India's Varun Beverages rebounds; brokerages call earnings-led selloff 'overdone'

PepsiCo

29/07/2026 09:41

** PepsiCo's biggest bottling partner in India, Varun Beverages, VARB.NS rises as much as 4.27%, biggest intraday rise in three months, to 448.35 rupees 
** VARB partially rebounds from a 7.4% drop on Tuesday after it posted Q1 profit below estimates
** While the volume miss in June quarter is disappointing, we believe the stock has overreacted, with operating profit and profit after tax in-line with expectations despite a sharp rise in packaging and transport costs, says CLSA
** Reiterates its "high conviction outperform" rating
** Kotak says earnings reaction was "overdone", upgrades VARB to "buy" from "add"
** Average rating of 25 analysts tracking VARB is "buy"; median PT is 580 rupees, according to data compiled by LSEG
** VARB is down 8.9% in 2026 so far, slightly outperforming the 10.4% drop in FMCG index .NIFTYFMCG, according to exchange data


 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))