Earnings Outlook
Britannia PAT seen up on price hike, increased packet size
This story was originally published at 22:18 IST on 9 February 2026
Register to read our real-time news.Informist, Monday, Feb. 9, 2026
By Nandini Sinha
MUMBAI – Britannia Industries Ltd. is expected to post a healthy on-year rise in its consolidated net profit and revenue for the December quarter due to price hikes and increase in the weight of good sold in low-sized packets, according to brokerages.
The company is expected to post a consolidated net profit of INR 6.70 billion for the December quarter, up over 15% on year and over 2% on quarter, according to the average of estimates from 12 brokerages. The highest estimate for the bottom line is INR 7.10 billion from Kotak Securities Ltd. while the lowest estimate is INR 6.06 billion from Nirmal Bang Equities Pvt. Ltd. The company will announce its earnings Tuesday.
Britannia is expected to post consolidated revenues of INR 49.91 billion for the December quarter, up nearly 9% on year and over 3% on quarter, according to the average of estimates. The highest estimate for the company's top line is INR 51.15 billion from Kotak Securities, while the lowest estimate is INR 48.90 billion from YES Securities (India) Ltd.
An increase in the weight of packets retailing at INR 5, INR 10, and INR 20, which account for 63% of Britannia's sales, is expected to increase volumes for the quarter under review, according to Nuvama. "In bigger packs, we expect Price cuts/Promotions which will again aid consumption," according to the brokerage. Nuvama expects transition issues caused by cuts in the goods and services tax to have played out after November.
Britannia's consolidated earnings before interest, tax, depreciation, and amortisation are expected to be INR 9.59 billion, according to the average of estimates from 11 brokerages. The highest estimate for the company's EBITDA is INR 10 billion by Kotak Securities, while the lowest estimate is INR 8.68 billion by Nirmal Bang.
"We expect price hikes of 5.5%, a bit lower than 2Q (September quarter) as it had to pass on the GST-led benefits. We expect soft raw material prices to drive improvement in margins, leading to low-teens EBITDA growth," according to Nomura Equity Research. Lower palm oil prices are expected to sharply improve the company's gross margin for the December quarter, according to JM Financial Institutional Securities Pvt. Ltd.
"About 85-90% of BRIT's (Britannia's) portfolio saw a cut in GST rate to 5% from 18%/12%," according to Kotak Securities. In the December quarter, the company is expected to see some reversal of the impact of trade destocking in the trailing quarter, according to the brokerage.
The company's EBITDA margin for the December quarter is seen at 17.5-19.6%, up 20-252 basis points on year. Nirmal Bang expects the EBITDA margin to contract 90 bps on year, which is an outlier estimate. Sequentially, Britannia's EBITDA margin is expected to decline 9-220 bps, according to estimates. "EBITDA margins are likely to remain broadly stable to marginally softer...amid competitive pricing and higher brand investments," according to YES Securities.
The outlook for demand, inflation in raw material prices, pricing actions, and competitive actions are key factors to watch out for in the December quarter, according to Systematix Shares and Stocks (India) Ltd.
Britannia's shares have fallen nearly 3% since its September quarter earnings were announced. Shares of the company closed at INR 5,843 on the National Stock Exchange Monday, down over 1%.
Of the 11 brokerage reports on the company available with Informist, eight have 'buy' recommendation on the stock with an average target price of INR 6,990 per share. This is nearly 20% higher than the current market price. Three brokerages have a 'hold' recommendation with an average target price of INR 6,332 per share.
Following are the December quarter earnings estimates of Britannia from 12 brokerages in descending order of the estimate of net profit in INR billion:
|
BROKERAGE NAME |
NET SALES |
NET PROFIT |
EBITDA |
|
Kotak Securities Ltd. |
51.15 |
7.10
|
10 |
|
Motilal Oswal Financial Services Ltd. |
50.21 |
6.89
|
9.87 |
|
Elara Securities (India) Pvt Ltd. |
49.70 |
6.87
|
9.82 |
|
JM Financial Institutional Securities Pvt Ltd. |
49.79 |
6.79
|
9.84 |
|
Emkay Global Financial Services Ltd. |
50.51 |
6.76
|
9.70 |
|
Mirae Asset Sharekhan Ltd. |
49.99 |
6.76
|
|
|
Nomura Equity Research |
49.03 |
6.74 |
9.62 |
|
Prabhudas Lilladher Pvt Ltd. |
50.61 |
6.71 |
9.41 |
|
Nuvama Wealth Management Ltd. |
49.81 |
6.67 |
9.66 |
|
YES Securities (India) Ltd. |
48.90 |
6.54 |
9.39 |
|
Systematix Shares and Stocks (India) Ltd. |
49.63 |
6.53 |
9.57 |
|
Nirmal Bang Equities Pvt Ltd. |
49.60 |
6.06 |
8.68 |
|
|
|
|
|
|
Average |
49.91 |
6.70 |
9.59 |
End
Edited by Akul Nishant Akhoury
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