Varun Beverages Shares Fall 2% Despite Strong Q3 Results; Brokerage Remains Bullish, Check Target Price

Shares of Varun Beverages Limited stayed under pressure in Wednesday's trading session despite the company reporting strong Q3 FY26 earnings.

Varun Beverages' share price today opened at Rs. 454 apiece on the NSE, slightly higher than Tuesday's closing price. However, the stock soon came under selling pressure and slipped over 2% to hit an intraday low of Rs. 438.05.

At the time of writing, the stock had recovered part of its losses and was trading at Rs. 443.55, still down 1.67%, as investors appeared to book profits despite healthy quarterly numbers.

The main reason behind the drop in Varun Beverages shares today, is the profit booking and broader market weakness even as the company delivered double-digit growth across key financial metrics in the December quarter.

Varun Beverages Q3 FY26 Results

For the quarter ended December 2025, Varun Beverages Q3 FY26 results (consolidated, year-on-year) showed strong growth. The company's revenue was Up 14% at Rs. 4,204 crore from Rs. 3,689 crore last year. The EBITDA rose 10.2% YoY to Rs. 639 crore. While the EBITDA Margin slightly from to 15.2% from 15.7% in the same period last year. However, the Net Profit for the company jumped 36.2%YoY to Rs. 252 crore.

Varun Beverages Dividend Announcements

The company also announced a final dividend of Rs. 0.50 per equity share, subject to approval by shareholders at the upcoming annual general meeting (AGM).

Brokerage View: Buy Rating Maintained

Despite the recent correction, brokerages remain positive on the stock. Antique Stock Broking Limited gave a 'BUY' rating on Varun Beverages with a revised target price of Rs. 610.

According to the report, management expects calendar year 2026 (CY26) performance to improve, supported by a lower base effect and expectations of a stronger summer season, which is typically a peak demand period for beverages.
"The company has guided for double-digit volume and value growth in CY26. Varun Beverages does not expect any major capex in CY26 as most capacity expansion has already been completed. We have broadly maintained our estimates and retain a BUY rating with a revised target price of Rs. 610 (earlier Rs. 600), based on a P/E multiple of 50x 1HCY27 EPS, in line with its three-year average," the brokerage said.

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