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Varun Beverages Ltd.

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varunbeverages.comBSE: 540180NSE: VBL
Market Cap₹ 1,37,328 Cr.
Current Price
High / Low₹ 556 / 381
Stock P/E46.5
Book Value₹ 61
Price to Book8.84
Dividend Yield0.37 %
ROCE19.6 %
ROE15.2 %
Face Value₹ 2

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ABOUT

AI Sector View

AI GENERATED

Fast Moving Consumer Goods

Hold

Rural demand proxies are mixed. Tractor sales rose 18.0% YoY (2026-07) and 2-wheelers were up 23.0% YoY (2026-06), but rural employment slowed to 1.0% YoY (2026-07), fertiliser sales were 0.0% YoY (2026-05), and food inflation of 5.52% (Jul/26) can pressure household budgets. FPI outflows remain heavy at INR -8081 crore over 3 months to 2026-08-31, limiting upside.

Confidence
62%
View full sector analysis →

PROS

  • Company is almost debt free
  • Company has a healthy return on capital (ROCE) of 22.7%
  • Company has a good return on equity (ROE) track record: 3 Years ROE 21.0%
  • Strong cash generation - operating cash flow backs reported profits (CFO/PAT 1.11x)
  • Company comfortably covers its interest (107.7x coverage)
  • Stock looks reasonably valued - P/E of 46.5 is below its historical median

CONS

  • Receivables are growing faster than sales - a possible quality concern
  • Recent results are weak - TTM profit is down 20.9% versus prior year
  • Promoter holding has decreased over last 2 years: -3.2pp
  • Stock is trading at 8.8x its book value
  • Rich enterprise valuation - EV/EBITDA of 38.4x

* The pros and cons are machine generated based on quantitative rules.

Peer comparison

Fast Moving Consumer GoodsFMCGConsumer Food
Part ofNIFTY NEXT 50NIFTY FMCGNIFTY100 QUALTY30NIFTYLARGEMIDCAP250NIFTY CONSUMPTION
S.No.Name
1.NESTLEIND1393.1070.49268633.470.869586.801382.6763781.801157.0498.3523.86
2.VBL406.0040.56137328.070.371525.3615.088650.5720.7720.7327.04
3.BRITANNIA5099.5047.17122830.791.77593.3814.084999.9710.2656.4816.77
4.JUBLFOOD475.5072.3031375.640.25100.036.032569.6513.6625.5619.77
5.HATSUN1199.9576.7426728.680.5060.58—2363.7217.6117.4010.81
6.MILKYMIST266.05161.2620481.680.00646.79—9734.46—13.7914.77
7.ZYDUSWELL555.1093.8417661.100.22118.90-7.041437.0067.544.4216.82
8.DEVYANI137.200.0016915.930.0017.10667.681580.5216.478.9816.09
9.LTFOODS453.8024.6115758.340.661834.46988.6731518.311179.2019.7711.26
10.BIKAJI571.9055.4714339.610.2259.471.62734.2615.2621.6513.48
11.MANORAMA2092.1553.5413206.150.0478.6667.55404.0139.5335.0026.29
12.KRBL434.0013.109933.821.04260.7473.161495.86-5.5915.2620.56
Detailed Comparison with:

Quarterly Results

Standalone Figures in Rs. Crores / View Consolidated

Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
4,6722,8921,8463,4465,8023,0872,0144,0535,3053,0642,1354,5015,996
3,3642,1851,5522,6254,0632,2861,6913,0423,6642,2771,8103,3284,345
Operating Profit1,3087072948211,7398013231,0101,6417873251,1721,651
OPM %27.99%24.45%15.94%23.82%29.97%25.95%16.04%24.93%30.94%25.68%15.24%26.05%27.53%
4631513367100154609015021474104
Interest6256678410399648481344
Depreciation129128125139167157154165180172185199223
Profit before Tax1,1625551546301,5366452598971,5487573421,0431,755
Tax %25.28%25.06%22.72%25.52%25.11%23.69%19.39%24.43%25.04%23.68%23.61%24.49%24.54%
Net Profit8684161194691,1504922096781,1605772617881,324
6.681.280.361.443.541.520.632.013.431.710.772.333.92

Profit & Loss

Standalone Figures in Rs. Crores / View Consolidated

Dec 2023Dec 2024Dec 2025TTM
12,63314,34914,55715,696
9,64810,66110,79211,761
Operating Profit2,9853,6883,7653,935
OPM %23.63%25.70%25.86%25.07%
146354514543
Interest2443543329
Depreciation518618702780
Profit before Tax2,3683,0703,5433,897
Tax %25.04%24.42%24.46%24.28%
Net Profit1,7752,3202,6772,951
EPS13.666.867.91—
Dividend Payout %18.30%14.57%18.95%—

COMPOUNDED SALES GROWTH

10 Years:
—
5 Years:
—
3 Years:
—

COMPOUNDED PROFIT GROWTH

10 Years:
—
5 Years:
—
3 Years:
—

STOCK PRICE CAGR

10 Years:
—
5 Years:
27%
3 Years:
4%
1 Year:
-14%

RETURN ON EQUITY

10 Years:
—
5 Years:
—
3 Years:
21%
Last Year:
15%

Balance Sheet

Standalone Figures in Rs. Crores / View Consolidated

Corporate actions

2022

Jun 6

1:2

2021

Jun 10

1:2

The Board of Directors at their meeting held today (started at 11:00 A.M. and concluded at 11:30 A.M.) inter-alia considered and approved the following: 1. The Unaudited Financial Results of the Company (Standalone and Consolidated) for the Quarter ended March 31, 2021 2. Recommended the Bonus Issue of Equity Shares in the proportion of 1 (One) Equity Share of Rs. 10 each for every 2 (Two) Equity Shares of Rs. 10 each held by the shareholders of the Company as on the record date, subject to the approval of shareholders through Postal Ballot i.e. in compliance with the applicable laws. 3. In supersession of earlier decision, appointment of Link Intime India Private Limited in place of KFin Technologies Private Limited (formerly Karvy Fintech Private Limited) as Registrar and Share Transfer Agent (RTA) of the Company w.e.f May 3, 2021 for better services. Till such time the process of change of RTA is completed, KFin Technologies Private Limited will continue as RTA of the Company

Dec 2023Dec 2024Dec 2025
Equity Capital650676676
6,41715,86418,070
3,897759292
Trade Payables492558448
2,5531,6271,514
Total Liabilities14,00919,48421,000
6,9389,18110,837
Capital Work in Progress1,576956136
1,4502,0963,770
1,5361,6891,659
213200266
Cash & Bank522,0591,600
2,2443,3042,731
Total Assets14,00919,48421,000

Cash Flows

Standalone Figures in Rs. Crores / View Consolidated

Dec 2023Dec 2024Dec 2025
1,9532,9672,577
Cash from Investing-2,770-3,687-2,057
Cash from Financing8192,729-979
22,009-459

Ratios

Standalone Figures in Rs. Crores / View Consolidated

Dec 2023Dec 2024Dec 2025

Shareholding Pattern

Numbers in percentages

Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
62.6662.6660.2060.2359.8259.4459.4459.4459.43
25.3224.1925.2722.9821.8621.9320.3119.5119.03
4.544.977.009.1910.5211.7813.5614.3515.16
Government0.000.000.000.000.000.000.000.000.00
Public7.478.187.527.597.806.846.706.666.33

Documents

Corporate disclosures, annual reports, credit ratings, and concall transcripts

2026-09-09
Analysts/Institutional Investor Meet/Con. Call Updates

2026-09-09 - We wish to inform you that pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, representatives of the Company shall participate in the meeting of group of investors as per schedule given in the enclosed intimation.

2026-08-31
General Updates

2026-08-31 - Update on incorporation of KIVA Spirits and Company Limited as per details enclosed.

2026-08-25
General Updates

2026-08-25 - The Board of Directors at their meeting held today inter-alia approved: (i) to incorporate a wholly-owned subsidiary company in India, (ii) appointment of Mr. Prathmesh Mishra as CEO & Managing Director of above-mentioned proposed wholly-owned subsidiary company in India; and (iii) to incorporate a joint venture company in Tunisia as per details in enclosed disclosure.

2026-08-17
General Updates

2026-08-17 - In continuation to our earlier disclosure dated July 2, 2026 wherein we had informed that the Board of Directors of The Beverage Company Proprietary Limited ( Bevco , a subsidiary of the company) and Twizza Proprietary Limited ( Twizza , a step-down subsidiary of the company) approved the merger of Twizza with its holding company i.e. Bevco, subject to applicable laws in South Africa, we would like to update that the above-mentioned merger of Twizza with Bevco has been completed and consequently, Twizza is ceased to be a step-down subsidiary of the Company. The above information was received today (at 06:59 P.M. IST) by our Company.The detailed disclosure as required under Regulation 30 read with Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026 had already been submitted in our earlier intimation dated July 2, 2026.

2026-08-11
General Updates

2026-08-11 - Intimation of ESG Rating

2026-08-10
Analysts/Institutional Investor Meet/Con. Call Updates

2026-08-10 - We wish to inform you that pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, representatives of the Company shall participate in the meeting of group of investors as per schedule given in the enclosed intimation.

2026-08-04
Analysts/Institutional Investor Meet/Con. Call Updates

2026-08-04 - Transcript of Investors & Analysts Conference Call.

2026-08-04
General Updates

2026-08-04 - We would like to inform you that Varun Beverages (Zimbabwe) (Private) Limited, subsidiary company, has incorporated a joint venture company in Zimbabwe namely Varun Beverages Holding (Zimbabwe) (Private) Limited .

2026-08-01
General Updates

2026-08-01 - In continuation to our earlier disclosure dated July 6, 2026 wherein we had informed that VBL Industries (Kenya) Limited ( VBL Kenya ), a wholly-owned subsidiary of our Company entered into an agreement to acquire the value-added dairy Beverages, Juices and Packaged Drinking Water of Devyani Food Industries (Kenya) Limited ( DFIL Kenya ) for a consideration of USD 32 Million and transaction was expected to be completed on or before August 1, 2026, we would like to update that VBL Kenya has today successfully completed the aforesaid acquisition in accordance with the terms of above-mentioned agreement, accordingly the acquisition is effective w.e.f. August 1, 2026. The above information was received today (at 12:44 P.M. IST) by our Company.The detailed disclosure as required under Regulation 30 read with Para B of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026 had already been submitted in our earlier intimation dated July 6, 2026.

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