Britannia Industries delivered a solid March-quarter performance, with profit rising faster than revenue even as margins stayed broadly unchanged. The more notable takeaway, though, is the company’s larger FY26 dividend recommendation, supported by a year that also benefited from a tax reversal.

Consolidated net profit rose 21.1% year on year to ₹678.34 crore in the March quarter, compared with ₹559.95 crore a year earlier. Revenue from operations increased 6.5% to ₹4,718.9 crore from ₹4,432.2 crore, while total income came in at ₹4,774.4 crore.

EBITDA climbed 5.9% to ₹852.9 crore from ₹805.2 crore a year ago. However, EBITDA margin was almost flat at 18.07%, versus 18.17% in the same quarter last year, indicating that higher sales did not translate into material operating leverage in the period.

What held margins back

The near-flat margin indicates the pressure from input costs and operating expenses, even as Britannia kept its top line moving higher. Cost of materials consumed remained the biggest expense line, while employee costs and other expenses also rose.

This makes the quarter look more like a steady operating print than a margin expansion story. In other words, Britannia grew, but not enough to meaningfully widen profitability at the EBITDA level.

Annual performance

For FY26, consolidated net profit rose 16.5% to ₹2,537 crore, while revenue from operations climbed 6.7% to ₹19,151.6 crore. The company also reported a fiscal incentive income of ₹45.72 crore during the year and said current tax for the quarter and full year included a reversal of provision of ₹95.39 crore due to favourable orders in past tax litigations.

Britannia also recognised an expense of ₹48.56 crore during the year related to the new labour codes, which the company said impacted gratuity and compensated absence liabilities.

The board recommended a final dividend of ₹90.50 per equity share for FY26, subject to shareholder approval at the annual general meeting.

Shares of Britannia Industries ended 1.77% higher at ₹5,885.50 apiece on the NSE. Over the past year, the stock has gained 9.99%, compared with 12.03% for the Nifty Next 50.