Should I Buy Varun Beverages Shares in India in 2025?
Is it the right time to buy Varun Beverages?
ScoreVarun Beverages Limited, trading at approximately ₹456 as of early July 2025, stands out as a pillar in India’s non-alcoholic beverages sector. With an average daily trading volume near 8 million shares and a market cap around ₹1,54,300 crores, the stock enjoys significant market liquidity and investor interest. Despite a recent technical correction, the company delivered exceptional Q1 2025 results, reporting revenue and net profit growth above 29% and 35% year-on-year, respectively, once again exceeding analyst expectations. Further underpinning future prospects are the successful commissioning of new production sites, notably in Meghalaya, and robust volume growth initiatives both domestically and across Africa. While the technical trend remains cautious, market sentiment is taking a constructive turn, bolstered by Varun Beverages’ industry leadership, innovative product portfolio, and the ongoing expansion into fast-growing regions of India. The current consensus from more than 12 national and international banks places the share’s target at ₹593, reflecting confidence in the company’s ability to maintain strong operational momentum. In the context of India’s increasing soft drinks consumption, Varun Beverages’ strategic growth and solid fundamentals suggest good opportunities may be forming for patient investors in the sector.
- ✅Consistently strong revenue and profit growth above 25% year-on-year.
- ✅Largest PepsiCo franchisee outside the US and clear market leader in India.
- ✅Aggressive capacity expansion with new plants operational and more planned.
- ✅Solid return ratios: ROCE at 24.8%, ROE at 22.5%.
- ✅Beneficiary of India’s rising non-alcoholic beverage consumption trend.
- ❌Valuation remains high with a PER of 55.4, limiting near-term upside.
- ❌Significant revenue dependence on Indian market and seasonal climate patterns.
Score- ✅Consistently strong revenue and profit growth above 25% year-on-year.
- ✅Largest PepsiCo franchisee outside the US and clear market leader in India.
- ✅Aggressive capacity expansion with new plants operational and more planned.
- ✅Solid return ratios: ROCE at 24.8%, ROE at 22.5%.
- ✅Beneficiary of India’s rising non-alcoholic beverage consumption trend.
Is it the right time to buy Varun Beverages?
- ✅Consistently strong revenue and profit growth above 25% year-on-year.
- ✅Largest PepsiCo franchisee outside the US and clear market leader in India.
- ✅Aggressive capacity expansion with new plants operational and more planned.
- ✅Solid return ratios: ROCE at 24.8%, ROE at 22.5%.
- ✅Beneficiary of India’s rising non-alcoholic beverage consumption trend.
- ❌Valuation remains high with a PER of 55.4, limiting near-term upside.
- ❌Significant revenue dependence on Indian market and seasonal climate patterns.
Score- ✅Consistently strong revenue and profit growth above 25% year-on-year.
- ✅Largest PepsiCo franchisee outside the US and clear market leader in India.
- ✅Aggressive capacity expansion with new plants operational and more planned.
- ✅Solid return ratios: ROCE at 24.8%, ROE at 22.5%.
- ✅Beneficiary of India’s rising non-alcoholic beverage consumption trend.
- What is Varun Beverages?
- Varun Beverages Stock Price
- Our full analysis of the Varun Beverages stock
- How to Buy Varun Beverages Stock
- Our 7 tips for buying Varun Beverages stock
- The latest news about Varun Beverages
- FAQ
- On the same topic
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of Varun Beverages for over three years. Every month, over a million users in India trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Varun Beverages.
What is Varun Beverages?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Indian | Headquartered in India, capitalising on fast-growing soft drink demand domestically. |
| 💼 Market | NSE, BSE | Listed on top Indian exchanges, which facilitates easy access for retail investors. |
| 🏛️ ISIN code | INE200M01039 | Unique identifier for Varun Beverages shares in electronic trading systems. |
| 👤 CEO | Ravi Jaipuria (Chairman) | Experienced leadership drives strategic growth and operational expansion for the company. |
| 🏢 Market cap | ₹1,54,300 crores (approx. $18.5 billion) | Large-cap company with strong market position and robust liquidity. |
| 📈 Revenue | ₹5,567 crores (Q1 2025) | Revenue is growing at a healthy pace, exceeding analyst expectations in recent quarters. |
| 💹 EBITDA | ₹1,263 crores (Q1 2025) | High EBITDA signals strong profitability and efficient cost management. |
| 📊 P/E Ratio (Price/Earnings) | 55.4 | High P/E reflects premium valuation and high investor growth expectations. |
Varun Beverages Stock Price
The price of Varun Beverages stock is slightly down this week.
The current share price is ₹456, increasing by 1.21% in the past 24 hours but dropping 0.49% weekly.
Varun Beverages posts a market capitalization of ₹1,54,300 crores, with a three-month average daily volume of 7.98 million shares.
Its P/E ratio stands at 55.4, the latest dividend yield is 0.22%, and the stock beta is 0.83.
The low beta and steady volumes point to relatively less price volatility, despite recent market corrections.
Our full analysis of the Varun Beverages stock
We have examined Varun Beverages’s latest financial results alongside its impressive three-year share price trajectory. Combining rigorous analysis of financial indicators, technical chart signals, market data, and a detailed competitor landscape through our proprietary algorithms, we provide a nuanced, strategic perspective for readers. So, why might Varun Beverages stock once again become a strategic entry point into the rapidly expanding Indian consumer and beverage sector in 2025?
Recent performance and market context
Varun Beverages’s stock currently trades at ₹456, supported by a market capitalization of ₹1,54,300 crores and a commendable three-month average daily volume of 7.98 million shares. Despite a recent technical correction (-29% over six months, -29.3% year-on-year), the price is consolidating near long-term support, reflecting resilience in a volatile market. Positive recent developments—including the commissioning of the Meghalaya plant and ongoing capacity expansion—underscore VBL’s proactive growth strategy. The broader Indian beverage market remains on an upward trajectory, buoyed by urbanization, a rising middle class, and robust non-alcoholic beverage consumption patterns, reinforcing a favourable macro backdrop for additional value creation.
Technical analysis
Key technical indicators hint at a strong potential for a trend reversal. The 14-day RSI sits at 40.7, indicating neither an overbought nor oversold zone, while the MACD, though negative, is flattening—often a precursor to momentum transition. The current share price is slightly beneath all major moving averages (20, 50, 100, 200-day), with principal support clustered around ₹419–420 and resistance at ₹483–484. This confluence of supports offers an optimal risk-reward platform for accumulation ahead of an expected technical rebound. Importantly, the low beta (0.83) signals reduced volatility, making any breakout move likely to be steady and sustainable. Bullish reversal signals could be further catalyzed by upcoming earnings or key corporate events, setting an ideal stage for entry.
Fundamental analysis
On fundamentals, Varun Beverages displays the hallmarks of a scalable, high-margin outperformer. Q1 2025 results show a 29% year-on-year revenue leap to ₹5,567 crores, with EBITDA and net profit surging 27.8% and 35.2%, respectively—demonstrating powerful operational leverage and cost discipline. Return on capital employed (ROCE, 24.8%) and return on equity (ROE, 22.5%) remain industry-leading, and the company’s dominant market position as the largest PepsiCo franchisee outside the US ensures high supply chain efficiency and defensive pricing power. While the P/E ratio of 55.4 denotes a premium valuation, it is justified by consistent outperformance, robust top-line expansion, and the rare confluence of scale, brand partnership, and rapid market penetration. The modest dividend yield (0.22%) signals prudent capital retention for further growth, while also offering some income support.
- World-class execution and successful ramp-up of three new greenfield plants in 2024.
- Well-diversified product portfolio: carbonated drinks, juices, and new categories tailored to evolving consumer preferences.
- Untapped opportunities across North East India and Africa, markets expected to generate outsized growth over the next cycle.
Volume and liquidity
Sustained trading activity, with an average daily turnover of nearly 8 million shares, reflects high market confidence and liquidity, enabling smooth investor entry and exit. The shareholder base is robust and institutionally anchored, with 60.23% held by promoters, 22.98% by foreign institutional investors, and 9.19% by domestic institutional investors. This composition ensures a stable float, supports price discovery, and underscores the depth and institutional validation of the Varun Beverages growth story.
Catalysts and positive outlook
- The ongoing capacity expansion (additional plants coming online in late 2025 and 2026) enables SKU growth, production efficiencies, and higher market share.
- A powerful volume surge (34% organic growth in Q1 2025) showcases the success of distribution and portfolio strategies.
- Strategic product innovation—leveraging iconic PepsiCo labels and differentiated offerings—positions VBL to capture incremental consumption across new categories.
- The recent solar energy investments and green initiatives not only lower costs but substantively strengthen ESG credentials, appealing to global investors.
- Sector tailwinds include government incentives, heightened demand for packaged cold beverages, and fast-evolving urban retail channels.
Notably, Varun Beverages’s entrenched relationships, world-class operations, and responsive supply chain provide significant entry barriers and structural advantages over pure-play domestic rivals.
Investment strategies
- Short-term: Technical support near ₹419 offers a tight stop-loss and the chance to benefit from a stochastic bounce or early reversal, especially around earnings releases.
- Medium-term: Ongoing expansion and upcoming plant launches align with cyclical demand spikes (summer, festival seasons), suggesting a mid-year accumulation phase will likely be rewarded by volume outperformance.
- Long-term: Participation in VBL’s journey means exposure to the fastest-growing segments of Indian FMCG, backed by an international brand partner and an agile, proven management team. Investors may find the recent correction has reset valuations to attractive, long-term compounding levels.
For all horizons, staged accumulation at or just below current levels could optimize average cost, while watching for trigger events such as plant inaugurations, earnings beats, or regulatory changes.
Is it the right time to buy Varun Beverages?
Varun Beverages’s durable revenue growth, exceptional profitability metrics, expanding global footprint, and unique PepsiCo franchise rights collectively make the fundamentals justify renewed interest in the stock. While short-term technical weakness is evident, the stock’s robust structural underpinnings, market-leading execution, and upcoming catalysts suggest that a new bullish phase may be on the horizon. The convergence of volume momentum, operational excellence, and sector tailwinds at current levels seems to represent an excellent opportunity for buyers seeking exposure to India’s consumer story.
In conclusion, Varun Beverages combines resilient business fundamentals, supportive technical setups, and an array of strategic growth drivers that may propel the stock into a new era of outperformance. For investors searching for a dynamic yet defensible leader in India’s beverage sector, the current setup not only justifies renewed attention but might ultimately deliver market-beating returns as growth cycles accelerate and new catalysts materialize.
How to Buy Varun Beverages Stock
Buying Varun Beverages stock online is straightforward and secure when you use a regulated broker in India. Retail investors commonly choose between two methods: spot (cash) buying, which involves purchasing real shares, or trading with CFDs (Contracts for Difference), which lets you speculate on price movements using leverage. Both routes are accessible on leading Indian trading platforms. For the most cost-effective and suitable experience, you’ll find a detailed broker comparison further down the page.
Spot buying
A cash purchase of Varun Beverages stock means you directly own the company’s shares, making you eligible for dividends and voting rights. Indian brokers typically charge a fixed commission per order, which is often around ₹80–₹150.
Gain scenario
If the Varun Beverages share price is ₹456, you can buy around 2 shares with a ₹1,000 stake, including a brokerage fee of approximately ₹90.
If the share price rises by 10%, your shares are now worth ₹1,100.
Result: +₹100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD trading on Varun Beverages allows you to benefit from the stock’s price movements without owning the underlying shares. The main fees are the bid-ask spread and possible overnight financing if positions are held for multiple days. Leverage lets you amplify your exposure, but it also raises the risk.
Gain scenario
You open a CFD position on Varun Beverages shares, with 5x leverage and a ₹1,000 stake.
This gives you a market exposure of ₹5,000.
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +₹400 gain, on a bet of ₹1,000 (excluding fees).
Final advice
Before making any transaction, it’s wise to compare broker fees, trading conditions, and the range of available services to find what fits your needs best; a broker comparison is available further down this page. Ultimately, your choice will depend on your objectives, risk tolerance, and whether you prefer direct share ownership or more flexible trading through CFDs.
Check out the best brokers in India!Compare brokersOur 7 tips for buying Varun Beverages stock
| 📊 Step | 📝 Specific tip for Varun Beverages |
|---|---|
| Analyze the market | Review long-term trends in India’s non-alcoholic beverage market and monitor consumer demand for Varun Beverages products. |
| Choose the right trading platform | Opt for a SEBI-registered broker offering low transaction fees and efficient access to Varun Beverages stock. |
| Define your investment budget | Allocate a suitable portion of your portfolio, considering the premium valuation and recent stock volatility of Varun Beverages. |
| Choose a strategy (short or long term) | For long-term growth, leverage the company’s continued production expansion and rising Indian beverage consumption. |
| Monitor news and financial results | Track quarterly earnings, factory openings, and any expansion-related updates influencing Varun Beverages performance. |
| Use risk management tools | Set stop-loss orders or define exit levels to navigate price corrections and protect your capital on Varun Beverages trades. |
| Sell at the right time | Consider booking profits near key resistance levels or when the price rallies after strong earnings from Varun Beverages. |
The latest news about Varun Beverages
Varun Beverages posts strong Q1 2025 results with net profit rising 35.2% year-on-year. Net profit reached ₹731 crores for the quarter, supported by revenue of ₹5,567 crores and EBITDA of ₹1,263 crores. This growth is driven by a sharp increase in beverage sales volumes and ongoing improvements in operational efficiency, both of which exceeded analyst expectations for the period.
Commercial production begins at the new Meghalaya facility, expanding regional footprint in India’s northeast. The new manufacturing site, operational since May 2025, enhances Varun Beverages’ reach in a high-growth region and supports its supply of both carbonated soft drinks and juice-based beverages nationwide. This marks a key milestone for product distribution, especially during India’s peak summer consumption months.
Three greenfield plants commissioned in 2024 with two more under construction for late 2025 and 2026 expansion. The recent operational ramp-ups and continuous forward investment demonstrate a clear commitment to scaling up capacity. This aggressive capacity expansion in India aims to capture incremental demand and sustain leadership as PepsiCo’s principal franchisee in the country.
Varun Beverages delivers organic volume growth of 34% in Q1 2025, outperforming broader market trends in beverages. Organic growth was fueled by a diversified portfolio, new product launches, and greater rural and urban distribution. The company’s sales performance reflects a resilient consumer base and increasing non-alcoholic beverage consumption in India.
Varun Beverages maintains an industry-leading ROCE and ROE, underscoring strong capital efficiency. With a return on capital employed of 24.8% and return on equity of 22.5%, the company demonstrates robust profitability. This is further supported by a stable promoter holding and strong presence across Indian states, even amid temporary sector volatility and correction in share prices.
FAQ
What is the latest dividend for Varun Beverages stock?
The latest dividend for Varun Beverages is ₹1 per share, declared for FY2024-25 and typically paid in August. The current dividend yield remains modest compared to other large Indian stocks, and the company’s payout policy is conservative as it prioritizes reinvestment in growth and production capacity.
What is the forecast for Varun Beverages stock in 2025, 2026, and 2027?
Based on the current price of ₹456, the projected values are ₹593 for the end of 2025, ₹684 for 2026, and ₹912 for 2027. Varun Beverages benefits from robust revenue momentum and sector tailwinds, supported by continuous plant expansion, making its growth outlook especially attractive for the years ahead.
Should I sell my Varun Beverages shares?
Holding Varun Beverages shares may be appropriate, considering its strong fundamentals and status as PepsiCo’s leading partner outside the US. The company shows solid revenue and profit growth, with opportunities from expanding domestic capacity. Mid- and long-term growth prospects remain positive, especially given India’s rising beverage consumption trends.
Are Varun Beverages dividends and capital gains taxable in India?
Yes, dividends from Varun Beverages are taxed at your applicable slab rate, while long-term capital gains above ₹1 lakh are taxed at 10%. There is no tax deducted at source on listed share sale gains, and all major transactions are reportable under Indian income tax laws.
What is the latest dividend for Varun Beverages stock?
The latest dividend for Varun Beverages is ₹1 per share, declared for FY2024-25 and typically paid in August. The current dividend yield remains modest compared to other large Indian stocks, and the company’s payout policy is conservative as it prioritizes reinvestment in growth and production capacity.
What is the forecast for Varun Beverages stock in 2025, 2026, and 2027?
Based on the current price of ₹456, the projected values are ₹593 for the end of 2025, ₹684 for 2026, and ₹912 for 2027. Varun Beverages benefits from robust revenue momentum and sector tailwinds, supported by continuous plant expansion, making its growth outlook especially attractive for the years ahead.
Should I sell my Varun Beverages shares?
Holding Varun Beverages shares may be appropriate, considering its strong fundamentals and status as PepsiCo’s leading partner outside the US. The company shows solid revenue and profit growth, with opportunities from expanding domestic capacity. Mid- and long-term growth prospects remain positive, especially given India’s rising beverage consumption trends.
Are Varun Beverages dividends and capital gains taxable in India?
Yes, dividends from Varun Beverages are taxed at your applicable slab rate, while long-term capital gains above ₹1 lakh are taxed at 10%. There is no tax deducted at source on listed share sale gains, and all major transactions are reportable under Indian income tax laws.
On the same topic
