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Informist, Wednesday, Feb. 11, 2026

 

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--Britannia: Believe flour, palm oil, sugar costs to stay stable going ahead
--CONTEXT: Comments by Britannia mgmt in post-earnings analyst call 
--Britannia:Putting specific resources to fight regional brands' competition 
--Britannia: Intend to launch digital-first brands in the future 
--Britannia: Price points post GST are still stabilising 
--Britannia: Product prices in market are in a bit of state of flux 
--Britannia: Turning a new leaf to make cheese portfolio more attractive 
--Britannia: Have 20% share in e-commerce; aim to raise category penetration 
 

 

By Nandini Sinha and Sunil Raghu

 

MUMBAI/AHMEDABAD – Britannia Industries Ltd. expects margins to improve as prices of commodities are stabilising, the company's management said in a post-earnings conference call with analysts Wednesday. "So now, with the commodity prices tapering off on the prices, the margin stable there, you see that expansion of margins," the management said.

 

"For us, if you take a look at wheat flour, which is very important, it (price of wheat flour) actually came down marginally in Q3FY26 (Oct-Dec). And, as we know that February and March are critical seasons for wheat, we will see how it behaves going ahead in the future, but at the moment it looks to be stable," the management said. 

 

Britannia's consolidated net profit for the December quarter was up nearly 17% on year at INR 6.80 billion, exceeding Street's estimates. However, the company's net sales at INR 49.70 billion were slightly below analysts' expectations of INR 49.92 billion. 

 

Talking about reasons behind the rise in gross margins, the company's management said this was due to late price hikes undertaken to balance the rise in commodity costs last year. While palm oil prices climbed in the December and March quarters of 2024-25 (Apr-Mar), the company took price hikes in the latter part of March and June quarters. By this time, the commodity prices had softened. This helped the company fetch higher prices for its products, thereby helping push up margins.

 

The company is putting specific resources in place to fight regional competition, which was outlined as one of the key driving strategic priorities. "We all know that regional competition has come up, and they are doing their best, and you know, some of them are also doing well. So we need an enterprising plan to fight them back," the company's management said.

 

Other strategic priorities outlined by the company during the conference call included enhancing efficiencies in sales distribution and supply chain, elevating brand experience, and driving innovation and sustainability. 

 

Britannia intends to launch digital-first brands in the future, the management said. "The intent going forward would also be to launch a lot of digital-first brands where it will be margin-accretive, adding to the overall profitability story of e-commerce," the management said. 

 

The company said that product prices after rationalisation of the goods and services tax rates in September are yet to stabilise. "...we were first off the block moving to 10 rupees (INR 10) and five rupees (INR 5) with more biscuits. The implementation of this from the other companies has been staggered," the management said.

 

Britannia aims to make its cheese portfolio more attractive, the management said. "...cheese is important for us, because I think from a brand perception point of view, Britannia's domain connectivity with cheese and dairy is high, and we would want to really leverage that," the management said.

 

Britannia aims to increase its share in the e-commerce space from the current 20%. The company plans to look at e-commerce as a business unit where it will incubate some innovation and new development, the management said.

 

At 1424 IST, shares of the company traded at INR 6,035 on the National Stock Exchange, up nearly 3% from the previous close.  END

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Tanima Banerjee

 

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