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Varun BeveragesBOM:540180 -0.37%98 Dividend Payout Ratio is 0.19 as of Mar. 2026, which is 27% above its 10-year median of 0.15. GuruFocus rates BOM:540180 with a GF Score™ of 98/100 and a GF Value™ of ₹581.68 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 67 Beverages - Non-Alcoholic companies, Varun Beverages ranks better than 86.57% on this metric.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Varun Beverages's Dividend Payout Ratio for the
months ended in Mar. 2026 was 0.19.
The historical rank and industry rank for Varun Beverages's Dividend Payout Ratio or its related term are showing as below:
BOM:540180'
s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.1 Med: 0.15 Max: 0.21
Current: 0.16
During the past 11 years, the highest Dividend Payout Ratio of Varun Beverages was 0.21. The lowest was 0.10. And the median was 0.15.
BOM:540180's Dividend Payout Ratio is ranked better than 86.57% of 67
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 0.44
vs BOM:540180: 0.16
During the past 12 months, Varun Beverages's average Dividends Per Share Growth Rate was 50.00% per year.
During the past 3 years, the average Dividends Per Share Growth Rate was 44.20% per year.
During the past 5 years, the average Dividends Per Share Growth Rate was 45.80% per year.
During the past 11 years, the highest 3-Year average Dividends Per Share Growth Rate of Varun Beverages was 46.60% per year. The lowest was 14.50% per year. And the median was 37.65% per year.
The growth rate is calculated with least square regression.
For more information regarding to dividend, please check our Dividend Page.
* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.
Varun Beverages (BOM:540180) Dividend Payout Ratio Explanation
In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.
Varun Beverages Dividend Payout Ratio Related Terms
Varun Beverages Dividend Payout Ratio Historical Data
* Premium members only.
The historical data trend for Varun Beverages's Dividend Payout Ratio 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.
BOM:540180 vs KO, PEP, MNST: Dividend Payout Ratio Comparison
For the Beverages - Non-Alcoholic subindustry, Varun Beverages's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio 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 Dividend Payout Ratio vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Varun Beverages's Dividend Payout Ratio distribution charts can be found below:
* The bar in red indicates where Varun Beverages's Dividend Payout Ratio falls into.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.
Varun Beverages's Dividend Payout Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (BOM:540180) has a Dividend Payout Ratio of 0.19 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Varun Beverages and its competitors. This is 27% above median its historical median of 0.15. Over the past decade, Varun Beverages' Dividend Payout Ratio has ranged from 0.10 to 0.21. According to the industry distribution chart, Varun Beverages ranks #9 out of 67 companies in the Beverages - Non-Alcoholic industry, placing it in the top 13.4%.
Is Varun Beverages' Dividend Payout Ratio too high?
Varun Beverages' current Dividend Payout Ratio of 0.19 is 27% above median its 10-year median of 0.15. Over the past 10 years, this metric has ranged from a low of 0.10 to a high of 0.21. The Beverages - Non-Alcoholic industry median Dividend Payout Ratio is 0.44. Varun Beverages' value of 0.19 is 56.8% below this industry median. Based on the distribution chart, Varun Beverages ranks #9 out of 67 companies in the Beverages - Non-Alcoholic industry, which is in the top quartile — a strong position relative to peers. Overall, Varun Beverages has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Varun Beverages' Dividend Payout Ratio compare to KO and PEP?
According to the Beverages - Non-Alcoholic industry distribution chart, Varun Beverages ranks #9 out of 67 companies for Dividend Payout Ratio. This places Varun Beverages in the top 13% of its industry — outperforming the majority of peers. The industry median Dividend Payout Ratio is 0.44. Varun Beverages' value of 0.19 is 56.8% below this benchmark. Historically, Varun Beverages' own Dividend Payout Ratio has ranged from 0.10 to 0.21 over the past decade. While the company's 10-year median is 0.15 vs. the industry median of 0.44, Varun Beverages has consistently been below 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 Dividend Payout Ratio for a Beverages - Non-Alcoholic company?
The median Dividend Payout Ratio among Beverages - Non-Alcoholic companies is 0.44, based on 67 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Varun Beverages's current Dividend Payout Ratio of 0.19 is 56.8% below 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 Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Varun Beverages and its competitors. For the Beverages - Non-Alcoholic industry, the median Dividend Payout Ratio is 0.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Varun Beverages's current Dividend Payout Ratio is 0.19, which is 27% above median its own 10-year median of 0.15. 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 (BOM:540180) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹581.68, compared to a current price of ₹457.30 — trading 21.4% below its estimated fair value. The current Dividend Payout Ratio is 0.19, which is 27% above median its 10-year median of 0.15 and 56.8% below the Beverages - Non-Alcoholic industry median of 0.44. Varun Beverages' overall GF Score™ is 98/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Varun Beverages (BOM:540180), the current Dividend Payout Ratio is 0.19 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 (BOM:540180) Overvalued in 2026?
Based on GuruFocus' analysis, Varun Beverages stock appears to be undervalued.
The current stock price of ₹457.30 is trading 21.4% below its estimated GF Value™ of ₹581.68.
GuruFocus considers Varun Beverages to be Modestly Undervalued.
Key valuation signals for BOM:540180:
Dividend Payout Ratio: 0.19 (27% above median its 10-year median of 0.15)
GF Value™: ₹581.68 vs. price of ₹457.30 (21.4% below fair value)
Industry Position: 56.8% below the Beverages - Non-Alcoholic median (#9 of 67)
No single metric tells the full story. See the BOM:540180 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.
98GF Score
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