Results: Varun Beverages Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, Varun Beverages Limited (NSE:VBL) recently reported its third-quarter numbers. The result was positive overall - although revenues of ₹49b were in line with what the analysts predicted, Varun Beverages surprised by delivering a statutory profit of ₹2.19 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Varun Beverages from 25 analysts is for revenues of ₹251.8b in 2026. If met, it would imply a meaningful 19% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 19% to ₹10.49. Before this earnings report, the analysts had been forecasting revenues of ₹257.5b and earnings per share (EPS) of ₹10.61 in 2026. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

View our latest analysis for Varun Beverages

The consensus has reconfirmed its price target of ₹597, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Varun Beverages' market value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Varun Beverages at ₹744 per share, while the most bearish prices it at ₹450. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Varun Beverages' past performance and to peers in the same industry. We would highlight that Varun Beverages' revenue growth is expected to slow, with the forecast 15% annualised growth rate until the end of 2026 being well below the historical 24% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% annually. Even after the forecast slowdown in growth, it seems obvious that Varun Beverages is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, earnings are more important to the intrinsic value of the business. The consensus price target held steady at ₹597, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Varun Beverages. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Varun Beverages going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.