StrengthTalking point
Profit outpacing revenue
Profit grew 16.2% while revenue grew 8.5%, so the company kept more of each rupee of revenue as profit.
Importance 61 / 95 · growth
Varun Beverages Limited · Research view
Varun Beverages Limited
NSE: VBLBSE: 540180ISIN INE200M01039Face value ₹2consolidated
₹424
−1.33% · 2026-10-01 · 52-wk ₹382–₹544
Financials to FY2026 · 3 years of history · prices to 2026-10-01consolidatedstandalone
Section 02 · Synthesis
What stands out?
The strongest observations the engine found, ranked. Every line is generated from the filed numbers by a fixed rule — no opinion, no estimate.
StrengthConcernWatchContext
Context
Lower P/B than peers
Trades at 7.27× book — 33% below the beverages median of 10.83×.
Importance 47 / 95 · valuation
Concern
Returns declining
ROE declined from 22.1% to 16.8% year on year.
Importance 46 / 95 · profitability
Section 03 · The company
Who is this company?
Classified by the exchange under Fast Moving Consumer Goods › Fast Moving Consumer Goods › Beverages › Other Beverages.
- Market cap
- ₹1.43 L cr
- FY2026 revenue
- ₹22,226 cr
- FY2026 net profit
- ₹3,062 cr
- Net worth
- ₹19,741 cr
- Total debt
- ₹2,508 cr
- EPS (basic)
- ₹8.98
- Listed
- NSE · BSE
- Reporting
- Ind-ASApr–Mar
Peer set used on this page: 3 beverages.
Section 04 · Business performance
Is the business growing?
RevenueNet profit
Strength
Profit grew 16.2% while revenue grew 8.5%, so the company kept more of each rupee of revenue as profit.
Rule PROFIT_FASTER_THAN_REVENUE
- Revenue growth per year
- +16.7%over 2 years
- Revenue growth
- +8.5%vs last year
- Net profit growth
- +16.2%vs last year
- Change in net profit since FY24
- +46%
Net profit grew 16.2% year on year (FY2025 → FY2026).
Section 05 · Recent activity
What changed recently?
Quarterly results, the trailing-twelve-months snapshot, and verified corporate actions — kept separate from each other and from the annual story above. Every figure traces to a filed number; nothing here is external news or commentary.
Strength
Q2 FY27 revenue was ₹8,651 cr, up 20.8% from ₹7,163 cr in Q2 FY26 a year earlier.
Rule QTR_REVENUE_GROWTH_YOY
Strength
Q2 FY27 net profit was ₹1,525 cr, up 15.1% from ₹1,325 cr a year earlier.
Rule QTR_PROFIT_GROWTH_YOY
Strength
Q2 FY27 revenue of ₹8,651 cr is the highest of the 13 quarters on record for this company.
Rule QTR_REVENUE_AT_RECORD
A. Quarterly results
RevenueNet profit
| Quarter | Revenue | YoY | Net profit | YoY | Net margin |
|---|---|---|---|---|---|
| Q2 FY25 | 7,334 | — | 1,262 | — | 17.2% |
| Q3 FY25 | 4,932 | — | 629 | — | 12.7% |
| Q4 FY25 | 3,818 | +39.8% | 196 | +36.1% | 5.1% |
| Q1 FY26 | 6,722 | +18.3% | 879 | +20.1% | 13.1% |
| Q2 FY26 | 7,163 | −2.3% | 1,325 | +5.0% | 18.5% |
| Q3 FY26 | 5,048 | +2.3% | 745 | +18.5% | 14.8% |
| Q4 FY26 | 4,335 | +13.5% | 260 | +32.9% | 6.0% |
| Q2 FY27 | 8,651 | +20.8% | 1,525 | +15.1% | 17.6% |
C. Corporate actions
31 Jul 2026DividendInterim Dividend - Rs. - 0.5000 — ₹0.50/share
30 Apr 2026DividendInterim Dividend - Rs. - 0.5000 — ₹0.50/share
8 Apr 2026DividendFinal Dividend - Rs. - 0.5000 — ₹0.50/share
1 Aug 2025DividendInterim Dividend - Rs. - 0.5000 — ₹0.50/share
7 May 2025DividendInterim Dividend - Rs. - 0.5000 — ₹0.50/share
4 Apr 2025DividendFinal Dividend - Rs. - 0.5000 — ₹0.50/share
12 Sept 2024Stock splitStock Split From Rs.5/- to Rs.2/- — 5:2
9 Aug 2024DividendInterim Dividend - Rs. - 1.2500 — ₹1.25/share
4 Apr 2024DividendFinal Dividend - Rs. - 1.2500 — ₹1.25/share
14 Aug 2023DividendInterim Dividend - Rs. - 1.2500 — ₹1.25/share
15 Jun 2023Stock splitStock Split From Rs.10/- to Rs.5/- — 10:5
12 Apr 2023DividendFinal Dividend - Rs. - 1.0000 — ₹1.00/share
11 Aug 2022DividendInterim Dividend - Rs. - 2.5000 — ₹2.50/share
6 Jun 2022Bonus issueBonus issue 1:2 — 2:3
11 Aug 2021DividendInterim Dividend - Rs. - 2.5000 — ₹2.50/share
10 Jun 2021Bonus issueBonus issue 1:2 — 2:3
14 Aug 2020DividendInterim Dividend - Rs. - 2.5000 — ₹2.50/share
26 Aug 2019DividendInterim Dividend - Rs. - 2.5000 — ₹2.50/share
25 Jul 2019Bonus issueBonus issue 1:2 — 2:3
20 Aug 2018DividendInterim Dividend - Rs. - 2.5000 — ₹2.50/share
16 Aug 2017DividendInterim Dividend - Rs. - 2.5000 — ₹2.50/share
Section 06 · Business performance
Is it becoming more profitable?
EBITDA marginNet margin
Concern
ROE declined from 22.1% to 16.8% year on year.
Rule ROE_DETERIORATED_YOY
- EBITDA margin now
- 24.3%
- 3-year range
- 22.6–24.3%
- ROE FY2026
- 16.8%
- ROCE FY2026
- 20.0%
Section 07 · Financial health
Is financial health improving?
Net worth (shareholders' funds)
Leverage and cash generation over the loaded history are shown above.
Operating cash flowNet profit
- Total debt
- ₹2,508 cr
- Operating cash flow ÷ net profit
- 1.15×FY2026
- Free cash flow
- ₹797 cr
- Current ratio
- 1.94×
Section 08 · Relative position
How does it compare with peers?
Ranked against 3 beverages (FY2026, consolidated).
Revenue growth
VBL · 2nd of 3 · set median 8.5%
EBITDA margin
VBL · 1st of 3 · set median 9.9%
Return on equity
VBL · 3rd of 3 · set median 19.9%
P/E ratio
VBL · 1st of 3 · set median 51.5×
Context
Trades at 7.27× book — 33% below the beverages median of 10.83×.
Rule PB_BELOW_PEERS
- P / E
- 46.9×FY2026
- P / B
- 7.3×latest book
- P / S
- 6.4×FY2026
- Earnings yield
- 2.1%FY2026
Section 09 · The stock
How has the stock performed?
Long-term price performance is shown above.
- 1-year return
- −4.2%
- 3-year return
- +12.2%
- 5-year return
- +249.6%
- From 52-wk high
- −22.0%
Section 10 · Technical data
What does the technical data say?
Price-action indicators as of 2026-10-01. Secondary to the fundamentals above — included for timing context, not as a signal.
- vs 50-day avg
- Below₹432
- vs 200-day avg
- Below₹466
- RSI (14)
- 48.2neutral
- MACD histogram
- 2.7
- From 52-wk high
- −22.0%
- From 52-wk low
- +11.0%
- 30-day volatility
- 23.6%ann.
- 6-month return
- +9.3%
Section 11 · Open questions
What should I investigate further?
Observations the engine tagged watch or deteriorating — prompts for your own research, not conclusions.
- ConcernReturns decliningROE declined from 22.1% to 16.8% year on year.ROE_DETERIORATED_YOY · conviction 46
- Only 3 annual year(s) of financials loaded — multi-year trend analysis is limited.
Section 12 · Reference
The numbers
The full statements, kept deliberately secondary. Every figure traces to a BSE Integrated Filing (inline XBRL); ratios are recomputed from the normalised facts.
| Metric | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue | 16,321 | 20,481 | 22,226 |
| Total income | 16,400 | 20,603 | 22,578 |
| EBITDA | 3,689 | 4,832 | 5,402 |
| Profit before tax | 2,740 | 3,435 | 4,016 |
| Net profit | 2,102 | 2,634 | 3,062 |
| EPS (₹) | 15.8 | 8.0 | 9.0 |
| Net worth | 7,085 | 16,740 | 19,741 |
| Total debt | 5,431 | 2,826 | 2,508 |
| Operating cash flow | 2,391 | 3,381 | 3,509 |
| Free cash flow | −803 | −359 | 797 |
| Ratio | FY24 | FY25 | FY26 |
|---|---|---|---|
| Growth | |||
| Revenue growth YoY | — | 25.5 | 8.5 |
| Profit growth YoY | — | 25.3 | 16.2 |
| Profitability | |||
| EBITDA margin % | 22.6 | 23.6 | 24.3 |
| Net margin % | 12.8 | 12.8 | 13.6 |
| Return on equity % | 29.7 | 22.1 | 16.8 |
| Return on capital % | 24.0 | 24.2 | 20.0 |
| Leverage & cash | |||
| Debt to equity | 0.77 | 0.17 | 0.13 |
| Cash flow ÷ profit | 1.14 | 1.28 | 1.15 |
| Current ratio | 1.02 | 1.74 | 1.94 |