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Swing Capital

Varun Beverages Ltd

NSE: VBL BSE: 540180FMCG

Varun Beverages Ltd has been associated with PepsiCo since the 1990s and is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world. The company produces and distributes a wide range of carbonated soft drinks, non-carbonated drinks and packaged water sold under trademarks owned by PepsiCo. PepsiCo brands produced and sold by the company include Pepsi, Seven-up, Mirinda Orange, Mountain Dew, Tropicana Juices and many more. [1]

₹512
52W: ₹381 — ₹535
PE 62.2 · Book ₹55.5 · +823% vs book
Market Cap₹1,73,258 Cr
Stock P/E62.2Price to Earnings
ROCE19.1%Return on Capital
ROE14.6%Return on Equity
Div. Yield0.3%Face Value ₹2

Strengths

  • +Company has reduced debt.
  • +Company is almost debt free.
  • +Company has delivered good profit growth of 55.4% CAGR over last 5 years
  • +Company has been maintaining a healthy dividend payout of 17.3%

Weaknesses

  • −Stock is trading at 9.03 times its book value
  • −Promoter holding has decreased over last 3 years: -4.45%

Shareholding Pattern

Promoters59.43%
FIIs19.51%
DIIs14.35%
Public6.66%
CategoryJun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters62.67%62.67%60.2%▼2.560.23%▲0.059.82%▼0.459.44%▼0.459.44%59.43%▼0.0
FIIs25.32%24.18%▼1.125.27%▲1.122.98%▼2.321.86%▼1.121.93%▲0.120.31%▼1.619.51%▼0.8
DIIs4.54%4.97%▲0.47%▲2.09.19%▲2.210.52%▲1.311.78%▲1.313.56%▲1.814.35%▲0.8
Public7.46%8.19%▲0.77.52%▼0.77.59%▲0.17.8%▲0.26.84%▼1.06.69%▼0.16.66%▼0.0

Financial Statements

MetricDec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales1,8463,4465,8023,0872,0144,0535,3053,0642,1354,501
Expenses1,5522,6254,0632,2861,6913,0423,6642,2771,8103,328
Operating Profit2948211,7398013231,0101,6417873251,172
OPM %16%24%30%26%16%25%31%26%15%26%
Net Profit1194691,1504922096781,160577261788
EPS ₹0.371.443.541.520.6223.431.710.772.33

AI Insights

Revenue Trend

TTM revenue at ₹15,005Cr, up 3.1% YoY. OPM at 26%.

Debt Position

Borrowings at ₹404Cr. Debt-to-equity ratio: 0.02x. Healthy balance sheet.

Capex Cycle

CWIP at ₹141Cr (1% of fixed assets). Moderate ongoing capital expenditure.

Institutional Flow

DIIs: 14.35% (+11.19pp change). FIIs: 19.51% (-7.20pp change). Promoters hold 59.43%.

Margin & Efficiency

ROCE improving from 9% (Dec 2014) to 19% (Dec 2025). Working capital days: 56.

Valuation

PE 62.2x with 19.1% ROCE. Price is 823% above book value of ₹55.5. Dividend yield: 0.3%.

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