Synopsis: Investec maintained a Buy rating on Varun Beverages with a ₹609 target price, citing growth opportunities from its Asahi partnership and expanded beverage portfolio.
This Large-cap Stock, engaged in manufacturing, bottling, distributing, and selling PepsiCo beverages and snacks across India and international markets through its extensive network, is in focus after Investec gave a buy target of Rs. 609, which has an upside potential of 20.23 percent.
With a market capitalization of Rs. 1,72,970.62 crore, the shares of Varun Beverages Limited were currently trading at Rs. 511.40 per equity share, rising nearly 0.96 percent from its previous day’s close price of Rs. 506.55.
Reason Behind the Surge
Investec, a prominent brokerage firm, has recommended a “Buy” call on Varun Beverages Limited with a target price of Rs. 609 per share, indicating an upside potential of 20.23 percent from its previous day’s close of Rs. 506.55 per share.
Varun Beverages (VBL) has received a positive outlook from Investec, which has given the stock a Buy rating. The brokerage believes VBL’s franchise partnership with Asahi is an important step beyond its traditional PepsiCo-focused business. Through the partnership, VBL can expand its beverage portfolio by introducing dairy-based drinks under the Calpis brand.
Investec also highlighted that amendments to the agreement, including the addition of alcoholic beverages and the removal of SPV restrictions, create opportunities for broader collaboration with Asahi’s global portfolio. This could potentially allow brands such as Super Dry, Peroni, and RTD products to be introduced in India or other VBL international markets. The brokerage believes these developments provide significant long-term growth potential and open up a large future opportunity for VBL in India.
Brand Portfolio
Varun Beverages Limited (VBL) has a diversified beverage and snack portfolio through its partnership with PepsiCo and its own brands. Its portfolio includes popular brands such as Pepsi, Mountain Dew, Mirinda, 7UP, Tropicana, Slice, Nimbooz, Gatorade, Lipton Ice Tea, Aquafina, Sting, and Rockstar. The company also distributes leading snack brands like Lay’s, Kurkure, Doritos, Cheetos, and Simba.
Company Overview
Varun Beverages Limited (VBL) is one of the largest franchise partners of PepsiCo and the second-largest PepsiCo franchise bottler in the world outside the United States. The company manufactures, distributes, and sells a wide range of carbonated soft drinks, juices, water, and sports beverages. VBL operates across 10 countries and also holds distribution rights in 4 additional countries, giving it a strong international presence.
Capacity and Global Presence
The company has delivered strong growth over the years. Its total sales volume increased from 425 million cases in 2020 to 1,213 million cases in 2025, representing a CAGR of around 23.3%. In Q1 CY2026, VBL reported sales volumes of 363 million cases.
Varun Beverages has a strong presence across India and several international markets, including Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe, Mozambique, and South Africa. Its expanding geographic footprint and strong partnership with PepsiCo continue to support long-term growth.
Recent Quarter Results
Coming into financial highlights, Varun Beverages Limited’s revenue has increased from Rs. 5,567 crore in Q4 FY25 to Rs. 6,574 crore in Q4 FY26, which has grown by 18.09 percent. The net profit has also grown by 20.25 percent from Rs. 731 crore in Q4 FY25 to Rs. 879 crore in Q4 FY26. Varun Beverages Limited’s revenue and net profit have grown at a CAGR of 27 percent and 50 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 19.7 percent and 16.2 percent, respectively. Varun Beverages Limited has an earnings per share (EPS) of Rs. 9.41, and its debt-to-equity ratio is 0.13x.
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