Varun Beverages Limited (VBL.NS) stock analysis
In our weekly check, Varun Beverages Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3.
About Varun Beverages Limited
Varun Beverages Limited is a Consumer Defensive company (Beverages - Non-Alcoholic) based in India, listed on NSE as VBL.NS.
What our checks show for VBL.NS
Red flags
- Operating profit does not cover the interest bill (0.2x): interest is paid from cash or new debt.
- The gross margin fell by 14.8 points, to 39.4%: costs are rising faster than prices.
- The dividend takes 1587% of profit: little cushion if profit falls.
Warning signs
- Analysts expect the net margin to shrink by 0.2 points from today's 14%.
- Free cash flow is only 3.3% of revenue.
- The price is 38.2 times earnings (P/E): the market already pays for a lot of future growth.
- The stock has fallen as much as 43% from a peak. Would you have held through that?
- The stock is still below its previous peak.
Strengths
- Net debt is only 0.1x a year of EBITDA: the balance sheet has room.
- The net margin rose by 6.1 points over 5 years, to 14%.
- Analysts expect earnings per share to grow about 14.2% a year over the next years.
- Revenue grew 18.1% a year over the last 3 years.
- Earnings per share grew 24.9% a year over the last 3 years.
- Net profit grew 26.6% a year over the last 3 years.
Next earnings report: 2026-11-02
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Questions
What grade does Varun Beverages Limited (VBL.NS) have?
In our weekly check, Varun Beverages Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of VBL.NS stock?
This week's biggest flags for Varun Beverages Limited: Weak interest cover, Gross margin falling, Dividend stretched. In total 8 of 25 checks show a warning or a red flag.
What does Varun Beverages Limited do?
Varun Beverages Limited is a Consumer Defensive company (Beverages - Non-Alcoholic) based in India, listed on NSE as VBL.NS.
When does Varun Beverages Limited report earnings next?
The next earnings report is expected on 2026-11-02. We re-run the checks every week, so the grade can change after it.
The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.
Updated 2026-10-31
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