Britannia Ind shares gain 5% after Q2 results; revenue misses estimates

Britannia Industries shares gained 5 per cent after the FMCG major reported a Y-o-Y profit growth of 23.1 per cent

Shares of Britannia Industries Ltd. rose 5 per cent on Thursday after the fast-moving consumer goods (FMCG) major reported a year-on-year profit growth of 23.1 per cent in the July-September quarter.  

 

The Bengaluru-based firm's stock rose as much as 5.07 per cent during the day to ₹6,191.5 per share, the steepest intraday rise since September 4 2024. The Britannia Industries stock pared gains to trade 3.6 per cent higher at ₹6,105 apiece, compared to a 0.09 per cent advance in Nifty 50 as of 9:54 AM. 

 

Shares of the company rose for the second straight session and currently trade at 11 times the average 30-day trading volume, according to Bloomberg. The counter has risen 28 per cent this year, compared to an 8 per cent advance in the benchmark Nifty 50. Britannia Industries has a total market capitalisation of ₹1.46 trillion. 

Britannia Industries Q2 results

Britannia Industries reported steady growth in the July-September quarter, aided by stable commodity prices and ongoing cost-optimisation efforts across its value chain.

 

Revenue rose 3.7 per cent year-on-year to ₹4,841 crore, while profit before interest, tax and depreciation increased 21.5 per cent to ₹1,003 crore. Net profit for the quarter stood at ₹654 crore, a growth of 23 per cent Y-o-Y. 

 

Varun Berry, vice-chairman, managing director and chief executive officer, said, “Transitional challenges arising from GST-related changes in the supply chain, trade, and channels had a short-term impact on business during the latter part of the quarter, which is expected to normalise progressively in the coming quarters.”

Analysts take on Britannia earnings

JM Financial said Britannia Industries delivered a strong earnings beat driven by better gross margins and lower overhead costs, even as revenue fell short of estimates and volume growth moderated compared to recent quarters.

 

The brokerage noted that positive gross margin progression and disciplined cost management led to a sharp upside in Ebitda and profit after tax. It added that the company continues to record robust double-digit growth in its adjacent bakery portfolio, comprising rusk, wafers, and croissants, despite temporary transition challenges, supported by strong momentum in the e-commerce channel.

 

However, overall revenue performance remained softer than that of other food and beverage peers reporting so far, JM Financial said. 

 

Motilal Oswal said Britannia Industries reported a revenue miss but an Ebitda beat in the September quarter. Profitability was aided by relatively stable commodity prices and sustained cost-optimisation efforts across the value chain.

 

The brokerage noted that transitional challenges arising from GST-related changes in the supply chain, trade, and channels had a short-term impact on business during the latter part of the quarter, but these are expected to normalise progressively in the coming quarters.