VBL
Large CapVarun Beverages Limited
Consumer
Varun Beverages Limited (VBL) is a key player in the global beverage industry and the second largest franchisee of PepsiCo outside the US. It produces and distributes a wide range of carbonated soft drinks (CSDs), non-carbonated beverages (NCBs), and packaged drinking water under PepsiCo trademarks across 10 countries with distribution rights in 4 additional countries.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Good · 62/100Rev +18% YoY · PAT +20% YoY · +56% QoQ · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6,574 Cr | +18.1% | +56.4% |
| EBITDA | ₹1,525 Cr | +20.7% | +139.4% |
| Operating margin | 23.0% | +0 bps | +800 bps |
| PAT | ₹879 Cr | +20.3% | +238.1% |
| PAT margin | 13.4% | +24 bps | +719 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
VBL reported strong Q1 CY2026 results with consolidated sales volumes up 16.3% YoY, driven by India (14.4%) and international (21.4%). Net Revenue grew 18.1% YoY to Rs. 65,742 million, EBITDA rose 21.0% YoY to Rs. 15,289 million, and PAT increased 20.1% YoY to Rs. 8,787 million.
Strong Q1 CY2026 performance driven by robust volume growth in both India and international markets. Margin expansion supported by operational efficiencies and raw material stocking. Strategic acquisitions in South Africa strengthen international footprint and future synergies, aligning with the long-term growth thesis.
Q1 CY2026 Sales Volumes by Category
Latest issuer-disclosed distribution across 3 reported categories.
India Volume Growth Initiatives
Undertook targeted initiatives including pack upsizing, selective price-point launches to onboard new consumers, and new launches in energy and juice based drink segments.
International Expansion (Africa)
Consummated acquisition of Twizza in South Africa, strengthening manufacturing and route-to-market. Entered agreement to acquire Crickley Dairy in South Africa.
Diversified Portfolio
Across Africa, building scale in snacks and deepening presence in high-potential markets, in line with strategy of broadening portfolio and strengthening consumer relevance.
New Plant Commissioning & Stabilization
Facilities commissioned over the last year (Buxar, Prayagraj, Damtal and Meghalaya) have stabilized well and are expected to support growth and enhance operating efficiencies.
Favorable Demographics & Urbanization
Long-term opportunity across markets supported by favorable demographics, rising incomes, growing urbanization, and increasing beverage consumption.
Operational Efficiencies
Improved gross margins and India EBITDA margins driven by operational efficiencies from robust volume growth.
Inflationary Raw Material Environment
Gross margins improved despite the inflationary raw material environment, indicating ongoing cost pressures.
Increased Depreciation
Depreciation increased by 30.9% on account of commissioning of new plants of last year, impacting profitability.
Increased Finance Costs
Finance cost increased by 18.0% on account of acquisition of Twizza in South Africa in the current quarter.
Regulatory Approvals for Acquisitions
Acquisition of Crickley Dairy is subject to regulatory and other approvals, including Competition Commissions of South Africa.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The presentation explicitly compares Q1 CY2026 results against Q1 CY2025, indicating a focus on year-over-year performance for seasonal beverage business trends and long-term growth.
Consolidated Sales Volume Growth
Grew by 16.3% to 363.4 million cases in Q1 CY2026 from 312.4 million cases in Q1 CY2025.
India Sales Volume Growth
Strong volume growth of 14.4% in India in Q1 CY2026.
International Sales Volume Growth
Strong volume growth of 21.4% in international territories in Q1 CY2026.
Consolidated Realization per Case
Improved by 1.6% at the consolidated level, supported by improved realizations in international territories primarily due to favorable currency movement.
Confidence in Long-Term Opportunity
Management remains confident in the long-term opportunity across markets, supported by favorable demographics, rising incomes, growing urbanization, and increasing beverage consumption.
Positioned for Sustained Growth
With adequate capacities, a diversified portfolio, and a strong distribution network, VBL is well-positioned to deliver sustained growth and create long-term value.
Synergies from Acquisitions
The Twizza acquisition is expected to generate meaningful operational and commercial synergies over time.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| India Realization per Case | 1.5% decline YoY in Q1 CY2026 due to volume initiatives. | Stabilization or improvement in realization per case as volume initiatives mature and pricing power is restored. |
| International Acquisition Synergies | Twizza acquisition consummated, Crickley Dairy agreement signed in South Africa. | Realization of operational and commercial synergies from South African acquisitions and their contribution to overall profitability. |
| Raw Material Cost Trends | Gross margins improved despite inflationary raw material environment in Q1 CY2026. | Sustained ability to manage raw material inflation and maintain or further improve gross margins through efficient sourcing and product mix. |
| Low/No Sugar Product Mix | ~63% of consolidated sales volumes in Q1 CY2026. | Continued growth in the mix of low/no sugar products and its impact on overall product premiumization and margin profile. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
54NeutralSMA20 +12.9% / mo · near 52W high
Technical chart
VBLweekly · 5Y-10.4%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 61. Wait for confirmation.
- SMA20 rising (~11.4% over last month) — short-term momentum positive.
- RSI(14) at 61 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- Within 3% of 52-week high — testing resistance.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 27.9%.
- Growth contributes 19/25 to the score.
Main drags
- Penalty bucket subtracts 1 points.
- Valuation is weaker at 9/30; verify the latest quarterly trend.
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 90th percentile of the scored universe and 91st percentile within Consumer. Main check: financial discipline is weak at 58/100.
High Trust Lite: Promoter holding is 59.4%. Key concern: ROCE trend is -5%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Consumer: 91st pctile, median 67 · Large: 74th pctile, median 74
152 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 59.4%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.4%.
- ▸6 years of positive FCF.
Trust risks
- ▸ROCE trend is -5%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 55.50
- P/B
- 9.02
- EV/EBITDA
- 27.11
- Market Cap
- 176556.00Cr
Profitability
- ROE
- 16.20%
- ROCE
- 19.70%
- ROA
- 12.56%
- Dividend Y
- 0.29%
Growth (CAGR)
- Revenue 5Y
- 27.00%
- EPS 5Y
- 50.00%
- Revenue 3Y
- 18.00%
- EPS 3Y
- 24.00%
Balance Sheet
- Debt/Equity
- 0.13
- Interest Coverage
- 29.97×
- Altman Z
- 8.89
- Book Value
- 57.90
Cash Flow
- FCF Yield
- 0.44%
- FCF Positive Y
- 6/5
- OCF
- 3509.00 Cr
- EPS TTM
- 9.40
Shareholding
- Promoter Hold
- 59.43%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 86%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.