Shares of Varun Beverages Ltd (VBL), a key bottler for PepsiCo, began trading ex-dividend today, April 8, 2026. The company had previously declared a final dividend of Rs 0.50 per equity share for the fiscal year 2025, with today marking the record date for this payout.
Following the announcement, Varun Beverages shares demonstrated robust performance, climbing 4% to trade at Rs 417 against a previous close of Rs 400.65. Market activity saw 1.04 lakh shares change hands, generating a turnover of Rs 4.32 crore. The company's market capitalization stood at Rs 1.41 lakh crore.
Analyst Outlook and Price Targets
Market analysts have provided varied insights and price targets for Varun Beverages. Jigar S Patel from Anand Rathi noted key technical levels, stating, "Support will be at Rs 400 and resistance at Rs 420. A decisive move above the Rs 420 level may trigger a further upside of Rs 435. The expected trading range will be between Rs 400 and Rs 435 in the short-term."
Technically, the stock's Relative Strength Index (RSI) was recorded at 42.5, indicating it is neither in an oversold nor overbought zone. With a one-year beta of 0.7, Varun Beverages shares exhibit relatively low volatility.
Ambit Capital's Positive Forecast
Ambit Capital maintains a bullish stance on Varun Beverages, setting a price target of Rs 501. The brokerage anticipates significant volume growth across VBL's beverage portfolio, driven by ongoing expansion efforts in India and Africa. Improved profitability is also expected, fueled by increased scale and strategic backward integration initiatives.
Ambit projects strong revenue growth for Varun Beverages in the coming years, supported by an expanding product range that now includes energy drinks, hydration solutions, juices, and initial ventures into snacks and alcoholic beverages. The firm believes VBL's core business trajectory remains solid, with primary risks stemming from potential input cost pressures and competitive pricing dynamics. Ambit Capital highlighted, "VBL is transitioning from a regional bottler to a diverse global food and beverage compounder."
About Varun Beverages
Varun Beverages Limited is a prominent beverage company and one of the largest franchisees of PepsiCo globally. The company is responsible for producing and distributing a wide array of carbonated soft drinks (CSDs), along with a diverse selection of non-carbonated beverages (NCBs), including packaged drinking water, all sold under trademarks owned by PepsiCo.