Varun Beverages Stock Rises 1%, Extends Quarterly Gains Amid Broader Demand Optimism and Favorable Summer Season Trends

Varun Beverages Stock Rises on Strong Q4 FY26 Results and Positive Brokerage Commentary

Varun Beverages Ltd shares rose in early trade on Tuesday, building on the previous session's gains. The 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 company's Q4 FY26 results showed a strong performance, with consolidated net profit rising 20.1 percent year-on-year to Rs 8,787 crore. 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.

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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 with a target price of Rs 600 per share, expecting healthy demand during the summer season in India. 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.

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.