Easing commodity prices likely to support margins of Britannia Industries

Despite muted volumes in Q1FY26, brokerages see upside in Britannia's margins as input cost pressures ease and pricing actions continue to support profitability

Led by an uptick in pricing, consumer major Britannia Industries reported a robust growth in revenues for the first quarter of 2025-26 (Q1FY26). While overall growth was strong, what disappointed the Street was the muted volumes and pressure on profitability. Though results were a mixed bag, brokerages are positive on the stock given the expectations of steady revenue growth and improvement in margins on lower raw material costs. 

Overall sales growth for the packaged foods major came in at 8.8 per cent year-on-year (Y-o-Y) to ₹4,622 crore and was in line with Street expectations. While transaction growth was strong at