The Varun Beverages share price has risen 2% to an intra-day high after it reported a strong set of quarterly earnings for the fourth quarter of FY26. Most brokerages believe that the stock is well placed for the next quarter on the back of likely demand emerging due to heatwaves and El Niño.
Nuvama on Varun Beverages
Despite unseasonal rains in March across North and East India, Varun Beverages reported a strong quarterly performance, said Nuvama Institutional Equities. The robust earnings led the brokerage house to increase the target price to Rs 600 from Rs 558, an upside of 15.6% from the current market price, and maintain its ‘Buy’ rating on the stock.
The El Niño effect in H1FY27 is likely to drive severe heatwaves, supporting strong growth across summer categories. “Hence, we are tweaking up CY27–28 EPS estimates by 2–4%,” said Nuvama.
JM Financial on Varun Beverages
JM Financial has raised the target price to Rs 600 from Rs 470, looking at an upside of 28% from the current market price. The brokerage maintained its ‘Buy’ rating on the stock.
Varun Beverages’ Q1CY26 sales and EBITDA were ahead of estimates. There were a lot of positive factors contributing to this surge. JM Financial said that India volumes increased by 14.4% (on a high base of 15.5%), and momentum is likely to sustain going ahead, considering strong summers and a weak base.
Also, India’s business margins remained strong, which means no impact of volume upsizing or competitive activity was seen in the quarter.
Lastly, the impact of input cost inflation is unlikely to be material as Varun Beverages is well covered for the season, which, along with lower discounts and better mix and leverage benefit, should help sustain margins (especially for the India business).
Motilal Oswal on Varun Beverages
Motilal Oswal Financial Services said that Varun Beverages is well placed for healthy Q2 CY26 growth due to the El Niño-led heatwave, along with tailwinds from the Twizza and Crickley consolidations.
This led the brokerage to raise the target price to Rs 600, implying a lift of over 16% from the current market price, while maintaining its ‘Buy’ rating.
The company posted a strong quarter with 16% YoY volume growth, led by strong volume growth in India and in international territories.
Further, net realisation per case improved 1.6% at the consolidated level, fueled by realisation growth in international territories (due to favourable currency movement), which was partially offset by 1.5% dip in net realisations in India (due to pack upsizing and targeted price-point launches).
Varun Beverages share price performance
The share price of Varun Beverages has risen 6.3% in the last five trading days. The stock has given a return of 35% in the last one month and 14% in the past six months. Varun Beverages’ share price has, however, declined 2.75% over the previous one year.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.