$VBL Varun Beverages (VBL) – Consumer Growth Leader with Strong PepsiCo Partnership

$VBL Varun Beverages is one of the largest PepsiCo franchisees globally and a key beneficiary of rising beverage consumption, premiumization, and increasing penetration of soft drinks, juices, and energy drinks across India and international markets. The company continues to expand its manufacturing footprint, distribution network, and product portfolio, creating strong long-term growth visibility. Key Financial Highlights • Q4 FY26 revenue grew ~18% YoY to ₹6,600+ crore. • Q4 FY26 net profit increased ~20% YoY to about ₹879 crore. • EBITDA grew over 35% YoY with margin expansion to ~22.8%. • Trailing 12-month revenue exceeded ₹22,600 crore. • International business is growing rapidly and now contributes roughly one-third of revenue. Investment Rationale • Exclusive PepsiCo bottling rights provide a strong competitive moat. • Beneficiary of rising per-capita beverage consumption in India. • Strong distribution network and manufacturing scale support market leadership. • Consistent volume growth across carbonated drinks, juices, and sports beverages. • Expanding international operations provide an additional growth engine. • Strong cash generation, operating leverage, and earnings visibility. With strong brand partnerships, expanding geographic presence, consistent volume growth, and increasing consumer demand, Varun Beverages remains one of the strongest long-term consumption plays in India.