VBL share price targets: Shares of Varun Beverages Ltd (VBL) are in focus on Tuesday, April 28, after the PepsiCo bottler reported better-than-expected revenue growth for the March quarter, along with a resilient bottom line. Following this, a couple of brokerages raised their earnings estimates and target prices. Emkay Global maintained a ‘Buy’ rating on the VBL stock and raised its target price by 15 per cent to Rs 620 from Rs 540, on a 5-6 per cent increase in earnings per share (EPS) estimates, led by an 11 per cent beat in profit after tax (PAT) and the addition of Twizza.

With a favourable climate so far, VBL’s commentary suggested even better growth trends in June quarter till date, which, along with a low base for May and June, bodes well for a strong growth uplift in 2026, Emkay said.

MOFSL said Varun Beverages posted a strong quarter with 16 per cent YoY revenue growth, led by strong volume growth of 14.4 per cent in India and 21.4 per cent in international territories. 

Net realisation per case improved 1.6 per cent at the consolidated level in Q4, fuelled by realisation growth in international territories, which was partially offset by 1.5 per cent dip in net realisations in India due to pack upsizing and targeted price-point launches.

El Nino effect

"Going forward, VBL is well placed for healthy Q2CY26 growth due to the El Niño-led heatwave, along with tailwinds from the Twizza and Crickley consolidations. Factoring in the consolidation of Twizza and Crickley and higher-than-expected volumes, we raise our CY26/CY27 earnings estimates by 4 per cent/6 per cent. We reiterate our Buy rating with a target price of Rs 600," MOFSL said.

Elara Securities upped its 2026, 2027 EPS estimates by 3.1 per cent and 5.2 per cent, respectively, led by an increase in Ebitda margin by 67 bps in 2006 and 64 bps in 2027. 

"Hence, we raise our target price to Rs 560 (from Rs 535), based on 45x (unchanged) December 2027E P/E, on margin resilience in both India and international businesses. We introduce CY28E estimate. Maintain Accumulate," Elara said.

Nuvama Institutional Equities said the El Nino effect in H1FY27 is likely to drive severe heatwaves, supporting strong growth across summer categories. It tweaked 2027–28 EPS estimates by 2-4 per cent, saying cost inflation remained a key risk. 

"We roll forward estimates to 2028, lifting TP to Rs 600 (from Rs 558). At CMP, the stock trades at 45 times/40 times CY27E/28E PE; retain ‘BUY’," it said.

Emkay said VBL’s ahead-of-the-curve investment in distribution and capacity expansion is a key competitive edge when the global supply chain is encountering disruption. Free cash flow generation is likely to significantly improve, as 2026's organic capex is expected at Rs 500 crore, it said.

Varun Beverages dividend
The board of directors also recommended a final dividend of Rs 0.50 per equity share with a face value of Rs 2 per share, subject to the necessary approvals.

"The payment of interim dividend of Rs 0.50 per equity share for the financial year 2026 on the total issued, subscribed and paid-up 338,20,94,394 equity shares of the nominal value of Rs 2 each," the company said. 

The company fixed the record date on Friday, May 1, 2026. The final dividend will be paid on Tuesday, May 5, to the eligible shareholders.