Varun Beverages Limited (NSE: VBL) is one of India’s most successful beverage companies and the largest PepsiCo franchisee outside the United States. With a strong presence across India and growing operations in international markets, the company has become a favorite among long-term investors who look for steady, compound-style returns.
As of October 2025, VBL’s share price hovers around ₹461, giving it a market capitalization of approximately ₹1.56 lakh crore. Even though the beverage industry recently faced challenges like heavy monsoons, weather-related demand swings, and election-season disruptions, Varun Beverages has continued to deliver solid performance.
Its 17% TTM (trailing twelve months) revenue growth and 18% profit growth show the strength of its brands, its expanding distribution network, and its high-efficiency manufacturing model.
With rising soft-drink consumption, premiumization trends, and growing rural penetration, investors see VBL as a company that could continue delivering sustained growth in the coming decade.
In this detailed analysis, we’ll discuss VBL’s fundamentals, future growth drivers, and year-wise share price targets from 2025 to 2050 to help investors evaluate long-term potential.
About the Company
Varun Beverages Limited is engaged in manufacturing, bottling, and distributing PepsiCo’s beverage portfolio, including Pepsi, Mountain Dew, Mirinda, Tropicana, Aquafina, and 7UP. It operates across India, Nepal, Sri Lanka, and parts of Africa.
VBL contributes over 90% of PepsiCo India’s beverage volumes, supported by over 90+ manufacturing facilities and a vast distribution network reaching over 3 million outlets. The company’s growth strategy focuses on expanding rural penetration, introducing low-sugar variants, and scaling energy and hydration categories like Gatorade and Sting.
Fundamental Analysis
Revenue & Profit Trends
Over the past five years, Varun Beverages has showcased remarkable consistency:
- 5-year Revenue CAGR: ~23%
- 5-year Profit CAGR: ~41%
- FY2025 TTM Sales: ₹21,078 Cr (+17% YoY)
- TTM Net Profit: ₹2,881 Cr (+18% YoY)
Profit growth continues to outpace revenue, driven by operating margin expansion (24–28%) and better cost control.
Valuation Metrics
- P/E Ratio (TTM): ~54.8x
- ROE: 22.5%
- ROCE: 24.8%
- EPS (TTM): ₹8.50
While valuations appear premium, they are justified by the company’s strong return ratios and compounding track record.
Balance Sheet Strength
- Total Assets: ₹24,716 Cr
- Net Worth: ₹18,363 Cr
- Borrowings: ₹2,138 Cr (down 18% YoY)
- Debt-to-Equity: ~0.12x
VBL’s balance sheet remains rock solid, reflecting healthy deleveraging and ample room for future capex without dilution.
Shareholding Pattern (June 2025)
- Promoters (Ravi Jaipuria Group): 63.9%
- FIIs: 21.2%
- DIIs: 10.8%
- Public & Others: 4.1%
Strong institutional participation adds to its stability and long-term confidence.
Past Stock Performance
Varun Beverages has delivered multibagger returns over the past decade — rising nearly 3,000% in 10 years.
In the last five years alone, it has compounded over 35% annually, outperforming both the FMCG and consumer discretionary indices.
While the stock faced some volatility in mid-2025 due to weak monsoon sales, its long-term uptrend remains intact, backed by robust fundamentals and consistent earnings visibility.
Varun Beverages Share Price Target 2025-2050
| Year | Minimum (₹) | Average (₹) | Maximum (₹) |
|---|---|---|---|
| 2025 | 518 | 596 | 746 |
| 2026 | 672 | 740 | 890 |
| 2027 | 952 | 1,020 | 1,180 |
| 2028 | 1,305 | 1,390 | 1,520 |
| 2029 | 1,759 | 1,880 | 2,050 |
| 2030 | 2,324 | 2,500 | 2,720 |
| 2035 | 7,199 | 7,800 | 8,500 |
| 2040 | 11,500 | 12,900 | 14,200 |
| 2045 | 18,000 | 19,800 | 21,500 |
| 2050 | 22,500 | 25,000 | 27,000 |
Varun Beverages Share Price Target & Prediction 2025, 2026, 2027, 2028, 2029, 2030, 2035, 2040, 2045, and 2050
Varun Beverages Share Price Target 2025
After a softer Q3 due to monsoon-driven volume decline, Varun Beverages is expected to rebound strongly in Q4 with festive and winter-season demand. With TTM earnings growth of ~18% and improving sales traction, the stock may trade in the range of ₹518–₹746 in 2025.
Varun Beverages Share Price Target 2026
Expansion of PepsiCo’s beverage portfolio, along with new SKUs such as low-sugar and energy drink variants, is likely to drive 25–30% YoY profit growth. The stock could move toward ₹740–₹890 on average.
Varun Beverages Share Price Target 2027
As international operations across Africa, Nepal, and Morocco scale up and capacity utilization exceeds 85%, strong EPS growth near 30% may push the stock toward ₹1,180.
Varun Beverages Share Price Target 2028
With consistent double-digit revenue growth and stable raw material pricing, VBL could consolidate within ₹1,300–₹1,520, supported by efficient distribution and brand dominance.
Varun Beverages Share Price Target 2029
Market share expansion in tier-2/3 cities and rural geographies could drive another robust year of growth, taking the target range to ₹1,880–₹2,050.
Varun Beverages Share Price Target 2030
Assuming sustained 20–25% CAGR and steady EBITDA margins, the stock may surpass ₹2,500 by 2030 — backed by PepsiCo’s aggressive global bottling strategy.
Varun Beverages Share Price Target 2035
With continued product innovation, potential acquisitions, and deeper Asian penetration, VBL could trade near ₹7,800–₹8,500, representing significant multiyear expansion.
Varun Beverages Share Price Target 2040
Long-term compounding at ~20% CAGR may allow VBL to reach ₹12,000–₹14,000, driven by scale benefits and higher per-capita beverage consumption.
Varun Beverages Share Price Target 2045
As beverage consumption in India and Africa approaches global benchmarks, the company could command valuations around ₹19,800–₹21,500, reflecting its leadership position.
Varun Beverages Share Price Target 2050
By 2050, assuming strong execution and enduring brand power, VBL may exceed ₹25,000, establishing itself among the most valuable FMCG bottlers globally.
Growth Drivers
- PepsiCo Partnership Expansion: Exclusive bottling rights across multiple countries ensure strong revenue visibility.
- Rural & Tier-2 Market Penetration: Increasing affordability and rising beverage demand in small towns.
- Product Diversification: Expansion into juices, hydration, and low-calorie beverages.
- Operational Efficiency: Automation and modernized bottling plants improving margins.
- Global Expansion: Entry into Africa, Nepal, and South Asia driving geographic diversification.
- Sustainability Push: Water conservation and green energy initiatives improving ESG perception.
Expert Views
- Anand Rathi: “Varun Beverages remains a structural growth story with 15–20% long-term CAGR potential.”
- Deven Choksey: “Attractive buy-on-dips opportunity; premium valuation justified by growth momentum.”
- ICICI Direct: “Strong earnings trajectory and deleveraging make VBL a preferred FMCG compounder.”
Consensus targets indicate a moderate to strong bullish outlook for 2025–2030.
Risks & Challenges
- Volatility in sugar, PET resin, and packaging costs.
- Seasonal demand dependency (Q1–Q2 heavy).
- Rising competition from Coca-Cola and regional brands.
- Currency and geopolitical risks in African operations.
- ESG-related challenges in plastic usage and water intensity.
Investment Suitability
Varun Beverages suits long-term investors seeking steady compounding and sector leadership.
Ideal for portfolios focusing on consumer growth, FMCG stability, and emerging market expansion.
Short-term traders should monitor quarterly earnings and raw material trends, while long-term investors can accumulate during corrections.
FAQs
1. What will be Varun Beverages’ share price in 2030?
By 2030, Varun Beverages’ share price is projected between ₹2,324–₹2,720, driven by 20–25% CAGR growth and international expansion.
2. Can Varun Beverages reach ₹2,000 by 2028?
Yes, if revenue and margin growth sustain at current trends, it could touch ₹2,000 levels by 2028–2029.
3. Is Varun Beverages good for long-term investment?
Absolutely. With strong fundamentals, leadership in its sector, and consistent profit growth, VBL is a proven long-term wealth creator.
Conclusion
Varun Beverages continues to stand out as one of India’s fastest-growing consumer companies, benefiting from demographic tailwinds, rising disposable income, and PepsiCo’s trust. While short-term fluctuations are natural due to seasonality and raw material costs, its long-term trajectory remains solid.
For patient investors, VBL represents a premium FMCG compounder capable of delivering superior risk-adjusted returns through 2030 and beyond.
Sources
- NSE Fillings
- Varun Beverages Financial Reports
