Varun Beverages Ltd.
NSE: VBL · Other Beverages
Snapshot
Unlock Varun Beverages Ltd.'s vital signs
Growth · Profitability · Valuation · Strength · Conviction
Company Overview
Business
Varun Beverages Limited is a key franchisee of PepsiCo, engaged in the manufacturing, bottling, distribution, and sale of a wide range of carbonated soft drinks, non-carbonated beverages, and packaged drinking water. The company operates across India and several international territories including Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe.
Business Model
The company generates revenue by acting as a strategic bottling and distribution partner for PepsiCo, leveraging an extensive network of retail outlets and distributors. It earns margins on the production and sale of branded beverages across diverse product categories.
Growth Outlook
Growth is driven by the expansion of distribution footprints in both domestic and international markets, alongside the continuous introduction of new beverage categories. The company benefits from the strong brand equity of PepsiCo products and increasing consumer demand for packaged beverages.
Key Risks
- Dependency on PepsiCo. The company's business model is heavily reliant on its franchise agreements with PepsiCo, making it vulnerable to changes in the relationship or brand strategy.
- Regulatory and Health Risks. Increasing global scrutiny regarding sugar content and plastic waste management could lead to stricter regulations or shifts in consumer preferences.
- Geopolitical and Currency Risk. Operating in multiple international markets exposes the company to foreign exchange volatility and geopolitical instability in emerging economies.
- Raw Material Price Volatility. Fluctuations in the costs of key inputs such as sugar, packaging materials, and fuel can significantly impact operating margins.
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Key Metrics
REVENUE
₹24,755 Cr
TTM · consolidated
NET PROFIT
₹3,409 Cr
TTM · consolidated
EPS
₹10.01
TTM · consolidated
RETURN ON EQUITY
17.0%
TTM · consolidated
RETURN ON CAPITAL EMPLOYED
20.5%
TTM · consolidated
P/E
40.7x
Q1 FY27 · consolidated
EV/EBITDA
23.0x
Q1 FY27 · consolidated
EBITDA MARGIN
24.5%
TTM · consolidated
NET PROFIT MARGIN
17.6%
Q1 FY27 · consolidated
DEBT TO EQUITY
0.2x
Q1 FY27 · consolidated
Peers · Other Beverages
| Company | Mkt Cap | P/E | EV/EBITDA | Rev Gr YoY | EBITDA Mgn | ROE | ROCE | 1Y Return |
|---|---|---|---|---|---|---|---|---|
Varun Beverages Ltd.VBL | ₹1.38L Cr | 40.72 | 23.00 | 14.6% | 24.5% | 17.0% | 20.5% | -16.7% |
United Spirits Ltd.UNITDSPR | ₹1.07L Cr | 55.49 | 38.18 | 2.9% | 9.9% | 22.1% | 25.6% | +11.4% |
Radico Khaitan LtdRADICO | ₹60,189 Cr | 85.50 | 52.53 | 18.6% | 5.3% | 23.2% | 29.3% | +58.2% |
United Breweries Ltd.UBL | ₹33,828 Cr | 85.52 | 40.07 | -5.1% | 4.8% | 8.9% | 13.7% | -30.3% |
Allied Blenders & Distillers Ltd.ABDL | ₹17,061 Cr | 77.90 | 31.76 | -5.9% | 7.5% | 13.1% | 26.3% | +23.5% |
Tilaknagar Industries Ltd.TI | ₹13,242 Cr | -418.05 | 29.46 | 98.9% | 7.7% | -1.9% | 4.5% | +16.4% |
As of Q1 FY27
Financials
Varun Beverages Ltd.
NSE: VBL · Other Beverages
Snapshot
Unlock Varun Beverages Ltd.'s vital signs
Growth · Profitability · Valuation · Strength · Conviction
Company Overview
Business
Varun Beverages Limited is a key franchisee of PepsiCo, engaged in the manufacturing, bottling, distribution, and sale of a wide range of carbonated soft drinks, non-carbonated beverages, and packaged drinking water. The company operates across India and several international territories including Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe.
Business Model
The company generates revenue by acting as a strategic bottling and distribution partner for PepsiCo, leveraging an extensive network of retail outlets and distributors. It earns margins on the production and sale of branded beverages across diverse product categories.
Growth Outlook
Growth is driven by the expansion of distribution footprints in both domestic and international markets, alongside the continuous introduction of new beverage categories. The company benefits from the strong brand equity of PepsiCo products and increasing consumer demand for packaged beverages.
Key Risks
- Dependency on PepsiCo. The company's business model is heavily reliant on its franchise agreements with PepsiCo, making it vulnerable to changes in the relationship or brand strategy.
- Regulatory and Health Risks. Increasing global scrutiny regarding sugar content and plastic waste management could lead to stricter regulations or shifts in consumer preferences.
- Geopolitical and Currency Risk. Operating in multiple international markets exposes the company to foreign exchange volatility and geopolitical instability in emerging economies.
- Raw Material Price Volatility. Fluctuations in the costs of key inputs such as sugar, packaging materials, and fuel can significantly impact operating margins.
Start your research today
Unlock AI insights, financials, peers and live data on Varun Beverages Ltd. and 5,000+ companies — free.
Key Metrics
REVENUE
₹24,755 Cr
TTM · consolidated
NET PROFIT
₹3,409 Cr
TTM · consolidated
EPS
₹10.01
TTM · consolidated
RETURN ON EQUITY
17.0%
TTM · consolidated
RETURN ON CAPITAL EMPLOYED
20.5%
TTM · consolidated
P/E
40.7x
Q1 FY27 · consolidated
EV/EBITDA
23.0x
Q1 FY27 · consolidated
EBITDA MARGIN
24.5%
TTM · consolidated
NET PROFIT MARGIN
17.6%
Q1 FY27 · consolidated
DEBT TO EQUITY
0.2x
Q1 FY27 · consolidated
Peers · Other Beverages
As of Q1 FY27