Britannia stock crashes 7% to 2-month low; what's behind sharp fall today?

Britannia stock can be under pressure considering Berry's long and successful stint and his sudden exit (without notice period) despite the time gap before the new CEO joins, believe analysts.

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Share price of Britannia Industries today

 

Shares of Britannia Industries slipped 7 per cent to hit an over two-month low of ₹5,721.70 on the BSE in Tuesday’s intra-day trade amid heavy volumes after the company’s Vice-Chairman, Managing Director & Chief Executive Officer (CEO), Varun Berry tendered his resignation.

 

The stock price of the packaged foods company was trading at its lowest level since August 28, 2025. The stock had hit a 52-week high of ₹6,336.95 on September 4, 2025.

 

At 09:40 AM; Britannia share price was quoting 5.4 per cent lower at ₹5,799.50, as compared to 0.27 per cent decline in the BSE Sensex. The average trading volumes at the counter jumped over 10-fold, with a combined 910,000 equity shares changing hands on the NSE and BSE.

Why FMCG stock under pressure today?

 

Britannia CEO, Varun Berry tendered his resignation after a 13-year stint with the company and the board accepted it effective immediately as of November 10, 2025. Rakshit Hargave will take over the role from December 15, 2025. Hargave joins Britannia from Birla Opus, during his stint at Birla Opus as CEO; he led the company through a high growth phase with the company gaining 10 per cent market share within a short span of time in the competitive paints industry.

 

The Board is confident that the management team under the new leadership will be able to take the company to newer heights, Britannia said in an exchange filing.

 

Varun Berry was instrumental in diversifying Britannia from biscuit manufacturer with mid-single digit margins to a food and snacking company with mid to high teens margins. Along with revamping the product portfolio he worked a lot on supply, distribution and manufacturing efficiencies to make Britannia a consistent profit making company, according to ICICI Securities.

 

It was believed that Hargave, joined as MD and CEO will report to Berry. However, Berry’s sudden exit will not augur well with the street, the brokerage firm said in a note.  ALSO READ | Bajaj Finance shares plunge 7% after growth guidance cut; analyts downgrade 

Meanwhile, Britannia has been one of India’s best turnaround stories, with massive success in execution, growth, share gain, cost efficiencies, and supply chain. Under Varun Berry’s leadership, Britannia focused on five strategic planks: distribution, marketing, innovation, cost efficiencies and developing adjacent businesses.

 

The business at times (before his tenure) was considered a commodity business with a weak operating margin profile. The same changed significantly: EBITDA margins jumped from 7 per cent in FY13 to 18 per cent in FY25 (peak of 19 per cent in FY21) and profit after tax margins leapfrogged from 4 per cent in FY13 to 12 per cent in FY25 (peak of 14 per cent in FY21). During his tenure, the revenue, EBITDA, PAT and market-cap have seen a compounded annual growth rate (CAGR) of 10 per cent, 18 per cent, 20 per cent and 25 per cent during FY13-FY25.

 

According to analysts at Motilal Oswal Financial Services, in the near term, there can be pressure on the stock considering Berry’s long and successful stint and his quick exit (without notice period) despite the time gap before the new CEO joins. With this change, the focus on the new CEO and his strategic layout will be crucial, but growth recovery will be a key monitorable in the near term. The interesting part is that overall consumption macros are improving, and the brokerage firm hopes Hargave can bring in fresh energy to Britannia.