Britannia Industries Q1 Results: Net profit misses estimates; revenue soars 10% YoY

Indian biscuit maker Britannia Industries released its June quarter (Q1FY26) results today, post-market hours, with numbers coming in below estimates.

The company, which sells 'Marie Gold' and 'Bourbon' biscuits, reported a consolidated net profit of ₹520 crore, lower than analysts’ estimates of ₹570 crore. It had reported a net profit of ₹504 crore in the year-ago quarter and ₹556 crore in the preceding March quarter.

The consolidated revenue from operations during the reporting quarter came in at ₹4,622 crore, compared to ₹4,250 crore in the June 2024 quarter. EBITDA stood at ₹757 crore, lower than the estimated ₹814 crore, with margins coming at a multi-quarter low at 16.4% versus analysts’ average estimate of 17.7%.

Continued inflation in key raw materials and higher employee benefit expenses took a toll on the company’s operating margins, which fell 135 basis points YoY. Operating profit came in flat but lower compared to ₹801 crore in Q4FY25. Apart from rising key raw material prices, the continued weak demand from urban consumers amid rising living costs continues to weigh on consumer goods sales.

Commenting on the performance, Mr. Varun Berry, Executive Vice-Chairman, Managing Director & Chief Executive Officer, 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."

A marginal uptick in consumption across both urban and rural markets, underpinned by moderating inflation, helped us go back to double-digit growth after the last few periods.

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

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