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Informist, Wednesday, Nov. 5, 2025

 

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--Britannia Jul-Sept consol net profit INR 6.54 bln
--Analysts saw Britannia Jul-Sept consol net profit at INR 5.90 bln
--Britannia Jul-Sept consol revenue INR 48.41 bln
--Analysts saw Britannia Jul-Sept consol revenue at INR 49.45 bln
--Britannia Jul-Sept consol PAT INR 6.54 bln vs INR 5.31 bln year ago
--Britannia Jul-Sept consol revenue INR 48.41 bln vs INR 46.68 bln yr ago
--Britannia Apr-Sept consol PAT INR 11.75 bln vs INR 10.37 bln year ago
--Britannia Apr-Sept consol revenue INR 94.63 bln vs INR 89.18 bln year ago
--Britannia: Q2 earnings grew on stable commodity prices, cost cut measures
--Britannia:Saw short-term challenges related to GST cuts in later part of Q2
--Britannia: Aim to drive business through healthy volume-led growth

 

By Avishek Rakshit

 

KOLKATA – Despite a slowdown in its revenue and mounting tax outgo, Britannia Industries Ltd. reported the highest on-year growth in net profit in nine quarters for the September quarter, beating the Street's estimates by 11%.

 

One of the two largest bakery companies in the country, Britannia reported a sharp 23.2% on-year rise in its consolidated bottom line to INR 6.5 billion for the September quarter against the Street's estimate of INR 5.9 billion. The consolidated top line grew by 3.7% on year to INR 48.4 billion, but fell short of the Street's projection of INR 49.5 billion. The company's sales growth slowed to a six-quarter low.

 

In a statement, Britannia said its sales growth was hit by the transitionary effects of the Goods and Services Tax cut which came into effect late September. "Transitional challenges arising from the GST-related changes in supply chain, trade and channels had a short-term impact on business during the latter part of the quarter, which is expected to get normalized progressively in the coming quarter," Varun Berry, executive vice-chairman, managing director & chief executive officer of the company, said in the statement.

 

All fast-moving consumer goods companies complained about their sales channels destocking products and consumers deferring purchases in anticipation of lower taxes. Like industry leader Hindustan Unilever Ltd., Britannia too expects this disruption caused by GST cut to get regularised in the near-term.

 

Britannia credited its growing profits to cost optimisation across its value chain and relatively stable commodity prices of wheat, milk, sugar and palm oil.

 

Cost of materials, which is used to make products, rose 2.7% on year to INR 26.5 billion but other major cost overheads declined. Purchase of stock-in trade came down by over 14% on year to INR 1.8 billion and following the voluntary retirement scheme in the last financial year, employee benefit expenses declined 22% on year to INR 1.8 billion. Overall, the cost of production remained nearly flat at INR 40 billion. Taxes, however, increased 24.5% on year to INR 2.3 billion.

 

While biscuits – the core category which drives the top line - maintained its growth momentum in the September quarter, other bakery categories like rusk, wafers, and croissants continued to deliver double-digit growth for consecutive quarters despite the transitionary headwinds caused by the GST cut.

 

Britannia said the growth of other products, which are mainly consumed in urban India, came in from a strong demand momentum in the e-commerce channel. Rise in home consumption of indulgent and impulse products like Fudge It Cakes, Pure Magic Stars and Tarts, Jim Jam, and Little Hearts also aided the top line growth. These are mainly margin accretive products.

 

"Looking ahead, we aim to drive the business through healthy volume-led growth as we continue to strengthen our presence across different geographies with regional-consumer centric product and distribution strategies, price competitiveness while leveraging our brand strength to sustain market leadership amidst the proliferation of multiple local players in different states and regions," Berry said.

 

Over the past several quarters now, Britannia has been focussing on gaining market share and drive its top line growth by pushing volume-led sales. The company has also been rolling out region specific products to gain market share from local competition.

 

On Tuesday, shares of the company closed 1.2% higher at INR 5,892.50 on the National Stock Exchange. The company declared it results on Wednesday, which was a holiday for Guru Nanak Jayanti.  End

 

Edited by Ashish Shirke

 

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