Synopsis: Following shareholder approval at its 31st AGM on April 1, 2026, Varun Beverages Limited has fixed Wednesday, April 8, 2026 as the record date for its final dividend of Rs. 0.50 per equity share for the financial year ended December 31, 2025.
A final dividend announcement from India’s largest PepsiCo franchisee brought the stock into focus on April 1, with the company fixing a record date just seven days out. The board passed a circular resolution, formalising what shareholders had already cleared at the AGM held on the same day.
With a market capitalisation of Rs. 1,35,047.03 crore, the shares of Varun Beverages Limited were trading at Rs. 399.3 per share, down 0.62 percent from its previous closing price of Rs. 401.8 apiece. It is trading at a P/E of 44.29.
Dividend Update
The company declared a final dividend of Re. 0.50 per equity share of face value Rs. 2 each for the financial year ended December 31, 2025. The record date is April 8, 2026, and payment will be made from April 10, 2026 to all shareholders whose names appear in the register of members or in the depositories’ beneficial owner list as of that date. Shareholders looking to qualify will need to hold shares before the ex-dividend date of April 7, 2026.
At 338 crore shares outstanding (equity capital of Rs. 676 crore at Rs. 2 face value), the total dividend outgo for this final tranche works out to approximately Rs. 169 crore. That translates to a yield of roughly 0.13 percent on the current price, making this a largely symbolic rather than income-generating event for equity holders. Screener data shows VBL’s full-year FY25 dividend payout ratio at 17 percent of consolidated earnings consistent with the company’s long-standing practice of retaining the bulk of profits for reinvestment.
Context: Capital at Work
The modest dividend comes against the backdrop of an active international expansion drive. In March 2026 alone, VBL’s subsidiary Bevco completed the acquisition of Twizza for ZAR 2,053 million (approximately Rs. 1,140 crore), and separately agreed to acquire Crickley for ZAR 238 million. Earlier in the month, the company increased its stake in Jager by 23 percent for Rs. 7.05 crore. This Africa push has absorbed meaningful capital, and is reflected in the balance sheet.
Business Overview
Varun Beverages Limited, listed on both BSE and NSE, has been a PepsiCo franchisee since the 1990s and produces a range of carbonated and non-carbonated beverages including Pepsi, Mountain Dew, 7UP, Sting, and Aquafina, alongside own brands such as Reboost and Creambell.For the quarter Q3 FY26 (quarter ended December 2025), the company reported consolidated revenue of Rs. 4,204 crore against Rs. 3,689 crore in Q3 FY25, a 14 percent increase while net profit rose 36 percent to Rs. 260 crore from Rs. 196 crore.
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