Why Analysts Are Bullish On Varun Beverages Ahead of Summer 2026?

Why Analysts Are Bullish On Varun Beverages Ahead of Summer 2026?

With its growing worldwide operations and steady volume momentum, Varun Beverages Ltd. (VBL), one of PepsiCo’s largest franchise partners outside of the US, has become a powerful growth-driven FMCG company. With an investment horizon of six to nine months, Axis Securities picked the stock as its “Pick of the Week,” keeping a BUY rating with a target price of Rs 500, suggesting an upside potential of almost 10% from the current market price of Rs 454.

3 Reasons To Buy The Shares of Varun Beverages As Per Axis Securities

A. Volume-Led Growth

• In Q4CY25, consolidated volumes rose 10.2% YoY to 237 Mn cases, led by India (+10.5%), followed by international markets (+10%).
• Domestic performance rebounded strongly in Q4, underscoring the strength of VBL’s distribution reach and brand portfolio. Further, the onset of the summer season will act as a strong demand catalyst for VBL.

B. Strategic Capacity Expansion to Drive Future Growth

• VBL continues to strengthen its growth platform through calibrated capacity expansion. Four new greenfield plants have been commissioned in high-growth regions, alongside brownfield additions across key locations to improve scale and logistics efficiency.
• Internationally, the Morocco snacks facility is now fully operational, while the Zimbabwe plant is close to commissioning, supporting portfolio diversification beyond beverages.

C. Beer Pilot Adds a New Growth Lever

• VBL plans to pilot Carlsberg in Southern Africa under an exclusive distribution tie-up, leveraging its existing infrastructure and favourable regulations.
• The low-capex, test-and-learn approach supports portfolio diversification and strengthens presence in key growth markets.

Varun Beverages Share Price Today

Varun Beverages (VBL) began trading at Rs 457.55 on February 23, 2026, slightly higher than its previous closing price. The stock rose to an intraday high of Rs 459.15 throughout the morning before falling to Rs 454.55. With a trading volume of 771,590 shares as of midday, the price is still up 0.32%.

With a significant market capitalization of Rs 1,54,054 crores, VBL is a dominant force in the FMCG industry from a value standpoint. Based on its trailing twelve-month Earnings Per Share (EPS) of Rs 8.98, the stock currently has a P/E Ratio of 50.71.

Varun Beverages Ltd.’s (VBL) share price is Rs 455.30 on the National Stock Exchange (NSE) as of 11:35 AM IST on February 23, 2026.

Varun Beverages Outlook & Valuation

“VBL remains well positioned to sustain strong growth, supported by the BevCo acquisition in South Africa and DRC, expansion of its snacks business in Africa, deeper rural penetration, and ongoing capacity additions. Further, scaling high-margin brands like Sting and sharpening focus on value-added beverages are expected to drive steady revenue and margin expansion. We expect Revenue/EBITDA/PAT to grow at 19%/20%/26% CAGR over CY24-27E,” commented the research analysts of Axis Securities.

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