Varun BeveragesNSE:VBL +1.61%96 Interest Coverage is 24.16 as of Mar. 2026, which is 384% above its 10-year median of 4.99. GuruFocus rates NSE:VBL with a GF Score™ of 96/100 and a GF Value™ of ₹575.18 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 89 Beverages - Non-Alcoholic companies, Varun Beverages ranks better than 60.67% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Varun Beverages's
Operating Income
for the
three
months ended in Mar. 2026 was ₹11,721 Mil. Varun Beverages's Interest Expense for the
three
months ended in Mar. 2026 was ₹-485 Mil.
Varun Beverages's interest coverage for the quarter that ended in Mar. 2026 was 24.16.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Varun Beverages's Interest Coverage or its related term are showing as below:
NSE:VBL'
s Interest Coverage Range Over the Past 10 Years
Min: 1.24 Med: 4.99 Max: 22.92
Current: 22.69
NSE:VBL's Interest Coverage is ranked better than 60.67% of 89
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 12.45
vs NSE:VBL: 22.69
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Varun Beverages Interest Coverage Related Terms
Varun Beverages Interest Coverage Historical Data
* Premium members only.
The historical data trend for Varun Beverages's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
NSE:VBL vs KO, PEP, MNST: Interest Coverage Comparison
For the Beverages - Non-Alcoholic subindustry, Varun Beverages's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Varun Beverages Interest Coverage vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Varun Beverages's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Varun Beverages's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Varun Beverages (NSE:VBL) has a Interest Coverage of 24.16 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Varun Beverages and its competitors. This is 384% above median its historical median of 4.99. Over the past decade, Varun Beverages' Interest Coverage has ranged from 1.24 to 22.92. According to the industry distribution chart, Varun Beverages ranks #35 out of 89 companies in the Beverages - Non-Alcoholic industry, placing it in the top 39.3%.
Is Varun Beverages' Interest Coverage too high?
Varun Beverages' current Interest Coverage of 24.16 is 384% above median its 10-year median of 4.99. Over the past 10 years, this metric has ranged from a low of 1.24 to a high of 22.92. The Beverages - Non-Alcoholic industry median Interest Coverage is 12.45. Varun Beverages' value of 24.16 is 94.1% above this industry median. Based on the distribution chart, Varun Beverages ranks #35 out of 89 companies in the Beverages - Non-Alcoholic industry, which is above the industry midpoint. Overall, Varun Beverages has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Varun Beverages' Interest Coverage compare to KO and PEP?
According to the Beverages - Non-Alcoholic industry distribution chart, Varun Beverages ranks #35 out of 89 companies for Interest Coverage. This puts Varun Beverages in the upper half of its industry. The industry median Interest Coverage is 12.45. Varun Beverages' value of 24.16 is 94.1% above this benchmark. Historically, Varun Beverages' own Interest Coverage has ranged from 1.24 to 22.92 over the past decade. While the company's 10-year median is 4.99 vs. the industry median of 12.45, Varun Beverages has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Beverages - Non-Alcoholic company?
The median Interest Coverage among Beverages - Non-Alcoholic companies is 12.45, based on 89 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Varun Beverages's current Interest Coverage of 24.16 is 94.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Varun Beverages and its competitors. For the Beverages - Non-Alcoholic industry, the median Interest Coverage is 12.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Varun Beverages's current Interest Coverage is 24.16, which is 384% above median its own 10-year median of 4.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Varun Beverages stock overvalued right now?
Based on GuruFocus' analysis, Varun Beverages (NSE:VBL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹575.18, compared to a current price of ₹515.70 — trading 10.3% below its estimated fair value. The current Interest Coverage is 24.16, which is 384% above median its 10-year median of 4.99 and 94.1% above the Beverages - Non-Alcoholic industry median of 12.45. Varun Beverages' overall GF Score™ is 96/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Varun Beverages (NSE:VBL), the current Interest Coverage is 24.16 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Varun Beverages (NSE:VBL) Overvalued in 2026?
Based on GuruFocus' analysis, Varun Beverages stock appears to be undervalued.
The current stock price of ₹515.70 is trading 10.3% below its estimated GF Value™ of ₹575.18.
GuruFocus considers Varun Beverages to be Modestly Undervalued.
Key valuation signals for NSE:VBL:
Interest Coverage: 24.16 (384% above median its 10-year median of 4.99)
GF Value™: ₹575.18 vs. price of ₹515.70 (10.3% below fair value)
Industry Position: 94.1% above the Beverages - Non-Alcoholic median (#35 of 89)
No single metric tells the full story. See the NSE:VBL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Varun Beverages Ltd is engaged in manufacturing, selling, bottling, and distribution of beverages of the Pepsi brand in geographically pre-defined territories of India, Sri Lanka, Nepal, Zambia, Morocco, and Zimbabwe. Its brands include Seven-Up, Mountain Dew, Mirinda, Nimbooz, Tropicana Slice, and other related products. The firm generates a majority of its revenue within India.
96GF Score
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