Varun Beverages rebounds 42% as Q1 profit jumps 20%; brokerages target Rs 615-620
VBL stock recovered sharply from March lows on a strong Q1 print (PAT Rs 878.7 cr, +20.1% YoY; revenue Rs 6,574.2 cr, +18.1%), South Africa Beverage Company buyout, and PepsiCo's India bottling license extension to 2049. YES and Emkay raised targets to Rs 615-620; VBL plans 0.5mn outlet adds in CY26.
What happened
Varun Beverages stock rebounded 42% on strong Q1 earnings, summer demand, South Africa Beverage Company acquisition, and PepsiCo extending its India bottling
Key facts
- 42% rebound from 52-week low
- Q1 net profit Rs 878.7 cr (+20.1% YoY)
- Q1 revenue Rs 6,574.2 cr (+18.1% YoY)
- 0.5 mn outlet additions on 4 mn base
- YES Securities TP Rs 615
- Emkay TP Rs 620
- PepsiCo license extended to 2049
Why this matters
The South Africa Beverage Company buyout signals VBL's appetite for inorganic geographic expansion, making adjacent emerging-market bottlers and distribution assets logical next targets to scout.