VBL remains a strong long-term FMCG growth story,

VBL remains a strong long-term FMCG growth story, 🟢 Latest Q1 FY27 Revenue: ~₹8,650 crore, +21% YoY PAT: ~₹1,521 crore, +15.5% Sales volume: +19.8% to 466.7 million cases India volumes: +14.4% International volumes: +38.4%, helped by Twizza. The biggest positive is that volume growth remains strong, rather than the business relying only on price increases. 🚀 Major future triggers 1. PepsiCo partnership: VBL has extended its exclusive PepsiCo bottling and trademark licence agreement in India until April 2049. Importantly, the earlier restriction requiring VBL to operate solely as an SPV for PepsiCo has been removed, giving VBL greater flexibility to pursue adjacent opportunities. 2. International expansion: The Twizza acquisition in South Africa has strengthened VBL's African manufacturing and distribution network. VBL is also entering Kenya through the acquisition of Devyani Food Industries' dairy, juice and packaged-water business. 3. New categories: VBL has partnered with Asahi to introduce CALPIS in India and is expanding beyond carbonated soft drinks into dairy/functional beverages, energy drinks and other categories. 4. Alcoholic beverages: This is a new optionality. VBL's board approved entry into ready-to-drink alcoholic beverages through a wholly owned subsidiary, Kiva Spirits and Company, led by a former Diageo executive. 🔴 Key risks Competition from Campa Cola: Reliance's Campa Cola is becoming an important competitor in India's soft-drink market. The recent Q1 disappointment triggered concerns that competitive intensity and international acquisitions could pressure margins. Margin pressure: Although revenue grew ~21%, profit grew only ~15.5%. The Twizza integration and international expansion can initially dilute margins. Valuation: VBL has historically traded at a premium because of its PepsiCo relationship and strong growth. Therefore, even a good business can see a sharp correction if earnings growth falls below expectations.