Britannia Q1 profit rises 14% to ₹591 crore as premium products, demand recovery drive growth

Britannia Industries reported a 13.6% year-on-year rise in consolidated net profit for the June quarter, aided by healthy volume growth, premium product launches and improved operating leverage, even as higher fuel and freight costs weighed on the business amid geopolitical tensions in West Asia.

The FMCG major posted a consolidated net profit attributable to shareholders of ₹591.35 crore for the quarter ended June 30, compared with ₹520.72 crore a year earlier. Revenue from operations rose 8.2% to ₹4,999.97 crore from ₹4,622.22 crore, while operating EBITDA increased 11% to ₹840 crore, with EBITDA margin expanding to 16.8% from 16.4% a year ago.

Margins improve despite geopolitical headwinds

Britannia said it navigated a challenging operating environment marked by elevated fuel and shipping costs triggered by the conflict in West Asia, while continuing to gain market share across key categories.

"The year started with West Asia conflict, leading to a steep increase in cost of fuel and shipment charges across our domestic & international businesses, which we've been able to navigate well during this quarter delivering a healthy volume and value growth while also gaining ground against competition, with profits growing ahead of topline in double-digit over last year," chief executive officer and managing director Rakshit Hargave said.

The company said revenue growth accelerated as the quarter progressed, exiting the period with mid-teens revenue growth, supported by rapid expansion in e-commerce, robust performance in general trade and increased spending on advertising, influencers and promotions.

Innovation and brand investments drive growth

Britannia continued to invest in product innovation and marketing during the quarter, launching new offerings while strengthening regional consumer engagement through targeted campaigns.

According to Hargave, innovation remained "a key growth engine", with products such as the Dubai Kunafa Croissant strengthening the company's premium portfolio. The company also highlighted campaigns around Marie Gold, NutriChoice and Little Hearts, alongside regional initiatives such as the Milk Bikis Thirukkural campaign in Tamil Nadu. Its international business also recovered sequentially as supply chain constraints eased towards the end of the quarter.

Looking ahead, Britannia said it remains watchful of crude oil volatility and geopolitical developments in West Asia, which could affect international operations and input costs.

"While we continue to closely monitor the evolving geopolitical situation in West Asia and crude oil volatility for potential impact on international operations and domestic input costs, we will remain agile in our actions to deliver healthy, sustainable revenue growth amidst an improving domestic demand environment, driven by sharp innovation, strong brand investments, and disciplined margin management through accelerated cost efficiency initiatives," Hargave said.

Separately, the board approved the appointment of Sonny Iqbal as an Additional Non-Executive Independent Director for a five-year term effective August 8, 2026, subject to shareholders' approval. It also elevated Piyush Bhandari as vice president–commercial and Abhishek Gaurav as vice president–replenishment as part of its senior management changes.

Shares of Britannia Industries ended Thursday's session 0.66% lower at ₹5,404 apiece on the NSE. The stock has remained largely flat over the past year, underperforming the Nifty Next 50 index, which has gained nearly 13% during the same period.