Britannia stock declines nearly 5% as margin contracts in June quarter; check all Q1 numbers

The food product’s company reported a 2.96% year-on-year (YoY) surge in its consolidated net profit to ₹521 crore during the quarter under review, compared to ₹506 crore in the June quarter of the last fiscal year.

Its revenue from operations stood at ₹4,622 crore in the June quarter of FY26, marking an 8.75% increase from ₹4,250 crore in the corresponding quarter of FY25.

In Q1FY26, the Kolkata-headquartered firm’s net sales grew 9.8% YoY to ₹4,535 crore, as against ₹4,130 crore in the first quarter of FY25.

Its rusk business category experienced a double-digit growth across all channels, bolstered by strong distribution.

Its wafers segment surged 2.7 times the biscuits vertical during the reporting quarter. It also gained 190 basis points in market share over two years, the firm said in a regulatory filing.

For the fourth consecutive quarter, its croissants business had a mid-20s growth. Furthermore, in the dairy business, the cheese segment saw healthy growth following a relaunch and price parity with the competition. In drinks, its milkshake business grew double-digit despite seasonal headwinds.

At an operational level, Britannia’s EBITDA (earnings before interest, tax, depreciation, and amortisation) was at ₹669 crore, rising 5.7% YoY from ₹633 crore in the year-ago period.

Its EBITDA margin shrank to 14.77% in Q1FY26, from 15.34% in Q1FY25.

A marginal increase in consumption across urban and rural markets, underpinned by moderating inflation, helped Britannia get double-digit growth after the last two quarters.

The company plans to sustain its margins while being competitive against regional players.

It will focus on driving consumption in core categories, distribution in adjacent businesses, closely monitor policy interventions and harvest output impacting Commodity prices, Britannia said.

Commenting on the earnings, Varun Berry, Executive Vice-Chairman, Managing Director & Chief Executive Officer of Britannia, said: “Our performance during the quarter underscores the effectiveness of our focused execution strategy, which entailed maximizing value from existing outlets, enabling more agile servicing to key stores, and driving operational efficiencies across our extensive distribution network, leading to a growth of ~10% in sales along with robust double-digit growth across our four focus states and in adjacent bakery categories such as Rusk, Wafers, and Croissant."

"Continuing our journey of premiumization through innovations, exciting new launches across our premium biscuit portfolio, such as the Pure Magic range, Crafted Cookies under Good Day, enriched our offerings to consumers while we continued building our core brands through focused media and marketing interventions," he added.

"We aim to further reinforce our market leadership through continued investments in brand building and innovations,” Berry said.

Shares of Britannia were trading 2.72% lower at ₹5,482 apiece, at around 10:54 am.

The company has a total market capitalisation of ₹1.32 lakh crore, as of August 6, 2025, as per data on the NSE.