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 ₹2standalone
₹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
- ₹14,557 cr
- FY2026 net profit
- ₹2,677 cr
- Net worth
- ₹18,765 cr
- Total debt
- ₹404 cr
- EPS (basic)
- ₹7.91
- 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
- +7.3%over 2 years
- Revenue growth
- +1.5%vs last year
- Net profit growth
- +15.4%vs last year
- Change in net profit since FY24
- +51%
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
- 29.4%
- 3-year range
- 24.8–29.4%
- ROE FY2026
- 15.2%
- ROCE FY2026
- 19.5%
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
- ₹404 cr
- Operating cash flow ÷ net profit
- 0.96×FY2026
- Free cash flow
- ₹1,051 cr
- Current ratio
- 3.99×
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 | 12,633 | 14,349 | 14,557 |
| Total income | 12,779 | 14,703 | 15,071 |
| EBITDA | 3,128 | 4,038 | 4,278 |
| Profit before tax | 2,368 | 3,070 | 3,543 |
| Net profit | 1,775 | 2,320 | 2,677 |
| EPS (₹) | 13.7 | 7.1 | 7.9 |
| Net worth | 7,076 | 16,559 | 18,765 |
| Total debt | 4,882 | 881 | 404 |
| Operating cash flow | 1,953 | 2,967 | 2,577 |
| Free cash flow | −637 | 599 | 1,051 |
| Ratio | FY24 | FY25 | FY26 |
|---|---|---|---|
| Growth | |||
| Revenue growth YoY | — | 13.6 | 1.5 |
| Profit growth YoY | — | 30.7 | 15.4 |
| Profitability | |||
| EBITDA margin % | 24.8 | 28.1 | 29.4 |
| Net margin % | 13.9 | 15.8 | 17.8 |
| Return on equity % | 25.1 | 19.6 | 15.2 |
| Return on capital % | 21.8 | 23.3 | 19.5 |
| Leverage & cash | |||
| Debt to equity | 0.69 | 0.05 | 0.02 |
| Cash flow ÷ profit | 1.10 | 1.28 | 0.96 |
| Current ratio | 0.89 | 2.46 | 3.99 |