Varun Beverages Ltd.
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ABOUT
AI Sector View
AI GENERATEDFast Moving Consumer Goods
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.
PROS
- Company has a healthy return on capital (ROCE) of 25.0%
- Company has a good return on equity (ROE) track record: 3 Years ROE 24.8%
- Strong cash generation - operating cash flow backs reported profits (CFO/PAT 1.19x)
- Company comfortably covers its interest (21.5x coverage)
- Stock looks reasonably valued - P/E of 41.6 is below its historical median
- Company maintains a comfortable, low leverage position
CONS
- Receivables are growing faster than sales - a possible quality concern
- Recent results are weak - TTM profit is down 17.1% versus prior year
- Promoter holding has decreased over last 2 years: -3.2pp
- Stock is trading at 8.5x its book value
- Rich enterprise valuation - EV/EBITDA of 30.5x
* The pros and cons are machine generated based on quantitative rules.
Peer comparison
| Name | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| NESTLEIND | 1384.00 | 70.03 | 266878.70 | 0.87 | 9586.80 | 1382.67 | 63781.80 | 1157.04 | 98.35 | 23.86 |
| VBL | 416.25 | 41.58 | 140795.10 | 0.36 | 1525.36 | 15.08 | 8650.57 | 20.77 | 20.73 | 27.04 |
| BRITANNIA | 4970.00 | 45.97 | 119711.54 | 1.82 | 593.38 | 14.08 | 4999.97 | 10.26 | 56.48 | 16.77 |
| JUBLFOOD | 470.40 | 71.52 | 31039.12 | 0.26 | 100.03 | 6.03 | 2569.65 | 13.66 | 25.56 | 19.77 |
| HATSUN | 1222.80 | 78.20 | 27237.66 | 0.49 | 60.58 | — | 2363.72 | 17.61 | 17.40 | 10.81 |
| MILKYMIST | 293.30 | 177.78 | 22579.51 | 0.00 | 646.79 | — | 9734.46 | — | 13.79 | 14.77 |
| ZYDUSWELL | 552.65 | 93.43 | 17583.15 | 0.22 | 118.90 | -7.04 | 1437.00 | 67.54 | 4.42 | 16.82 |
| DEVYANI | 137.95 | 0.00 | 17008.40 | 0.00 | 171.04 | 7576.84 | 15805.16 | 1064.74 | 8.98 | 16.09 |
| LTFOODS | 437.85 | 23.74 | 15204.47 | 0.69 | 183.45 | 8.87 | 3151.83 | 27.92 | 19.77 | 11.26 |
| BIKAJI | 548.50 | 53.20 | 13752.89 | 0.23 | 59.47 | 1.62 | 734.26 | 15.26 | 21.65 | 13.48 |
| MANORAMA | 2063.45 | 52.81 | 13024.99 | 0.04 | 78.66 | 67.55 | 404.01 | 39.53 | 35.00 | 26.29 |
| KWIL | 43.05 | 0.00 | 10114.99 | 0.00 | 50.70 | 354.77 | 878.30 | 99.34 | — | 11.77 |
Quarterly Results
Consolidated Figures in Rs. Crores / View Standalone
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 5,700 | 3,938 | 2,731 | 4,398 | 7,334 | 4,932 | 3,818 | 5,680 | 7,163 | 5,048 | 4,335 | 6,722 | 8,651 | |
| 4,189 | 3,056 | 2,313 | 3,409 | 5,342 | 3,781 | 3,238 | 4,416 | 5,164 | 3,900 | 3,696 | 5,193 | 6,773 | |
| Operating Profit | 1,511 | 882 | 418 | 989 | 1,991 | 1,151 | 580 | 1,264 | 1,999 | 1,147 | 639 | 1,529 | 1,877 |
| OPM % | 26.51% | 22.40% | 15.32% | 22.48% | 27.15% | 23.34% | 15.19% | 22.25% | 27.90% | 22.73% | 14.75% | 22.75% | 21.70% |
| 42 | 19 | 9 | 8 | 44 | 24 | 45 | 28 | 77 | 148 | 99 | 44 | 104 | |
| Interest | 69 | 62 | 74 | 94 | 129 | 119 | 109 | 41 | 37 | 45 | 47 | 49 | 57 |
| Depreciation | 172 | 171 | 166 | 188 | 242 | 257 | 261 | 273 | 306 | 308 | 330 | 357 | 409 |
| Profit before Tax | 1,311 | 667 | 188 | 716 | 1,664 | 800 | 255 | 978 | 1,733 | 943 | 361 | 1,167 | 1,977 |
| Tax % | 23.31% | 22.91% | 23.55% | 23.43% | 24.12% | 21.41% | 22.95% | 25.19% | 23.46% | 20.76% | 27.35% | 24.37% | 22.85% |
| Net Profit | 0 | 0 | 0 | 0 | 1,262 | 629 | 196 | 731 | 1,325 | 745 | 260 | 879 | 1,525 |
| 7.65 | 1.54 | 0.41 | 1.65 | 3.86 | 1.91 | 0.56 | 2.15 | 3.89 | 2.19 | 0.74 | 2.58 | 4.50 |
Profit & Loss
Consolidated Figures in Rs. Crores / View Standalone
| Dec 2023 | Dec 2024 | Dec 2025 | TTM | |
|---|---|---|---|---|
| 16,043 | 20,008 | 21,685 | 24,755 | |
| 12,410 | 15,264 | 16,610 | 19,562 | |
| Operating Profit | 3,633 | 4,744 | 5,076 | 5,193 |
| OPM % | 22.65% | 23.71% | 23.41% | 20.98% |
| 79 | 121 | 352 | 395 | |
| Interest | 292 | 483 | 196 | 197 |
| Depreciation | 681 | 947 | 1,216 | 1,404 |
| Profit before Tax | 2,739 | 3,433 | 4,010 | 4,448 |
| Tax % | 23.27% | 23.27% | 23.63% | 23.17% |
| Net Profit | 2,102 | 2,634 | 3,062 | 3,417 |
| EPS | 15.82 | 7.67 | 8.98 | — |
| Dividend Payout % | 15.80% | 13.03% | 16.71% | — |
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:
- -12%
RETURN ON EQUITY
- 10 Years:
- —
- 5 Years:
- —
- 3 Years:
- 25%
- Last Year:
- 17%
Balance Sheet
Consolidated Figures in Rs. Crores / View Standalone
| Dec 2023 | Dec 2024 | Dec 2025 | |
|---|---|---|---|
| Equity Capital | 650 | 676 | 676 |
| Minority Interest | 148 | 130 | 162 |
| 6,278 | 15,915 | 18,884 | |
| 4,397 | 2,489 | 2,213 | |
| Trade Payables | 758 | 1,560 | 1,401 |
| 2,956 | 2,354 | 2,204 | |
| Total Liabilities | 15,187 | 23,124 | 25,541 |
| 8,409 | 13,402 | 16,759 | |
| Capital Work in Progress | 1,922 | 1,162 | 266 |
| 21 | 60 | 174 | |
| 2,151 | 2,791 | 2,952 | |
| 359 | 846 | 1,249 | |
| Cash & Bank | 460 | 2,450 | 1,998 |
| 1,865 | 2,414 | 2,142 | |
| Total Assets | 15,187 | 23,124 | 25,541 |
Cash Flows
Consolidated Figures in Rs. Crores / View Standalone
| Dec 2023 | Dec 2024 | Dec 2025 | |
|---|---|---|---|
| 2,391 | 3,381 | 3,509 | |
| Cash from Investing | -3,290 | -4,317 | -2,735 |
| Cash from Financing | 985 | 2,954 | -1,266 |
| 86 | 2,018 | -492 |
Ratios
Consolidated Figures in Rs. Crores / View Standalone
| Dec 2023 | Dec 2024 | Dec 2025 | |
|---|---|---|---|
Documents
Corporate disclosures, annual reports, credit ratings, and concall transcripts
2026-09-11 - The Share Allotment Committee today approved the allotment of 29,750 Equity Shares of face value of Rs. 2 each upon exercise of stock options vested under the Employees Stock Option Scheme 2016 as per details in enclosed intimation.
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 - Update on incorporation of KIVA Spirits and Company Limited as per details enclosed.
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 - 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 - Intimation of ESG Rating
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 - Transcript of Investors & Analysts Conference Call.
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 .
News
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