the company include Pepsi, Seven-up, Mirinda Orange, Mountain Dew, Tropicana Juices and many more. [1]

Website varunbeverages.com
CEO Mr. Varun Ravi Kant Jaipuria
Employees 11,041
Listed 2016-11-08
Face Value ₹ 2
Issued Size 3,38,19,88,769

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