Varun Beverages (NSE:VBL) ROCE %: 22.55% (As of Mar. 2026)


NSE:VBL Varun Beverages Ltd NSE:VBL
96 GF Score
Price ₹507.65
GF Value ₹573.53
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Varun Beverages ROCE %?

Varun Beverages NSE:VBL +0.19% 96 ROCE % is 22.55% as of Mar. 2026. GuruFocus rates NSE:VBL with a GF Score™ of 96/100 and a GF Value™ of ₹573.53 (Modestly Undervalued). The stock has 5 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Varun Beverages's annualized ROCE % for the quarter that ended in Mar. 2026 was 22.55%.

Varun Beverages  (NSE:VBL) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Varun Beverages ROCE % Related Terms

Varun Beverages ROCE % Historical Data

* Premium members only.

The historical data trend for Varun Beverages's ROCE % 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.

Varun Beverages ROCE % Chart

Varun Beverages Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.91 31.06 32.18 26.18 20.83

Varun Beverages Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.89 34.92 19.47 7.55 22.55
NSE:VBL
96GF Score
Varun Beverages Ltd NSE:VBL
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Varun Beverages ROCE % Calculation

Varun Beverages's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=41780.43/( ( (231439.1 - 45244.25) + (255651.56 - 40739.45) )/ 2 )
=41780.43/( (186194.85+214912.11)/ 2 )
=41780.43/200553.48
=20.83 %

Varun Beverages's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=48468.56/( ( (255651.56 - 40739.45) + (0 - 0) )/ 1 )
=48468.56/( ( 214912.11 + 0 )/ 1 )
=48468.56/214912.11
=22.55 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 22.55% mean?
Varun Beverages (NSE:VBL) has a ROCE % of 22.55% as of Mar. 2026.
Is Varun Beverages' ROCE % too high?
Varun Beverages' current ROCE % is 22.55%. The Beverages - Non-Alcoholic industry median ROCE % is 12.40. Varun Beverages' value of 22.55% is 81.9% above this industry median. 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' ROCE % compare to KO and PEP?
Varun Beverages' ROCE % of 22.55% can be compared against companies in the Beverages - Non-Alcoholic industry. The industry median ROCE % is 12.40. Varun Beverages' value of 22.55% is 81.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Beverages - Non-Alcoholic company?
The median ROCE % among Beverages - Non-Alcoholic companies is 12.40, based on 114 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Varun Beverages's current ROCE % of 22.55% is 81.9% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Beverages - Non-Alcoholic industry, the median ROCE % is 12.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Varun Beverages's current ROCE % is 22.55%. 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 ₹573.53, compared to a current price of ₹507.65 — trading 11.5% below its estimated fair value. The current ROCE % is 22.55% and 81.9% above the Beverages - Non-Alcoholic industry median of 12.40. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Varun Beverages (NSE:VBL), the current ROCE % is 22.55% 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 ₹507.65 is trading 11.5% below its estimated GF Value™ of ₹573.53. GuruFocus considers Varun Beverages to be Modestly Undervalued.

Key valuation signals for NSE:VBL:

  • ROCE %: 22.55%
  • GF Value™: ₹573.53 vs. price of ₹507.65 (11.5% below fair value)
  • GF Score™: 96/100 with 5 warning signs
  • Industry Position: 81.9% above the Beverages - Non-Alcoholic median

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 Business Description

Other Exchanges 540180:India
Address Institutional Area, Plot No. 31, Sector - 44, Gurugram, HR, IND, 122002
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

Get the complete analysis for NSE:VBL

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹507.65
Price
₹573.53
GF Value