Partner at Exencial Research, Exencial Research

Viral Kishorchandra Shah

Partner at Exencial Research

Exencial Research

Equity Bottom-Up

<ul>
<li>Largest PepsiCo bottler outside North America with an India-led but fast-diversifying footprint.</li>
<li>Balance sheet reset completed via Rs. 75 bn QIP; company declared net-debt-free at Dec-24.</li>
<li>CSD-Heavy mix remains, but portfolio is skewing “ better-for-you. ”</li>
</ul>


Largest PepsiCo bottler outside North America with an India-led but fast-diversifying footprint.
Balance sheet reset completed via Rs. 75 bn QIP; company declared net-debt-free at Dec-24.
CSD-Heavy mix remains, but portfolio is skewing “ better-for-you. ”


External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Muted Domestic Demand Offset by Sparkling Growth Overseas: In Q3CY25, the company’s consolidated sales volume grew 2.4% YoY to 273.8 Mn cases.</li><li>In India, volumes remained muted due to prolonged rainfall across several regions, impacting overall demand.</li><li>However, this weakness was partially offset by robust performance in international markets, where volumes increased 9%, led by mid-double-digit growth in South Africa. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Muted Domestic Demand Offset by Sparkling Growth Overseas: In Q3CY25, the company’s consolidated sales volume grew 2.4% YoY to 273.8 Mn cases.In India, volumes remained muted due to prolonged rainfall across several regions, impacting overall demand.However, this weakness was partially offset by robust performance in international markets, where volumes increased 9%, led by mid-double-digit growth in South Africa. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Varun Beverages Ltd - International Fizz Cushions Domestic Slowdown; Maintain BUY

Thematic (Sector/Industry)

<ul><li>As we enter 2026, the Indian equity market stands at a critical inflection point — transitioning from a phase dominated by domestic liquidity to one where earnings delivery, policy alignment, and macro stability will be the primary drivers of returns.</li><li>Indian equities saw divergent performance in 2025, with the Nifty 50 hitting a record high of 26,326 on 1 st December and delivering a 10.2% annual return.</li><li>Broader markets lagged, as the Nifty 500 rose 6.4% and the Nifty smallcap 250 fell 6.4% as of 1 st Dec, 2025. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

As we enter 2026, the Indian equity market stands at a critical inflection point — transitioning from a phase dominated by domestic liquidity to one where earnings delivery, policy alignment, and macro stability will be the primary drivers of returns.Indian equities saw divergent performance in 2025, with the Nifty 50 hitting a record high of 26,326 on 1 st December and delivering a 10.2% annual return.Broader markets lagged, as the Nifty 500 rose 6.4% and the Nifty smallcap 250 fell 6.4% as of 1 st Dec, 2025. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

New Year Picks 2026: Capturing India’s Next Growth Phase

<ul><li>Volume Dips, but Global Growth Cushions the Blow: In Q2CY25, the company’s consolidated sales volume declined 3% YoY to ~390 Mn cases.</li><li>In India, volumes were adversely impacted by abnormally high and unseasonal rainfall throughout the quarter, leading to a 7.1% decline.</li><li>However, this was partially offset by strong performance in international markets, where volumes grew 15.1%, led by a 16.1% increase in South Africa. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Volume Dips, but Global Growth Cushions the Blow: In Q2CY25, the company’s consolidated sales volume declined 3% YoY to ~390 Mn cases.In India, volumes were adversely impacted by abnormally high and unseasonal rainfall throughout the quarter, leading to a 7.1% decline.However, this was partially offset by strong performance in international markets, where volumes grew 15.1%, led by a 16.1% increase in South Africa. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Varun Beverages Ltd - Temporary Topline Blip, Long-Term Growth Intact

External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Varun Beverages (VBL) reported a revenue growth of 38% YoY in 4QCY24, led by volume growth of 38% YoY, which was majorly driven by the volume addition from South Africa and the Democratic Republic of Congo (DRC).</li><li>Excluding these volumes, organic volume growth was ~5% YoY.</li><li>Realization remained flat YoY at INR172/case.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Varun Beverages (VBL) reported a revenue growth of 38% YoY in 4QCY24, led by volume growth of 38% YoY, which was majorly driven by the volume addition from South Africa and the Democratic Republic of Congo (DRC).Excluding these volumes, organic volume growth was ~5% YoY.Realization remained flat YoY at INR172/case.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Varun Beverages - Volume Growth Led by International Market Additions

India

Varun Beverages Limited produces and distributes beverages. The Company offers carbonated soft drinks and non-alcoholic beverages, as well as provides packaged drinking water. Varun Beverages serves customers worldwide.

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Varun Beverages (VBL IN)

Primer : Varun Beverages Limited

PepsiCo's largest bottler outside North America, Varun Beverages, diversifies portfolio towards healthier options and becomes net-debt-free after...

Viral Kishorchandra Shah

Varun Beverages Ltd - International Fizz Cushions Domestic Slowdown; Maintain BUY

Muted Domestic Demand Offset by Sparkling Growth Overseas: In Q3CY25, the company’s consolidated sales volume grew 2.4% YoY to 273.8 Mn cases.

Axis Direct

New Year Picks 2026: Capturing India’s Next Growth Phase

As we enter 2026, the Indian equity market stands at a critical inflection point — transitioning from a phase dominated by domestic liquidity to...

Axis Direct

Varun Beverages Ltd - Temporary Topline Blip, Long-Term Growth Intact

Volume Dips, but Global Growth Cushions the Blow: In Q2CY25, the company’s consolidated sales volume declined 3% YoY to ~390 Mn cases.

Axis Direct

Varun Beverages - Volume Growth Led by International Market Additions

We largely maintain our CY25/CY26 earnings estimates. We value the stock at 55x CY26E EPS to arrive at a TP of INR680. We reiterate our BUY rating...

Motilal Oswal

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52-week Range

Market Cap (USDm)

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Dividend (Yield)

Primer : Varun Beverages Limited

​PepsiCo's largest bottler outside North America, Varun Beverages, diversifies portfolio towards healthier options and becomes net-debt-free after...

Viral Kishorchandra Shah

Varun Beverages Ltd - International Fizz Cushions Domestic Slowdown; Maintain BUY

Muted Domestic Demand Offset by Sparkling Growth Overseas: In Q3CY25, the company’s consolidated sales volume grew 2.4% YoY to 273.8 Mn cases.

Axis Direct

New Year Picks 2026: Capturing India’s Next Growth Phase

As we enter 2026, the Indian equity market stands at a critical inflection point — transitioning from a phase dominated by domestic liquidity to...

Axis Direct

Varun Beverages Ltd - Temporary Topline Blip, Long-Term Growth Intact

Volume Dips, but Global Growth Cushions the Blow: In Q2CY25, the company’s consolidated sales volume declined 3% YoY to ~390 Mn cases.

Axis Direct

Varun Beverages - Volume Growth Led by International Market Additions

We largely maintain our CY25/CY26 earnings estimates. We value the stock at 55x CY26E EPS to arrive at a TP of INR680. We reiterate our BUY rating...

Motilal Oswal

PepsiCo's largest bottler outside North America, Varun Beverages, diversifies portfolio towards healthier options and becomes net-debt-free after...