Varun Beverages Ltd(VBL)

NSE: VBLBSE: 540180

₹ 393.3-2.12%refreshed 23 Oct, 03:58 pm ISTMarket cap: ₹ 1.33 L crNext results: 30 Oct 2026Website: www.varunbeverages.comUpdated: 24 Oct 2026

About

Varun Beverages Limited is a PepsiCo franchisee bottler for India and several international territories. It makes and distributes carbonated soft drinks, juices, energy drinks, dairy beverages and packaged water under PepsiCo trademarks, and also runs a snacks business in Africa. It is the second-largest PepsiCo franchisee globally outside the United States and accounts for more than 90% of PepsiCo's sales volumes in India. In CY2025, consolidated volumes reached 1,213.1 million cases.^[1][2]

Geographic mix and franchise territories

India contributed about 67% of revenue from operations in Fiscal 2025.^[2]
As of FY25, VBL held franchise rights in 26 Indian states and 6 union territories, and in Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe, South Africa, Lesotho, Eswatini and DRC.^[2]
As of FY25, VBL also held distribution rights in Namibia, Botswana, Mozambique and Madagascar.^[2]
VBL's exclusive bottling and trademark licence for India with PepsiCo has been extended to April 2049, and the earlier SPV-only restriction has been removed (Q2 FY26 call).^[3]
Exports were 0.80% of standalone turnover (₹1,168.33 million) in FY25.^[2]

Products and brands

As of FY25, its PepsiCo carbonated brands included Pepsi, Pepsi Zero, Mountain Dew, Sting, Seven-Up, Mirinda, Seven-Up Nimbooz Masala Soda and Evervess.^[2]
As of FY25, its non-carbonated range included Slice, Tropicana, Seven-Up Nimbooz, Gatorade and Aquafina water.^[2]
Value-added dairy grew over 40% and Nimbooz grew more than 30% in H1 CY2026. Dairy realisations are about 3x those of regular beverages.^[3]
Adrenaline Rush (Rs. 60 energy drink) and Sting Classic performed ahead of plan in CY2026. Can supply shortage was cited as the only constraint.^[4]
Tropicana PET grew more than 100% in Q1 CY2026. The Nimbooz Jeera range launched in March 2026.^[4]
On 18 June 2026, VBL agreed a franchise with Asahi Group Holdings to bring the CALPIS fermented dairy brand (Original and Mango) to India.^[3]

Volumes and realisation

Consolidated sales volume grew 19.8% YoY to 466.7 million cases in Q2 CY2026. India grew 14.4% to 346.5 million cases, and international grew 38.4%, including 11.8 million cases from Twizza.^[3]
Full-year CY2025 consolidated volume was 1,213.1 million cases, up 7.9% YoY, after rainfall disrupted the peak season.^[1]
Consolidated realisation per case was Rs. 175.3 in Q2 CY2026 (+1.2% YoY). India realisation per case was Rs. 169.6 (-0.6% YoY).^[3]
Low-sugar and no-sugar products made up about 73% of consolidated volume in H1 CY2026, up from about 59% in CY2025.^[3]
Africa snacks revenue was Rs. 112 crore in Q1 CY2026, up from Rs. 52 crore in Q1 CY2025.^[4]

Manufacturing and capacity

Four greenfield plants at Prayagraj, Buxar, Damtal and Mendipathar were commissioned in CY2025. They added ~20%+ capacity that year and ~40-45% over two years.^[1]
Existing capacity can absorb up to 50% volume growth without more India capex. New lines run at up to 1,000 bottles per minute, compared with 200 bpm on older lines.^[4]
Snacks plants operate in Morocco (at full scale as of Q3 CY2025) and Zimbabwe (commissioned late CY2025).^[5]
As of FY25, VBL made its own preforms, crowns, closures, corrugated boxes, crates and shrink-wrap films at select locations.^[2]
As of FY25, VBL held 50% of Everest Industrial Lanka, a visi-cooler maker, and had formed the White Peak Refrigeration JV to make visi-coolers in India.^[2]
As of FY25, key suppliers included PepsiCo India (concentrate), Reliance Industries (PET resin), DCM Shriram and Triveni (sugar), and Tetra Pak (packaging).^[2]

Distribution and reach

As of FY25, VBL reached consumers through distributors, retailers, modern trade, hotels and restaurants.^[2]
VBL targets about 500,000 new outlets in CY2026, compared with a historical pace of ~300,000-400,000 a year, on a base of about 4 million outlets.^[4]
India monthly volume growth has tracked at 20%+ since March 2026, except for a flat April. July 2026 was also tracking at 20%+.^[3]

Expansion and capex

Twizza (South Africa) became a step-down subsidiary on 18 March 2026 at an enterprise value of ZAR 2,053 million. It added 3 plants with backward integration.^[4]
VBL Industries (Kenya) is acquiring Devyani Food Industries (Kenya) for USD 32 million (~Rs. 3,050 million) for a route to market in carbonated and energy drinks. A Kenya carbonated drinks line is under construction.^[3]
A Crickley Dairy purchase agreement was signed at ~ZAR 238 million through BevCo. It needs South African competition approval.^[4]
A first greenfield Carlsberg brewery in Africa is under construction and targets commissioning by end CY2026. Carlsberg beer is being test-marketed in Zambia, Zimbabwe, DRC and South Africa.^[1]
Net capex capitalised in H1 CY2026 was ~Rs. 9,500 million. India capex for CY2026 is expected to be under Rs. 500-600 crore, with likely only one plant.^[3]
The medium-term aim for the snacks business is ~USD 100 million across two to three territories.^[3]

Recent developments

From 1 October 2026, Varun Beverages (Zimbabwe) is the exclusive distributor in Zimbabwe for Mondelez South Africa's chocolate, biscuit, candy and gum products.^[6]
CRISIL upgraded VBL's long-term credit rating to AAA/Stable by the end of CY2025.^[1]
Earlier agreements to acquire SBC Tanzania and SBC Ghana were terminated (FY25 annual report).^[2]

Market Cap

₹1,33,034 Cr

High / Low

₹556 / 381

Stock P/E

39.3

Price / Book

6.1

Book Value

₹58

EPS

₹9.0

No. of Shares

338.21 Cr

ROCE

20.0%

ROE

16.8%

OPM

18.5%

Debt / Equity

0.13

Sales

₹22,226 Cr

Net Profit

₹3,062 Cr

Promoter holding

59.4%

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