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Varun Beverages Ltd.
(VBL)
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Rating:60Neutral
Price Target:
₹413.00
▼(-0.24% 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
Revenue and earnings growth
Sustained revenue expansion alongside rising net income indicates continued demand for VBL’s beverage portfolio and effective execution across its bottling and distribution model. This growth can support reinvestment in capacity, distribution reach, and product development over the next several quarters.
Negative Factors
Margin volatility
The decline in gross margin indicates that profitability remains sensitive to higher input costs and/or pricing pressure. If this pattern persists, revenue growth may translate less efficiently into earnings, limiting operating leverage and making future profit expansion more dependent on volume growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and earnings growth
Sustained revenue expansion alongside rising net income indicates continued demand for VBL’s beverage portfolio and effective execution across its bottling and distribution model. This growth can support reinvestment in capacity, distribution reach, and product development over the next several quarters.
Read all positive factors
Varun Beverages Ltd. (VBL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.42T
Dividend Yield0.36%
Average Volume (3M)357.25K
Price to Earnings (P/E)41.6
Beta (1Y)1.09
Revenue Growth14.46%
EPS Growth17.79%
CountryIN
Employees10,654
SectorGeneral
Sector StrengthN/A
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)10.01
Shares Outstanding3,382,494,600
10 Day Avg. Volume380,983
30 Day Avg. Volume357,247
Financial Highlights & Ratios
PEG Ratio4.16
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 Upside28.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)10.15
Revenue Forecast (FY)₹256.76B
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 makes money primarily by producing, packaging, and selling non-alcoholic ready-to-drink beverages through a bottling and distribution model, largely linked to PepsiCo-branded products. Its key revenue streams include: (1) Sale of finished beve...
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 | 60.45B | 54.02B | 49.15B | 37.84B | 29.05B | 16.86B |
| 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. Technical Analysis
Negative
414.00
Price Trends
423.56
Negative
453.58
Negative
460.09
Negative
Market Momentum
-5.15
Positive
47.61
Neutral
34.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VBL, the sentiment is Negative. The current price of 414 is below the 20-day moving average (MA) of 426.62, below the 50-day MA of 423.56, and below the 200-day MA of 460.09, indicating a bearish trend. The MACD of -5.15 indicates Positive momentum. The RSI at 47.61 is Neutral, neither overbought nor oversold. The STOCH value of 34.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VBL.
Varun Beverages Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ₹4.28T | 28.56 | ― | 2.25% | 3.83% | 38.55% | |
67 Neutral | ₹3.26T | 16.41 | ― | 5.58% | -4.13% | -43.21% | |
65 Neutral | ₹638.62B | 32.18 | ― | 2.29% | 7.40% | 10.63% | |
64 Neutral | ₹2.27T | 55.82 | ― | 1.01% | 21.68% | 38.17% | |
64 Neutral | ₹988.71B | 58.21 | ― | 1.00% | 14.68% | 24.77% | |
60 Neutral | ₹1.42T | 41.56 | ― | 0.36% | 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.
418.60
-33.75
-7.46%
IN:DABUR
Dabur India Limited
360.00
-133.70
-27.08%
IN:HINDUNILVR
Hindustan Unilever Limited
1,820.00
-596.90
-24.70%
IN:ITC
ITC Limited
260.00
-138.52
-34.76%
IN:NESTLEIND
Nestle India Ltd.
1,176.00
-82.13
-6.53%
IN:TATACONSUM
Tata Consumer Products Limited
999.00
-159.56
-13.77%
Varun Beverages Ltd. Corporate Events
Varun Beverages’ Kenyan Unit Launches New Drinks to Boost Market Growth
Sep 14, 2026
VBL Industries (Kenya) Limited has expanded its Kenyan product portfolio with the launch of BOLT UP, an energy drink aimed at young, active consumers, and XTREME FIZZ, a carbonated soft drink with a youthful positioning. The move is part of a broa...
Varun Beverages to Engage Investors at Motilal Oswal Global Conference
Aug 10, 2026
Varun Beverages Ltd., a major beverage bottler and distributor and a key PepsiCo franchisee in India and certain overseas markets, continues to deepen its engagement with the investment community as part of its broader capital markets strategy. Th...
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.