In February, the company announced that its board considered and approved a final dividend of Rs 0.50 per share with a face value of Rs 2 each for the financial year 2026. In an exchange filing released on Tuesday, Varun Beverages said that its board set April 8 (Wednesday) as the record date for the dividend.
This means that only those shareholders who own the shares of Varun Beverages in their demat accounts on the record date will be eligible for the dividend payment. The dividend will then be paid to the eligible shareholders on and from April 10.
Notably, this follows Rs 0.50 interim dividend payments in August, May and April last year. The company has declared 13 dividends since August 2017, and has a dividend yield of 0.37% at the previous closing price, according to data cited by Trendlyne.
What will support the Pepsi bottler’s long-term growth story?
Varun Beverages saw a subdued 2025 as unusually heavy rainfall led to weak beverage consumption, resulting in modest volume growth of 8% in the consolidated business and 2% in India, with realisations remaining largely flat, Motilal Oswal Financial Services recently said in a report. However, it added that structural drivers such as retail expansion, improved electrification, portfolio diversification, expansion into adjacent consumer products and stronger cold-chain infrastructure will support the Pepsi bottler’s long-term growth story.
Varun Beverages is transitioning from a pure-play beverage bottler to a broader consumer distribution platform, leveraging its network to scale across multiple product categories, the domestic brokerage said, adding that the company’s partnership with Carlsberg signals a potential entry into the beer market in select African markets. “Additionally, by manufacturing visi-coolers, Varun Beverages is vertically integrating its cold-chain capabilities to support long-term growth,” Motilal Oswal further said.
The domestic brokerage remained bullish on the stock with a ‘Buy’ rating and a target price of Rs 550 per share, implying an upside potential of more than 43% from the stock’s previous closing price of Rs 384.10 apiece on NSE.The shares of Varun Beverages have declined nearly 10% in one month, and are down over 18% in 2026 so far. The company currently has a market capitalisation of nearly Rs 1.36 lakh crore.
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