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Informist, Thursday, Jul. 30, 2026

By Avishek Rakshit

KOLKATA – Recovering market share, especially in low price packs, an increase in sales volume post the Goods and Services Tax cuts, and price hikes are expected to help Britannia Industries Ltd. report decent net profit growth during the June quarter, according to estimates from brokerages tracking the company. 

After the GST rate cut that lowered biscuit prices, came into effect, Britannia had increased the grammage in smaller packs to pass on the lower tax benefits to consumers. However, its competitors such as Parle, Bisk Farm and several other brands had actually reduced pack prices instead of increasing grammage. This led Britannia to lose some market share to Parle and local brands since the December quarter, which continued in the June quarter as well. However, Britannia recovered some lost ground in the June quarter after industry-wide price hikes, which narrowed the pricing gap between Britannia and its competitors to a large extent. 

The June quarter consolidated top line of Britannia, which is one of the two largest bakery companies in the country, is expected to rise nearly 8% on year and around 6% on quarter to around INR 50 billion, according to the average of estimates from 12 brokerages. The highest estimate for revenue is a little over INR 50 billion by Systematix Shares and Stocks (India) Ltd., and the lowest is a little over INR 48 billion by Axis Securities Ltd.

Britannia's consolidated bottom line for the June quarter is expected to rise by around 15% on year but fall around 12% on quarter to nearly INR 6 billion, according to the average of the estimates. The highest estimate for net profit is INR 6.34 billion from Kotak Securities Ltd. and the lowest is INR 5.68 billion from YES Securities (India) Ltd. The company will declare its June quarter earnings on Aug. 6. 

Brokerage Kotak estimates Britannia's volume to have grown 7.5% on year in the June quarter which may have led to some market share recovery for the bakery company. Further, 3-4% price hikes taken by Britannia in the June quarter to stave off higher input costs may lead to a 2% improvement in price mix for the company, leading to revenue growth, brokerage Kotak said.

However, Britannia's volume growth in the June quarter was negatively impacted due to muted tea consumption on account of severe heatwaves and liquefied petroleum gas scarcity, indirectly leading to biscuit shortage, Nuvama Wealth Management Ltd. said. 

Britannia's consolidated earnings before interest, tax, depreciation, and amortisation are expected at INR 8.60 billion for the June quarter, according to the average of estimates from 12 brokerages. The EBITDA estimates range between INR 8.12 billion from YES Securities and INR 9.04 billion by brokerage Kotak. 

Brokerage Kotak expects Britannia's consolidated gross margins to expand by 85 basis points on year to 41.1%, aided by a low base, while Nuvama expects the gross margins to expand by 174 bps on year. 

Brokerages will be tracking Britannia's premiumisation strategy, innovative product rollouts, adjacencies business performance, and online sales plans in the coming few quarters. 

On Thursday, shares of Britannia closed flat at INR 5,524.50 on the National Stock Exchange. The shares are down over 9% since the company announced its March quarter earnings in May.

Of the 12 research reports on the company available with Informist, 11 have a 'buy' recommendation on the stock at an average target price of INR 7,004 and one brokerage has a 'sell' recommendation on the scrip. 

Following are the June quarter earnings estimates for Britannia Industries from 12 brokerages in descending order of the estimate of net profit in INR billion:

End

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

Edited by Himanshi Gupta 

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