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Varun BeveragesNSE:VBL +4.00%98 3-Year ROIIC % is 10.71 as of Dec. 2025, which is 36% below its 10-year median of 16.71. GuruFocus rates NSE:VBL with a GF Score™ of 98/100 and a GF Value™ of ₹591.14 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 106 Beverages - Non-Alcoholic companies, Varun Beverages ranks better than 50% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Varun Beverages's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 10.71%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Varun Beverages's 3-Year ROIIC % or its related term are showing as below:
NSE:VBL's 3-Year ROIIC % is ranked better than 50% of 106
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 10.505
vs NSE:VBL: 10.71
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Varun Beverages 3-Year ROIIC % Related Terms
Varun Beverages 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Varun Beverages's 3-Year ROIIC % 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.
NSE:VBL vs KO, PEP, MNST: 3-Year ROIIC % Comparison
For the Beverages - Non-Alcoholic subindustry, Varun Beverages's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Varun Beverages's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Varun Beverages's 3-Year ROIIC % falls into.
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Varun Beverages (NSE:VBL) has a 3-Year ROIIC % of 10.71 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Varun Beverages and its competitors. This is 36% below median its historical median of 16.71. Over the past decade, Varun Beverages' 3-Year ROIIC % has ranged from 10.71 to 41.31. According to the industry distribution chart, Varun Beverages ranks #53 out of 106 companies in the Beverages - Non-Alcoholic industry, placing it in the top 50%.
Is Varun Beverages' 3-Year ROIIC % too high?
Varun Beverages' current 3-Year ROIIC % of 10.71 is 36% below median its 10-year median of 16.71. Over the past 10 years, this metric has ranged from a low of 10.71 to a high of 41.31. The Beverages - Non-Alcoholic industry median 3-Year ROIIC % is 10.51. Varun Beverages' value of 10.71 is 2% above this industry median. Based on the distribution chart, Varun Beverages ranks #53 out of 106 companies in the Beverages - Non-Alcoholic industry, which is above the industry midpoint. 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' 3-Year ROIIC % compare to KO and PEP?
According to the Beverages - Non-Alcoholic industry distribution chart, Varun Beverages ranks #53 out of 106 companies for 3-Year ROIIC %. This puts Varun Beverages in the upper half of its industry. The industry median 3-Year ROIIC % is 10.51. Varun Beverages' value of 10.71 is 2% above this benchmark. Historically, Varun Beverages' own 3-Year ROIIC % has ranged from 10.71 to 41.31 over the past decade. While the company's 10-year median is 16.71 vs. the industry median of 10.51, 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 3-Year ROIIC % for a Beverages - Non-Alcoholic company?
The median 3-Year ROIIC % among Beverages - Non-Alcoholic companies is 10.51, based on 106 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Varun Beverages's current 3-Year ROIIC % of 10.71 is 2% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Varun Beverages and its competitors. For the Beverages - Non-Alcoholic industry, the median 3-Year ROIIC % is 10.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Varun Beverages's current 3-Year ROIIC % is 10.71, which is 36% below median its own 10-year median of 16.71. 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 ₹591.14, compared to a current price of ₹447.20 — trading 24.3% below its estimated fair value. The current 3-Year ROIIC % is 10.71, which is 36% below median its 10-year median of 16.71 and 2% above the Beverages - Non-Alcoholic industry median of 10.51. Varun Beverages' overall GF Score™ is 98/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Varun Beverages (NSE:VBL), the current 3-Year ROIIC % is 10.71 as of Dec. 2025. 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 ₹447.20 is trading 24.3% below its estimated GF Value™ of ₹591.14.
GuruFocus considers Varun Beverages to be Modestly Undervalued.
Key valuation signals for NSE:VBL:
3-Year ROIIC %: 10.71 (36% below median its 10-year median of 16.71)
GF Value™: ₹591.14 vs. price of ₹447.20 (24.3% below fair value)
Industry Position: 2% above the Beverages - Non-Alcoholic median (#53 of 106)
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.
98GF Score
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