Britannia shares advance up to 5% on 23% YoY rise in Q2 profit; Birla Opus' Rakshit Hargave appointed CEO

The stock saw buying after the FMCG major reported a good set of numbers for the quarter ended September 30, 2024 (Q2 FY26).

The bakery food company on Wednesday reported a 23.23% rise in consolidated net profit to ₹655.06 crore for the September quarter, helped by stable commodity prices and cost optimisation efforts.

The company had posted a net profit of ₹531.55 crore in the July-September quarter a year ago, according to a regulatory filing by Britannia Industries.

Britannia Industries' revenue from the sale of products increased 4% to ₹4,752.17 crore in the September quarter.

Its revenue from operations rose 3.7% to ₹4,840.63 crore in the September quarter. It was ₹4,667.57 crore in the corresponding quarter.

During the quarter, Britannia recorded a "reasonable growth" in revenue, with the profits growing by 23.2%. It is "driven by relatively stable commodity prices and sustained efforts to optimise costs across the value chain," said its Vice Chairman and Managing Director Varun Berry in an earnings statement.

Britannia’s total expenses were flat at ₹4,005.84 crore during the quarter under review.

Its total income, which includes other income, in the September quarter rose 3.8% to ₹4,892.74 crore.

In the first half (H1) of FY26, Britannia's total income grew 6.12% to ₹9,571.97 crore.

"The recent GST rate rationalisation announced by the government is a welcome step towards stimulating consumer demand and uplifting the overall economic sentiment in the country. However, 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 normalised progressively in the coming quarter," Berry said.

The adjacent bakery categories of rusk, wafers, and croissants continued to deliver double-digit growth for consecutive quarters despite the transitional headwinds, driven by strong momentum in the e-commerce channel – also aiding the in-home consumption of our indulgent and impulse product range, Berry added.

Britannia Industries outlook

Berry said, "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 and price competitiveness while leveraging our brand strength to sustain market leadership amidst the proliferation of multiple local players in different states and regions."

Britannia appoints Rakshit Hargave as new CEO, Executive Director

Britannia Industries on Wednesday announced the appointment of Rakshit Hargave as its new chief executive officer (CEO) and executive director, effective December 15, 2025.

The board of the company, in its meeting held on Wednesday, "approved the appointment of Rakshit Hargave as an Additional Whole-Time Director and CEO, designated as Executive Director and CEO of the company for a term of 5 years, subject to the approval of members of the company," Britannia Industries said in a regulatory filing.

Hargrave's appointment shall be effective from the date of his joining the company on December 15, 2025, it added.

Before Britannia, Hargave served as the chief executive officer of Birla Opus, the paints business of the Aditya Birla Group.

The filing added that Hargave is a veteran in the consumer industry with experience both in and outside India. He headed the operations of the German skincare company Beiersdorf (makers of NIVEA) in the ASEAN and ANZ regions.