NSE:VBL · Risk Score Report

NSE:VBLNSEConsumer Defensive

Varun Beverages Limited

📊 Beverages - Non-Alcoholic

Day ₹520

₹535 Neutral

52W ₹381

₹544 Overbought

₹530.00

▲ ₹11.45 (+2.21%)

Vol: 4,429,861 · Avg: 7,215,292

As of April 29, 2026 · 06:35 IST

COMPOSITE RISK SCORE

VAL:9/25 · FIN:18/25 · GRO:20/25 · TECH:18/25

📈 P/E RATIO

56.4x

Trailing

📖 P/B RATIO

9.2x

Price to Book

💰 EPS

₹9.39

TTM

🏛 MARKET CAP

₹179,251Cr

Large Cap

📊 ROE

15.5%

Return on Equity

📈 REV GROWTH

18.1%

YoY

🏢 Company Analysis · Varun Beverages Limited

💼 BUSINESS MODEL

Varun Beverages Limited, together with its subsidiaries, manufactures, bottles, sells, and distributes beverages under the PepsiCo brands in India, Sri Lanka, Nepal, Zambia, Morocco, Zimbabwe, the Democratic Republic of Congo, Mozambique, South Africa, Lesotho, Eswatini, Namibia, and Botswana..
The company offers carbonated soft drinks under the Pepsi, Pepsi Zero, Mountain Dew, Mirinda, and Seven-Up brands, as well as the Refreshhh, Coo-ee, and Jive brands; fruit pulp and juice-based drinks under the Slice, Tropicana, Tropicana Delight, and Seven-Up Nimbooz brands; club sodas under the Evervess and Duke's brands; and energy drinks under the Sting, Adrenaline Rush, and Rockstar brands..
It also provides sports drinks under the Gatorade brand; carbonated juice-based drinks under the Seven-Up Nimbooz Masala Soda brand; ice-tea under the Lipton brand; packaged drinking water under the Aquafina and Aquavess brands, as well as the Refreshhh and Aquaclear brands; and snacks under the FritoLay, Cheetos, Doritos, Simba, and Kurkure brands..
In addition, the company offers energy drinks under the Reboost Energy brand; and value-added dairy-based beverages under the Cream Bell brand..
Operates in Beverages - Non-Alcoholic within the Consumer Defensive sector.
Workforce of 10,654 employees.

🏰 MOAT & COMPETITION

Mega-cap (₹179,251 Cr) — dominant market position with significant scale advantages.
Profit margin of 14.0% — moderate pricing power.
Key competitors: Orient Beverages, Varun Beverages, Transglobe Foods, Valencia Nutrit..

🚀 CATALYSTS

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
Varun Beverages lines up another acquisition in South Africa (Just Food)
Revenue growing at 18% — strong top-line momentum.

⚖️ ASYMMETRY CHECK

Analyst target range: ₹422 — ₹657 (mean ₹581, 26 analysts).
Moderate asymmetry — upside +24% vs downside -20% (1.2x).
P/E of 56.4x — premium valuation, growth must sustain to avoid de-rating risk.

🔭 FUTURE OUTLOOK

Analyst consensus: Strong Buy (26 analysts).
Latest quarter earnings grew 20% YoY — positive trajectory.

✅ PROS

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

❌ CONS

Stock is trading at 9.21 times its book value
Promoter holding has decreased over last 3 years: -4.45%

VALUATION

9/25

25% WEIGHT

P/E at 56x
P/B at 9.2x
Analyst target: ₹581 (+9.7%)
1Y return: +0.5%

FINANCIAL HEALTH

18/25

25% WEIGHT

ROE: 15.5%
Profit margin: 14.0%
Revenue growth: 18.1%
Debt/Equity: 13%

GROWTH

20/25

25% WEIGHT

Revenue growth: 18.1%
Earnings growth: 20.0%
Beta: -0.01
Sector: Consumer Defensive

TECHNICAL

18/25

25% WEIGHT

RSI, MACD, MA crossovers
200 DMA & 50 EMA position
Volume trend analysis
Price momentum signals

📈 Price Movement

🕯 Candlestick Chart

🎯 Price Prediction · Analyst Target Cone Source: Yahoo Finance Analyst Targets ↗

📉 Valuation Trends (at current CMP)

P/E Ratio at current CMP

💎 Valuation & Financial Metrics

P/E RATIO

56.4x

Trailing twelve months

P/B RATIO

9.2x

Price to Book value

ROE

15.5%

Return on Equity

PROFIT MARGIN

14.0%

Net profit margin

OPM

18.5%

Operating profit margin

ANALYST TARGET

₹581

Range: ₹422 - ₹657

Yahoo Finance ↗

PEG RATIO

2.35

Price/Earnings to Growth

EV/EBITDA

34.0x

Enterprise value ratio

CURRENT RATIO

N/A

Liquidity measure

DIVIDEND YIELD

0.39%

Annual yield

ROA

12.6%

Return on Assets

GROSS MARGIN

55.4%

Gross profit margin

INDUSTRY AVERAGES — OTHER BEVERAGES

P/E 38.0x (above avg)

P/B 8.0x (sector fair)

ROCE 12.5% (above avg)

ROE 25% (sector good)

OPM 20% (sector good)

Div Yield 0.29%

D/E <30 (sector comfort)

📋 Quarterly Performance Trend

Quarter	Revenue	QoQ %	Net Profit	QoQ %	Op. Cash Flow	EBITDA Margin
Q3 FY25	₹3,689 Cr	—	₹185 Cr	—	N/A	16.9%
Q4 FY25	₹5,567 Cr	+50.9%	₹726 Cr	+292.4%	N/A	23.2%
Q1 FY26	₹7,017 Cr	+26.1%	₹1,317 Cr	+81.3%	N/A	29.6%
Q3 FY26	₹4,204 Cr	-40.1%	₹252 Cr	-80.9%	N/A	17.5%
Q4 FY26	₹6,574 Cr	+56.4%	₹872 Cr	+246.5%	N/A	23.9%

📊 Year-on-Year Trend

FY	Revenue	YoY %	Net Profit	YoY %	Op. Cash Flow	YoY %
FY22	N/A	—	N/A	—	N/A	—
FY23	₹12,921 Cr	—	₹1,497 Cr	—	₹1,790 Cr	—
FY24	₹15,622 Cr	+20.9%	₹2,056 Cr	+37.3%	₹2,391 Cr	+33.6%
FY25	₹19,445 Cr	+24.5%	₹2,595 Cr	+26.2%	₹3,381 Cr	+41.4%
FY26	₹20,835 Cr	+7.1%	₹3,036 Cr	+17.0%	₹3,509 Cr	+3.8%

📈 Revenue vs Earnings

🎯 EPS: Estimate vs Actual

💰 How Varun Beverages Limited Makes Its Money

🏦 Snapshot of Varun Beverages Limited's Balance Sheet

💸 Looking into Varun Beverages Limited's Cash Flow

📅 Quarterly Results Source: Screener ↗

	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026
Sales +	3,871	2,668	4,317	7,197	4,805	3,689	5,567	7,017	4,897	4,204	6,574
YOY Sales Growth %	21.84%	20.48%	10.90%	28.25%	24.14%	38.28%	28.94%	-2.49%	1.91%	13.98%	18.09%
Expenses +	2,989	2,249	3,329	5,206	3,654	3,110	4,304	5,020	3,751	3,568	5,049
Material Cost %	44.69%	43.37%	43.72%	45.31%	44.46%	43.92%	45.43%	45.47%	43.28%	44.62%	44.81%
Employee Cost %	9.60%	13.92%	9.12%	6.94%	10.68%	12.99%	9.19%	7.83%	11.30%	13.94%	9.42%
Operating Profit	882	418	989	1,991	1,151	579	1,263	1,998	1,146	637	1,525
OPM %	23%	16%	23%	28%	24%	16%	23%	28%	23%	15%	23%
Other Income +	19	9	8	44	24	45	28	77	148	99	44
Other income normal	18.51	9.32	8.35	44.03	24.25	44.64	28.06	77.16	148.03	99.11	43.53
Interest	62	74	94	129	119	109	41	37	45	47	49
Depreciation	171	166	188	242	257	261	273	306	308	330	357
Profit before tax	667	188	716	1,663	800	254	978	1,732	941	359	1,163
Tax %	23%	24%	23%	24%	21%	23%	25%	23%	21%	28%	24%
Net Profit +	514	144	548	1,262	629	196	731	1,325	745	260	879
Minority share	-13	-12	-11	-9	-9	-10	-5	-8	-4	-8	-6
Profit excl Excep	514	144	548	1,262	629	196	731	1,325	745	260	879
Profit for PE	501	132	537	1,253	620	185	726	1,317	741	252	872
Profit for EPS	501	132	537	1,253	620	185	726	1,317	741	252	872
YOY Profit Growth %	32%	77%	25%	26%	24%	40%	35%	5%	20%	36%	20%
EPS in Rs	1.54	0.41	1.65	3.86	1.91	0.55	2.15	3.89	2.19	0.74	2.58
Raw PDF

📊 Profit & Loss Statement Source: Screener ↗

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024	Dec 2025	TTM
Sales +	5,105	7,130	6,450	8,823	13,173	16,043	20,008	21,685	22,693
Sales Growth %	27.52%	39.65%	-9.53%	36.79%	49.30%	21.78%	24.72%	8.39%
Expenses +	4,069	5,667	5,235	7,129	10,310	12,326	15,189	16,616	17,388
Manufacturing Cost %	7.57%	7.36%	8.24%	7.46%	7.22%	6.78%	6.55%	6.02%
Employee Cost %	11.42%	11.38%	13.80%	11.51%	9.38%	9.02%	9.43%	10.15%
Other Cost %	16.76%	15.59%	16.28%	16.10%	14.14%	14.87%	15.44%	15.65%
Operating Profit	1,036	1,462	1,215	1,694	2,863	3,717	4,818	5,070	5,305
OPM %	20%	21%	19%	19%	22%	23%	24%	23%	23%
Other Income +	6	47	-30	51	-18	-5	45	352	368
Exceptional items	-19	2	-67	-17	-57	-84	-74	84
Other income normal	25	45	37	68	38	79	119	268
Interest	223	324	294	207	204	292	483	196	177
Depreciation	385	489	529	531	617	681	947	1,216	1,301
Profit before tax	434	696	363	1,007	2,024	2,739	3,433	4,010	4,195
Tax %	31%	32%	1%	26%	23%	23%	23%	24%
Net Profit +	300	472	357	746	1,550	2,102	2,634	3,062	3,209
Profit from Associates	0	0	0	0	0	0	0	0
Minority share	-7	-3	-28	-52	-53	-46	-40	-26
Exceptional items AT	-13	1	-59	-13	-44	-64	-57	104
Profit excl Excep	313	471	416	759	1,594	2,166	2,691	2,958
Profit for PE	306	468	383	706	1,540	2,119	2,651	2,934
Profit for EPS	293	469	329	694	1,497	2,056	2,595	3,036
Profit Growth %	47%	53%	-18%	84%	118%	38%	25%	11%
EPS in Rs	0.95	1.44	1.01	2.14	4.61	6.33	7.67	8.98	9.40
Dividend Payout %	16%	15%	22%	16%	15%	16%	13%	17%

🏦 Balance Sheet Source: Screener ↗

	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024	Dec 2025
Equity Capital	183	183	289	289	433	650	650	676	676
Reserves	1,587	1,816	3,040	3,235	3,647	4,453	6,287	15,934	18,902
Borrowings +	2,654	2,808	3,417	3,216	3,387	3,884	5,431	2,826	2,508
Long term Borrowings	1,691	1,980	2,355	1,980	1,813	1,727	3,189	841	540
Short term Borrowings	353	378	467	714	1,529	1,968	2,005	1,524	1,484
Lease Liabilities	0	0	0	0	45	189	237	462	484
Preference Capital	0	0	0	0	0	0	0	0	0
Other Borrowings	609	450	595	523	0	-0	-0	-0	-0
Other Liabilities +	852	1,192	1,630	1,707	2,113	2,632	2,819	3,688	3,454
Non controlling int	-1	8	31	65	117	113	148	130	162
Trade Payables	191	317	478	511	712	824	758	1,560	1,401
Advance from Customers	71	69	113	173	79	203	180	219	159
Other liability items	592	799	1,009	958	1,205	1,491	1,732	1,778	1,731
Total Liabilities	5,276	5,998	8,376	8,447	9,579	11,618	15,187	23,124	25,541
Fixed Assets +	3,981	4,387	6,479	6,409	6,311	6,932	8,409	13,402	16,759
Land	692	783	1,209	1,250	1,296	1,679	1,832	1,902	1,994
Building	636	818	1,308	1,392	1,474	1,587	1,958	3,408	4,525
Plant Machinery	2,075	2,248	3,565	3,831	3,967	4,401	5,499	8,598	11,225
Equipments	936	1,021	1,194	1,212	1,242	1,238	1,293	1,529	1,899
Computers	20	17	23	25	28	33	41	65	82
Furniture n fittings	17	20	25	26	29	29	41	69	72
Vehicles	173	652	742	622	690	795	1,086	1,500	1,856
Intangible Assets	497	584	644	644	644	644	644	1,532	1,711
Other fixed assets	588	30	35	32	38	35	51	200	236
Gross Block	5,635	6,172	8,745	9,033	9,410	10,441	12,445	18,802	23,600
Accumulated Depreciation	1,654	1,785	2,265	2,624	3,099	3,509	4,036	5,400	6,841
CWIP	145	352	64	67	497	607	1,922	1,167	271
Investments	8	11	0	0	0	0	21	60	174
Other Assets +	1,141	1,247	1,833	1,972	2,772	4,079	4,835	8,496	8,337
Inventories	439	578	882	929	1,448	1,994	2,151	2,791	2,952
Cash Equivalents	94	93	171	190	337	285	460	2,450	1,998
Loans n Advances	89	103	128	192	187	288	253	664	300
Other asset items	369	345	480	420	579	1,213	1,612	1,745	1,837
Total Assets	5,276	5,998	8,376	8,447	9,579	11,618	15,187	23,124	25,541

💰 Cash Flow Statement Source: Screener ↗

	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024	Dec 2025
Cash from Operating Activity +	620	1,000	1,308	1,012	1,231	1,790	2,391	3,381	3,509
Profit from operations	873	1,123	1,513	1,200	1,624	2,749	3,732	4,778	4,969
Receivables	-34	-13	-32	-76	15	-123	-73	-133	-285
Inventory	45	-151	-185	-47	-519	-557	-160	-479	15
Payables	0	0	0	0	0	0	0	0	0
Loans Advances	0	0	0	0	0	0	0	0	0
Other WC items	-207	114	132	12	236	95	-440	-57	-301
Working capital changes	-197	-50	-85	-111	-269	-585	-673	-669	-571
Direct taxes	-57	-73	-120	-78	-124	-373	-668	-728	-888
Cash from Investing Activity +	-746	-937	-2,320	-472	-1,008	-1,769	-3,288	-4,311	-2,725
Fixed assets purchased	-533	-859	-754	-560	-835	-1,801	-3,264	-3,779	-2,739
Fixed assets sold	17	50	21	24	19	51	70	39	27
Investments purchased	-35	0	-73	0	0	0	0	0	0
Investments sold	35	0	73	0	0	0	0	2	81
Interest received	5	6	5	9	13	23	22	28	46
Dividends received	0	0	0	0	0	0	0	0	0
Investment in group cos	0	0	0	0	0	-0	-22	-40	-121
Acquisition of companies	-212	0	-8	0	0	0	-10	-200	0
Other investing items	-23	-134	-1,583	55	-205	-42	-85	-361	-18
Cash from Financing Activity +	159	-84	1,107	-574	-178	-18	985	2,954	-1,266
Proceeds from shares	4	1	900	0	0	0	4	7,512	9
Proceeds from debentures	300	0	0	0	0	0	0	0	0
Redemption of debentures	0	-300	0	0	0	0	0	0	0
Proceeds from borrowings	0	1,400	1,958	1,020	855	1,478	2,783	1,957	384
Repayment of borrowings	-57	-644	-1,310	-1,233	-726	-1,138	-1,277	-5,508	-885
Interest paid fin	-156	-189	-303	-277	-179	-172	-269	-465	-159
Dividends paid	-46	-46	-69	-72	-108	-162	-227	-325	-507
Financial liabilities	0	0	0	-11	-19	-23	-30	-156	-108
Share application money	0	0	0	0	0	0	0	0	0
Application money refund	0	0	0	0	0	0	0	0	0
Other financing items	113	-308	-69	0	0	0	0	-61	-0
Net Cash Flow	32	-22	95	-33	46	4	88	2,024	-482
Free Cash Flow	103	191	575	476	416	40	-803	-359	797
CFO/OP	81%	104%	98%	90%	80%	76%	82%	85%	87%

📈 Key Financial Ratios

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

🏭 Industry Peers — Other Beverages

#	Company	CMP	P/E	Mkt Cap	ROCE	Qtr Profit	Score
1	Orient Beverages ★	₹223	10.6	₹48	11.7%	+472.2%	76
2	Varun Beverages	₹530	56.3	₹179,194	19.7%	+20.1%	51
3	Transglobe Foods	₹525	—	₹8	13.3%	+0.0%	42
4	Valencia Nutrit.	₹65	38.0	₹112	—	+154.1%	34
5	ANS Industries	₹18	—	₹16	-39.8%	+0.0%	15

★ Orient Beverages ranks higher on combined P/E, ROCE, and growth metrics in Other Beverages

🏛 Shareholding Pattern

	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026
Promoters	60.20%	60.23%	59.82%	59.44%	59.44%	59.43%
FIIs	25.27%	22.98%	21.86%	21.93%	20.31%	19.51%
DIIs	7.00%	9.19%	10.52%	11.78%	13.56%	14.35%
Government	0.00%	0.00%	0.00%	0.00%	0.00%	0.04%
Public	7.52%	7.59%	7.80%	6.84%	6.69%	6.66%
No. of Shareholders	7,42,488	8,73,915	9,68,419	9,02,881	8,72,933	8,77,604

🟢 CATALYSTS

🏆Revenue Growth 18%: Above sector norm of 12% — strong top-line momentum.

💹Low Beta (-0.01): Less volatile than market — defensive play.

🔀Earnings Growth (20%): Above sector norm — strong profit expansion.

🔴 RISKS

📜Elevated P/E (56.4x): Above sector expensive threshold of 50x.

💰Market Risk: Broader market correction or sentiment shift could impact stock.

🔓Sector Risk: Regulatory or competitive changes in Consumer Defensive space.

🕸 Factor Analysis · Radar

Momentum 7/10
1M +38.2%, 6M +7.1%, RSI 77, MACD bullish, Above 200DMA

Sentiment 7/10
Analyst upside +9.7%, Rec: strong buy

Value 2/10
P/E 56.4, P/B 9.2, PEG 2.35, EV/EBITDA 34.0

Quality 6/10
Margin 14.0%, D/E 13

Low Volatility 9/10
Beta -0.01, Ann. vol 30%

🎯 Decision Matrix

Action	If Stock Rises	If Stock Falls
BUY	Capture 9.7% analyst upside	OPM of 18% provides margin buffer; P/E 56x vs sector median 38x is a risk
HOLD	Retain existing position; wait for better entry; FII stake falling (-0.80%)	Miss further upside if momentum continues; 1M return of +38.2% shows momentum
SELL	Lock in +0.5% 1Y return; redeploy into Orient Beverages at lower P/E	Avoid further drawdown; P/E compression risk at 56x

REASONS TO BUY

Analyst upside of 9.7% with mean target of ₹581
ROCE at 20% indicates strong capital efficiency
Revenue growing at 18.1% YoY (sector norm: 4%)

REASONS TO SELL / AVOID

P/E of 56.4x is 1.5x the sector median of 38x
FII stake falling (-0.80%) — institutional exit signal
Orient Beverages offers lower P/E (10.6) with ROCE of 11.7% in the same sector

📰 Latest News

India's Varun Beverages quarterly profit rises on robust demand (April 27)

Reuters · 2026-04-28T03:42

Varun Beverages lines up another acquisition in South Africa

Just Food · 2026-03-18T10:57

Varun Beverages Ltd (NSE:VBL) Q4 2025 Earnings Call Highlights: Strong Domestic and ...

GuruFocus.com · 2026-02-03T15:00

PepsiCo India bottler Varun Beverages posts quarterly profit rise on stronger volumes

Reuters · 2026-02-03T07:22

Varun Beverages Ltd (NSE:VBL) Q3 2025 Earnings Call Highlights: Strong International Growth and ...

GuruFocus.com · 2025-10-30T19:33

Varun Beverages Ltd (NSE:VBL) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...

GuruFocus.com · 2025-07-30T07:03

RECOMMENDATION

SPECULATIVE BUY

COMPOSITE SCORE

65/100

Varun Beverages Limited trades at ₹530.00 with a composite risk score of 65/100. The stock scores 9/25 on valuation, 18/25 on financial health, 20/25 on growth, and 18/25 on technicals. The company is currently profitable with strong return on equity.

Analyst consensus suggests upside of 9.7% with a mean target of ₹581. Revenue growth is at 18.1% — a strong positive signal.

Within Other Beverages, Orient Beverages (P/E 10.6, ROCE 11.7%) ranks higher on techno-fundamental metrics and may be worth considering.

Bottom Line: Positive for Consumer Defensive but monitor closely. The current recommendation is SPECULATIVE BUY.

PROFITABLE HIGH ROE EXPENSIVE