Britannia Industries Share Price Drops 2% Following Q1 FY26 Results

Market Performance

Britannia Industries share price witnessed a decline of 1.9% on Wednesday, August 6, 2025, trading at Rs 5,528 on the NSE. The stock faced pressure after the company announced its quarterly earnings for the period ended on June 30, 2025.

The biscuit manufacturer's shares opened lower at 9:22 AM, reflecting investor concerns over the company's performance metrics falling short of market expectations.

Main News

Britannia Industries reported mixed quarterly results that failed to meet market estimates. The company's profit and volume growth came in below expectations, leading to the share price correction.

The June quarter results showed growth in key financial metrics, but the pace of expansion was slower than anticipated. Volume growth particularly disappointed, coming in at just 2% compared to higher projections.

Market sentiment turned cautious as the results highlighted challenges in maintaining robust growth momentum in the current competitive environment.

Company Details

Britannia Industries stands as a major player in India's biscuit manufacturing sector. The company operates across multiple product categories and has established market leadership in the biscuit segment.

Vice Chairman & Managing Director Varun Berry highlighted that the company achieved double-digit growth supported by marginal improvement in consumption patterns. Both urban and rural markets showed signs of recovery, aided by moderating inflation levels.

The company's focus remains on sustaining healthy growth while protecting profit margins in an increasingly competitive landscape across various product categories.

Financial Performance

Revenue Growth

• Revenue from sale of products: Rs 4,534.86 crore (up 9.8% year-on-year)
• Revenue from operations: Rs 4,622.22 crore (up 8.75% year-on-year)

Profitability Metrics

• Consolidated net profit: Rs 520.13 crore (up 3% year-on-year)
• Previous year Q1 net profit: Rs 504.88 crore

EBITDA Performance

• EBITDA margin: 16.4% (contracted by 136 basis points)
• Volume growth: 2% for the quarter

Summary

Britannia Industries share price declined 2% following the release of Q1 FY26 results that showed modest growth figures. While the company reported a 3% increase in net profit to Rs 520.13 crore, the performance fell short of market expectations.

The revenue growth of 9.8% to Rs 4,534.86 crore indicated steady business expansion, but volume growth of just 2% raised concerns about demand momentum. The EBITDA margin compression to 16.4% also weighed on investor sentiment.

Going forward, Britannia Industries aims to maintain its market leadership through continued investments in brand building and product innovations. The company expects to benefit from improving consumption trends across both urban and rural markets as inflation moderates.