Varun Beverages Shares in News After PepsiCo Deal Extension

22 May 2026 , 10:58 AM

Shares of Varun Beverages Limited surged more than 3% during Friday’s early trading session after global beverage giant PepsiCo extended its long-term exclusive bottling agreement with the company.

The stock opened nearly 3% higher at ₹532 compared to its previous close of ₹519.85. During intraday trade, shares gained as much as 3.5%, while in the pre-market session, the stock had rallied nearly 10% following the announcement.

PepsiCo Extends Varun Beverages Agreement Till 2049

According to the company’s exchange filing, PepsiCo has extended Varun Beverages’ Exclusive Bottling Appointment (EBA) and trademark license agreement till April 30, 2049.

The earlier agreement was scheduled to expire on April 30, 2039, and the latest extension provides the company with an additional 10 years of operational visibility and long-term business stability.

The revised agreement became effective from May 21, 2026.

Varun Beverages is one of PepsiCo’s largest franchise bottling partners globally and operates across India as well as several international markets.

Removal of Business Restrictions Seen as Major Positive

Apart from extending the agreement tenure, PepsiCo also removed a significant operational restriction from the earlier contract.

Previously, Varun Beverages was restricted from undertaking businesses outside PepsiCo bottling operations in India. Under the revised EBA agreement, the company can now explore and operate other business verticals beyond PepsiCo’s beverage bottling business.

Investors and market participants viewed the relaxation of these restrictions as a strong positive development, as it opens up future diversification opportunities and potential new revenue streams for the company.

The development is expected to improve long-term growth prospects and provide greater strategic flexibility to the beverage major.

Varun Beverages Share Price Performance

Shares of Varun Beverages have delivered strong returns to investors over multiple timeframes.

Long-Term Returns

• More than 489% returns over the last five years
• Over 63% gains in the past three years
• More than 10% returns in the last one year

2026 Stock Performance

• Up 7.3% on a year-to-date (YTD) basis
• Gained 6.6% in the last one month
• Rose 4.7% over the previous five trading sessions

During Friday’s session, the company’s market capitalisation stood at nearly ₹1.78 lakh crore.

Why Investors Are Bullish on Varun Beverages

Analysts believe the extension of the PepsiCo agreement significantly strengthens business visibility for Varun Beverages over the next two decades. Additionally, the removal of operational limitations gives the company flexibility to expand into adjacent businesses, which could support future earnings growth and diversification.

The company continues to benefit from:

• Strong beverage demand in India
• Expanding distribution network
• Growth in international markets
• Long-term strategic partnership with PepsiCo

The latest development further reinforces investor confidence in the company’s long-term growth trajectory.

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