Shares of Britannia Industries
rose as much as 4.7 per cent on Friday after the biscuits maker posted
higher quarterly profit and signalled stronger demand, prompting
analysts to reaffirm its growth outlook despite lingering cost
pressures.
Demand for packaged foods remained resilient in the June
quarter as steady consumer spending drove volume growth,
allowing companies such as Britannia to navigate volatile
commodity prices and supply-chain disruptions.
“Demand is holding up… we have exited the quarter on a very
positive note,” CEO and Managing Director Rakshit Hargave said
on an earnings call.
Britannia forecast on Thursday an improving domestic demand
environment to support growth, although it flagged geopolitical
tensions in West Asia and volatile crude oil prices as risks
that could push up input costs.
To protect margins, the company accelerated cost-efficiency
measures, including packaging optimisation, wastage reduction,
procurement efficiencies and greater use of alternate fuels and
renewable energy.
While industrial fuel and laminate costs rose sharply during
the quarter, Britannia said strategic hedges and these
initiatives would help cushion the impact. Total expenses rose
7.3 per cent to ₹42.62 billion ($447.34 million).
Britannia reported a 13.4 per cent rise in quarterly consolidated
net profit to ₹5.91 billion, while revenue from operations
rose 8.2 per cent to ₹50 billion.
The results and outlook lifted investor sentiment. Shares
jumped as much as 4.7 per cent to ₹5,660 on Friday, their highest
level in three months.
Analysts at Macquarie said improving domestic demand and
market share gains would be key near-term growth drivers.
Investec said easing supply-chain constraints could support
margins and maintained its “hold” rating with a price target of ₹5,851.
Nomura said Britannia’s low-single-digit price hikes
supported volume growth broadly in line with expectations. The
brokerage maintained its “buy” rating and a price target of ₹6,500.
Published on August 7, 2026
