Varun Beverages

** PepsiCo's biggest bottling partner in India, Varun Beverages, VARB.NS rises as much as 4.27%, biggest intraday rise in three months, to 448.35 rupees

** VARB partially rebounds from a 7.4% drop on Tuesday after it posted Q1 profit below estimates

** While the volume miss in June quarter is disappointing, we believe the stock has overreacted, with operating profit and profit after tax in-line with expectations despite a sharp rise in packaging and transport costs, says CLSA

** Reiterates its "high conviction outperform" rating

** Kotak says earnings reaction was "overdone", upgrades VARB to "buy" from "add"

** Average rating of 25 analysts tracking VARB is "buy"; median PT is 580 rupees, according to data compiled by LSEG

** VARB is down 8.9% in 2026 so far, slightly outperforming the 10.4% drop in FMCG index .NIFTYFMCG, according to exchange data

(Reporting by Bharath Rajeswaran in Bengaluru)

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Recasts throughout with analysts' estimates, updates shares

July 28 (Reuters) - Varun Beverages VARB.NS reported quarterly profit below average analyst estimates on Tuesday as PepsiCo's PEP.O biggest bottling partner in India saw rising competition and margin pressure, sending its shares down nearly 9%.

Here are some key details:

• The company reported a consolidated net profit of 15.21 billion rupees ($158.71 million), below estimates of 15.33 billion rupees, according to data compiled by LSEG.

• Varun Beverages is facing intensifying competition in India's ready-to-drink market as established rivals and new entrants expand aggressively across soft drinks, juices, and packaged water.

• Shares of the company tanked as much as 8.9% after results before trimming some losses to trade 7.6% lower.

• Overall revenue, however, rose 20.8% to 86.51 billion rupees during this period.

• Consolidated sales volume grew by 19.8%, however the company last year had noted that it saw unusually high and unseasonal rainfall in India, resulting in weaker demand and volume growth in the year-ago period.

• Varun Beverages' operating profit margin fell 76 basis points from last year due to the consolidation of low-margin South African unit Twizza, it said.

($1 = 95.8325 Indian rupees)

(Reporting by Mridula Kumar and Saikeerthi in Bengaluru; Editing by Eileen Soreng and Nivedita Bhattacharjee)

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** Shares of Varun Beverages VARB.NS fall 2.3% to 483.35 rupees

** VARB's subsidiary VBL Industries (Kenya) to acquire promoter group co Devyani Food Industries (Kenya) for $32 million

** CLSA says acquisition will enable VARB to enter Kenya and deepen its penetration in the East African region

** JP Morgan says acquisition supports VARB's geographic diversification strategy by establishing a scalable operational base in Kenya and the Eastern African region

** BofA says acquired business may eventually be more relevant for its infrastructure, manufacturing base and go-to-market network rather than for its current earnings profile

** YTD, VARB down ~1%

(Reporting by Vijay Malkar in Bengaluru)

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** Varun Beverages VARB.NS shares rise 1.27% to 538.30 rupees

** Partners with Japan's Asahi Group 2502.T to manufacture, distribute and sell CALPIS dairy-based beverage brand in India

** CLSA ("high-conviction outperform", TP: 654 rupees) says VARB's manufacturing and distribution network should allow it to scale third-party brands efficiently

** Axis Capital ("add", TP: 585 rupees) says partnership could trigger potential re-rating, though near-term revenue contribution is likely to be modest

** Goldman Sachs ("buy") says alliance could open opportunities in adjacent categories and geographies and tap rising demand for healthier drinks

** Average rating by 25 analysts on stock is "Buy", median TP 596.50 rupees - LSEG-compiled data

** YTD stock up about 9.5%

(Reporting by Surbhi Misra in Bengaluru)

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June 18 (Reuters) - Varun Beverages Ltd VARB.NS:

• VARUN BEVERAGES - ASAHI GROUP ENTERS ALLIANCE WITH VARUN BEVERAGES FOR CALPIS BRAND IN INDIA

Source text: ID:nBSE9frPSq

Further company coverage: VARB.NS

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** Shares of Varun Beverages VARB.NS rise 2.2% to 531.20 rupees

** Pepsi India bottler extends its exclusive bottling deal with PepsiCo PEP.O for 10 years

** VARB, one of PepsiCo's largest bottlers outside the U.S., says new agreement also removes restriction from operating solely as a special purpose vehicle for PepsiCo

** Avg rating of 25 analysts on VARB at "buy"; median PT is 596.50 rupees - LSEG-compiled data

** YTD, stock up 8.4%

(Reporting by Kashish Tandon in Bengaluru)

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May 21 (Reuters) - India's Varun Beverages VARB.NS said on Thursday it has extended its exclusive bottling agreement with PepsiCo PEP.O for India by 10 years.

• Varun Beverages said the exclusive bottling appointment and trademark license agreement has been extended until April 30, 2049, from April 30, 2039.

• The company, one of PepsiCo's largest bottling partners outside the U.S., said the earlier agreement restricted it to functioning solely as a special purpose vehicle (SPV) for PepsiCo’s business. This restriction has now been removed in the revised agreement.

• The earlier agreement restricted Varun Beverages "from carrying out any activity other than to act as an SPV for PepsiCo business, now this requirement is deleted in the revised EBA," the company said.

• It did not disclose further details on the revised agreement.

• Last month, Varun Beverages reported a higher profit for the March quarter, supported by strong demand, with India sales volumes rising by over 14%.

(Reporting by Nishit Navin; Editing by Devika Syamnath)

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Corrects to say first-quarter, not fourth-quarter, in headline and bullet 2

** PepsiCo PEP.O bottler Varun Beverages' VARB.NS shares rise 2.2% to 501.25 rupees

** Co reports higher Q1 profit boosted by strong demand across domestic and international markets

** Net profit rises 20.1% to 8.72 billion rupees in the quarter ended March 31

** Revenue from operations rises 18.4% to 67.22 billion rupees, and expenses jump 9.8%

** "Demand remained encouraging during the quarter," chairman Ravi Jaipuria says

** Sales volumes in India rise 14.4%, while international markets post 21.4% growth

** Twenty-two of 25 brokerages rate the stock "buy" or higher; their median PT is 550 rupees

** VARB trades at a forward 12-months PE of 47.63 vs industry median of 47

** YTD, stock up 5.6% vs a 7.1% decline in the BSE Fast Moving Consumer Goods Index .BSESCGIP

(Reporting by Abhinav Parmar in Bengaluru)

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April 27 (Reuters) - Varun Beverages Ltd VARB.NS:

• MARCH-QUARTER CONSOL NET PROFIT 8.72 BILLION RUPEES

• MARCH-QUARTER CONSOL REVENUE FROM OPERATIONS 67.22 BILLION RUPEES

Source text: [ID:]

Further company coverage: VARB.NS

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April 15 (Reuters) - Varun Beverages Ltd VARB.NS:

• VARUN BEVERAGES - BUYS 29.99% EQUITY IN FPEL HR2 ENERGY PRIVATE LIMITED

• VARUN BEVERAGES - ACQUISITION MADE FOR 15.8 MILLION RUPEES

Source text: ID:nBSE2lQWw6

Further company coverage: VARB.NS

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March 17 (Reuters) - Varun Beverages Ltd VARB.NS:

• ACQUISITION OF 100% EQUITY STAKE OF CRICKLEY DAIRY PROPRIETARY

• BEVCO WILL ACQUIRE 100% STAKE OF CRICKLEY FOR AN ENTERPRISE VALUE OF 1.31 BILLION RUPEES

Source text: ID:nBSEw1FnS

Further company coverage: VARB.NS

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Feb 3 (Reuters) - Varun Beverages Ltd VARB.NS:

• VARUN BEVERAGES DEC-QUARTER CONSOL NET PROFIT 2.52 BILLION RUPEES

• VARUN BEVERAGES DEC-QUARTER CONSOL REVENUE FROM OPERATIONS 43.35 BILLION RUPEES

Source text: [ID:]

Further company coverage: VARB.NS

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** Shares of Varun Beverages VARB.NS sink 9% over two sessions, their biggest such decline since late February

** Pespi India bottler's stock dips 3.7% on Friday; it fell 5.7% on Thursday after effective tax on sugary carbonated drinks was unchanged at 40%

** Still, Nomura said it does not see any impact for carbonated beverage companies

** 22 analysts covering VARB have a "buy" rating on avg; median PT is 595 rupees - data compiled by LSEG

** YTD, stock down 27%, the biggest loser on FMCG index .NIFTYFMCG

(Reporting by Urvi Dugar)

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Sept 4 (Reuters) - Varun Beverages Ltd VARB.NS:

• INCORPORATED JV COMPANY WHITE PEAK REFRIGERATION

Further company coverage: VARB.NS

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** India's consumer goods stocks climb 3.2%, the only major sub-index set to close higher this week

** Nifty FMCG .NIFTYFMCG index set for its best week in nearly four months

** Varun Beverages VARB.NS gains most, jumping 8.1% for the week

** Index heavyweights Hindustan Unilever HLL.NS and Britannia BRIT.NS climb 5.6% and 4.3%

** Q1 earnings for VARB and HLL topped estimates, fuelling hopes of a gradual demand recovery

** Dabur DABU.NS forecast higher full-year sales growth, rises 5.5% this week

** Top-weight ITC up 2% this week, due to report results after market close on Friday

** Ten stocks on index rated "buy" or higher, rest "hold" - data compiled by LSEG

** Nifty FMCG index pares YTD losses to 0.9%, but trails blue-chip Nifty 50's .NSEI 4.3% rise this year

(Reporting by Nandan Mandayam in Bengaluru)

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** Varun Beverages VARB.NS extends gains for second day post Q2 results on Tuesday; rises 2.9% to 526 rupees

** Pepsi India bottler's Q2 consol net profit rises 5% y/y, beating analysts' estimate

** Analysts say rise was on stronger margins, good performance in international markets

** Antique, which maintains "buy", sees growth in energy drinks and dairy products categories, as well as capacity expansion supporting volume and margin expansion

** Jefferies, which also has "buy", says competition isn’t a major concern for co; raises EPS estimates by 3% and hikes TP to 600 rupees from 560 rupees

** Stock rated "buy" on avg; median PT is 600 rupees - data compiled by LSEG

** YTD, VARB down 19.8%

($1 = 87.1900 Indian rupees)

(Reporting by Yagnoseni Das in Bengaluru)

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** Varun Beverages VARB.NS gains 4% to 506.5 rupees

** Pepsi India bottler's Q2 consol net profit rises to 13.17 bln rupees ($151.7 mln), ahead of analysts' estimate of 11.30 bln rupees, per data compiled by LSEG

** Co beats estimates as cost control measures helped offset damp bottled beverage sales exacerbated by early monsoon rains

** Stock set to rise most in a session since May 23

** More than 17.5 mln shares traded, 2.2x the 30-day moving avg

** Stock rated "buy" on avg; median PT is 600 rupees, per data compiled by LSEG

** YTD, VARB falls ~21%

($1 = 86.8110 Indian rupees)

(Reporting by Anuran Sadhu in Bengaluru)

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May 29 (Reuters) - Varun Beverages Ltd VARB.NS:

• STARTS COMMERCIAL PRODUCTION AT MEGHALAYA FACILITY

Source text: ID:nBSE2Dlxbz

Further company coverage: VARB.NS

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** Goldman Sachs initiates coverage on Varun Beverages VARB.NS with "buy" and PT of 600 rupees

** Pepsi's PEP.O India bottler has multiple drivers to outperform the country's fast-growing ready-to-drink beverages market, says Goldman Sachs

** VARB's execution has led to Pepsi's market share in India growing to 38% in 2024, from 28% in 2015, making India one of Pepsi's top-performing markets worldwide - GS

** Stock trading 0.3% lower on the day

** Brokerage expects VARB to continue to gain market share in fast-growing segments like energy drinks and hydration

** Adds, entry of Reliance Consumer's 'Campa Cola' brand indicates no "disruptive" impact to VARB

** Average rating of 22 analysts on VARB is "buy"; median PT is 615 rupees - data compiled by LSEG

(Reporting by Kashish Tandon in Bengaluru)

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May 1 (Reuters) - Varun Beverages Ltd VARB.NS:

• VARUN BEVERAGES LTD - STARTS COMMERCIAL PRODUCTION AT BUXAR FACILITY

Source text: ID:nBSE9BjK9G

Further company coverage: VARB.NS

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April 22 (Reuters) - Varun Beverages Ltd VARB.NS:

• STARTS COMMERCIAL PRODUCTION AT PRAYAGRAJ FACILITY

Source text: ID:nBSE61bZCB

Further company coverage: VARB.NS

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March 24 (Reuters) - Varun Beverages Ltd VARB.NS:

• VARUN BEVERAGES LTD - STARTS COMMERCIAL PRODUCTION AT KANGRA FACILITY

Source text: ID:nBSE7t5pmG

Further company coverage: VARB.NS

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** Pepsi's India bottler Varun Beverages VARB.NS rise as much as 5.7% to 536 rupees

** DAM Capital says market concerns over Campa Cola's aggressive re-entry, broader weak market sentiments "overstated"

** Adds VARB, with distribution network across more than 4 mln outlets in India, minimizes any material risk from Campa Cola's resurgence by Reliance Consumer Products

** Says VARB has more than 36 manufacturing facilities, 2,800+ distributors, 1.15 million visi-coolers nationwide, which will be capital-intensive and time-consuming for Campa Cola to match

** Projects ~19% CAGR sales growth, supported by ~16% volume growth; EPS expected to grow at ~26% CAGR over CY24-26

** Rates stock "buy", with TP of 670 rupees

(Reporting by Ashish Chandra in Bengaluru)

(([email protected] (+91 7982114624))

** India's Varun Beverages VARB.NS climbs 1.8% to 465.25 rupees

** Brokerage CLSA upgrades Pepsi's India bottler to "high-conviction outperform" from "outperform"

** Says investor concerns over competition with Reliance's Campa are "overdone"; profitablity and growth outlook for VARB remain strong

** CLSA cuts PT to 770 rupees from 802 rupees to factor heightened competition and potential price cuts by VARB

** Analysts covering the stock rate it "buy" on avg; median PT is 677.50 rupees - data compiled by LSEG

** Stock trims YTD losses to 27%

(Reporting by Kashish Tandon in Bengaluru)

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** Shares of Varun Beverages VARB.NS fall as much as 7.7% to 439.9 rupees to lowest level since mid-December 2023

** Stock top loser on Nifty FMCG index .NIFTYFMCG, which is down 0.95%

** The Pepsi bottler says it has extended date of planned acquisition of SBC Beverages Ghana from Ghana Bottling Co to March 31 from February 28

** The transaction is subject to regulatory approvals, including from PepsiCo PEP.O

** More than 13.2 mln shares change hands, 1.7x its 30-day avg

** 21 analysts covering the stock on avg have a "buy" rating; median PT is 677.5 rupees - LSEG data

** Stock has shed 25% so far this year, compared to a 8.6% drop in FMCG index

(Reporting by Ashna Teresa Britto in Bengaluru)

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** Shares of Varun Beverages VARB.NS fall as much as 3.8% to 532.7 rupees after reporting Q4 profit; last down 2.9%

** Pepsi India bottler reports profit below analysts' estimates as higher raw material costs offset growth in volumes

** Trading vols at 1.9x the 30-day avg of 4.76 million shares

** VARB rated "buy" on avg, median PT is 710 rupees - LSEG data

** Stock down about 16% so far this year

(Reporting by Manvi Pant in Bengaluru)

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Jan 2 (Reuters) - Varun Beverages Ltd VARB.NS:

• VARUN BEVERAGES LTD - INVESTS 4.13 BILLION RUPEES IN UNIT

Source text: ID:nBSE4Tg6zj

Further company coverage: VARB.NS

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Dec 16 (Reuters) - Varun Beverages Ltd VARB.NS:

• VARUN BEVERAGES - ACQUIRED 39.93% OF LUNARMECH

Source text: ID:nnAPN2GG4QD

Further company coverage: VARB.NS

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Updates for market open

Dec 3 (Reuters) - Indian shares were little changed at the open on Tuesday as consumer stocks fell after a report of a likely tax hike on cigarettes, tobacco and aerated drinks, offsetting broad-based gains.

The NSE Nifty 50 .NSEI rose 0.09% to 24,300.1 points, as of 9:30 a.m. IST, while the BSE Sensex .BSESN gained 0.05% to 80,287.61.

Eleven of the 13 major sectors logged gains. The more domestically focused small- .NIFSMCP100 and midcaps .NIFMDCP100 added about 0.5% each.

Consumer index .NIFTYFMCG shed 1.3% after a Press Trust of India report said that the goods and services tax (GST) on products such as aerated beverages, cigarettes and other tobacco-related items could be hiked to 35% from the current 28%.

Eleven of the 15 NIFTYFMCG constituents declined, with cigarette maker ITC ITC.NS sliding 2.5% and Pepsi bottler Varun Beverages VARB.NS dropping 3.7%.

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy)

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Nov 22 (Reuters) - Varun Beverages Ltd VARB.NS:

• VARUN BEVERAGES - TO DISINVEST ENTIRE 5.25% STAKE IN ISHARAYS ENERGY TWO FOR 19.20 MILLION RUPEES

Source text: ID:nBSE3mByMd

Further company coverage: VARB.NS

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