28 Apr , 2026 By : Debdeep Gupta
Varun Beverages Ltd shares rose in early trade on Tuesday after strong Q4 FY26 results and positive brokerage commentary, with the stock building on the previous session’s gains.
In the morning trade, Varun Beverages stock was trading at Rs 525.2, up 1.22 percent for the day, after rising 5.8 percent in the previous session following its earnings announcement. The stock is down 1.7 percent over the past one year, compared with a 1 percent decline in the Nifty 50.
Brokerages remained bullish on the stock, citing strong demand trends and growth visibility. However, their views were split on valuations.
HSBC maintained a ‘hold’ rating on Varun Beverages stock with a target price of Rs 600 per share. It cited a strong start to the year, expecting healthy demand during the summer season in India. The brokerage highlighted that the industry landscape is evolving and investments in market development tools will be crucial.
Jefferies retained a ‘buy’ rating with a target price of Rs 615 per share, citing a strong quarter supported by over 14 percent volume growth in India. The brokerage highlighted stable margins despite competitive concerns and said the international business also delivered a strong performance. It added that management remains positive on growth and margins, subject to seasonal factors, with a focus on expanding the overall market rather than competing aggressively.
Yesterday, Varun Beverages reported a strong January-March quarter performance, with consolidated net profit rising 20.1 percent year-on-year to Rs 8,787 crore, supported by robust volume growth across markets. Revenue from operations increased 18.1 percent to Rs 65,742 crore, while EBITDA grew 21 percent to Rs 15,289 crore, with margins expanding to 23.3 percent.
Operationally, consolidated sales volumes rose 16.3 percent to 363.4 million cases, driven by 14.4 percent growth in India and 21.4 percent growth in international markets. The company also saw improvement in gross margins, aided by favourable product mix and raw material management. Its domestic realisations were impacted by volume-led initiatives such as pack upsizing and price-point launches.
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