Varun Beverages shares jump 3% after PepsiCo extends contract term, lifts business restrictions

After trading 10% during the pre-market session, the company’s stock opened 3% higher at ₹532 on Friday. The shares gained 3.5% on an intraday basis when compared to the previous market close of ₹519.85.

In the NSE filing, Varun Beverages disclosed that PepsiCo has extended the company’s ‘exclusive bottling appointment and trademark license’ to April 30, 2049, from its earlier expiry of April 30, 2039.

PepsiCo also lifted the earlier restrictions on Varun Beverages, now allowing the company to carry out any activity other than the special bottling operations of the global giant’s India business.

“The changes inter-alia include extension of the EBA for a term up to April 30, 2049, revised from earlier term up to April 30, 2039. The earlier EBA restricted VBL from carrying out any activity other than to act as an SPV for PepsiCo business, now this requirement is deleted in the revised EBA,” Varun Beverages informed the stock exchanges.

The move to lift the earlier restrictions on Varun Beverages is largely expected to be a positive shift, as it will allow the company to take on other new business operations and verticals, along with carrying out its existing Pepsi exclusive bottling works.

Effective from May 21, 2026, Varun Beverages and PepsiCo has entered into a revised Exclusive bottling appointment and trademark license agreement for India.

Varun Beverages share price

Varun Beverages shares closed 1.14% lower at ₹519.85 after Thursday’s trading session, compared to ₹514 at the previous stock market close, according to NSE data. The company announced the corporate update after the market operating hours on May 21.

Shares of Varun Beverages have delivered more than 489% returns in the last five years, over 63% gains in the last three years, and more than 10% returns in the past one year period, as per the exchange data.

So far in 2026, the company’s stock has gained 7.3% year-to-date and 6.6% in the past one-month period. The company’s stock was trading 4.7% higher over the last five trading sessions on NSE.

Varun Beverage’s market capitalisation (m-cap) was at ₹1.78 lakh crore as of the trading session on Friday, May 22.