Overview
- Varun Beverages reported a stronger-than-expected March quarter, with broker notes citing about 16% year-on-year revenue growth and double-digit volume gains.
- India volumes grew 14.4% and international volumes rose 21.4% as per Motilal Oswal, while net realisation shifts reflected larger pack sizes in India and firmer pricing overseas.
- The board declared an interim dividend of Rs 0.50 per share and recommended a final dividend of Rs 0.50 per share for FY2026.
- Following the results, Emkay, Motilal Oswal, Nuvama and JM Financial raised earnings estimates and lifted price targets toward roughly Rs 600 to Rs 620, pointing to resilient margins and stronger visibility.
- The stock has climbed about 30% in April and is near its 52-week high, helped by expectations of heatwave-driven demand and recent South Africa moves, including buying The Beverage Company and completing the Twizza deal.