Varun Beverages climbs 1.6% as analysts back volume story despite margin squeeze
The move comes a trading session after the PepsiCo bottler reported its Q3CY26 results on October 30. The stock remains well off its 52-week high of ₹555.80 hit in June, and is down about 19 per cent year-to-date.
Varun Beverages shares rose 1.61% to ₹398.30 on Monday, as analysts continued to support the stock despite margin concerns. The company reported strong trading volume in Q3CY26, with revenue up 33.2% year-over-year to ₹66,076 million. While gross margins contracted 334 basis points to 53.1%, the increase in volume was attributed to a 29% rise in international sales, mainly driven by Twizza.
The target prices were lowered by brokerages to reflect the margin squeeze, with HSBC maintaining a Buy rating at ₹540 and JM Financial cutting its target to ₹485. Overall, the market reaction suggests that Varun Beverages is navigating the challenges of higher costs and lower margins in the current environment.
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