Varun Beverages: India disappoints; Overseas delivers: Q2CY26 Review

Research evidence excerpt

Varun Beverages: India disappoints; Overseas delivers: Q2CY26 Review

J P M O R G A N Asia Pacific Equity Research

29 July 2026

Varun Beverages Overweight

VARB.NS, VBL IN

India disappoints; Overseas delivers: Q2CY26 Review Price (28 Jul 26):Rs430.00

▼Price Target (Jun-27):Rs530.00

Prior (Jun-27):Rs565.00

On the earnings call (First Take), management tried to address key investor concerns,

though a few pressure points remain visible. Even as domestic volume growth is Consumer, Retail, Media

trending 20%+ in most months, weather-related disruptions can still weigh on Latika Chopra, CFA AC

reported growth, as witnessed in Q2 (April flat). Management sounded confident of (91-22) 6157-3584

sustaining healthy double-digit growth, though delivery is increasingly reliant on latika.chopra@jpmorgan.com

sharper Rs20 propositions and scale-up of adjacencies (hydration/value added dairy). Himanshu Singh

Competitive intensity remains elevated, particularly at lower price points (aiding (91-22) 6157-3610

himanshu.x6.singh@jpmorgan.com

category expansion), and VBL is prioritizing profitable growth over aggressively

Saransh S Gokhale

chasing low-margin Rs10 volumes. International territories continue to fare well, led

(91-22) 6157 3578

by broad-based Africa momentum, though Twizza integration/scale-up and Kenya saransh.gokhale@jpmchase.com

expansion (post acquisition) will be key watch points. Margin outlook remains J.P. Morgan India Private Limited, J.P. Morgan

relatively comfortable given Q3 raw material cover and operating efficiencies, Tower,Registration:Santacruz(E),INH000001873,Mumbai (91-22)- 400098,6157-3000.SEBI

buhigher logistics costs and input inflation remain key monitorables. We cut our

CY26/CY27E EPS estimates by ~1-2% as we bake in lower domestic volume/