Synopsis:
Britannia Industries is in focus after reporting a mediocre performance in the first quarter of this financial year. Prabhudas Liladhar gave the highest upside, whereas Motilal Oswal and Avendus take a cautious approach.
The share of this biscuit market leader is back in focus as the management has also expressed its highlights over its performance. In this article, we will dive more into the details. The stock corrected by 6 percent in the last one year.
With a market capitalization of Rs 1,32,007 crore, the shares of Britannia Industries Ltd are currently trading at Rs 5,480 crore, representing a decline of 15 percent from its 52-week high of Rs 6,473.10 per share. Over the past five years, the stock has delivered a positive return of 39 percent.
Q1 Highlights
Britannia’s revenue for Q1 FY26 came in at Rs 4,622 crore, registering a 9 percent growth from Rs 4,250 crore in the same quarter last year. Additionally, on a sequential basis, revenue increased by 4.3 percent from Rs 4,432 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit growth of 3 percent to Rs 520 crore in Q1 FY26 as compared to Rs 505 crore in Q1 FY25. However, on a QoQ basis, it declined by 7 percent from Rs 559 crore.
Britannia’s CEO Varun Berry said sales growth came from better use of retail outlets, faster store servicing, and improved distribution. The company also saw double-digit growth in key states and bakery items like rusk, wafers, and croissants, helped by improved rural and urban demand and easing inflation.
The stock delivered an ROE and ROCE of 52.92 percent and 52.92 percent respectively, and is currently trading at a P/E of 60.19x as compared to its industry average of 59.35x.
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Guidance
Britannia Industries’ management expects realisation growth of around 6–8 percent over the next 2–3 quarters, supported by stable demand conditions. For FY26, capex is capped at approximately Rs 100 crore, lower on a year-on-year basis, with a focus on essential investments.
The company’s recent expansions in Tirunelveli, Uttar Pradesh, and Orissa have added sufficient capacity, particularly for products like Jim Jam, reducing the need for major new spending
Analyst Comments
Motilal Oswal has kept a ‘Neutral’ rating on Britannia, setting a target price of Rs 5,850, which suggests an upside of 7 percent. The brokerage pointed out ongoing pressure on margins and sluggish volume growth, although pricing strategies are helping to boost revenue.
They anticipate that EBITDA margins will hover between 18 percent and 18.5 percent through FY26–28. While a gradual recovery could be on the horizon, the brokerage is waiting for more stable demand trends before it feels optimistic.
Avendus has maintained an ‘Add’ rating on Britannia, adjusting the target price slightly down to Rs 5,800 from Rs 5,900, which suggests an upside of 6 percent. They anticipate double-digit growth driven by pricing strategies, along with a gradual recovery in volume. The brokerage also highlights Britannia’s expansion into new product areas as a significant factor for long-term growth.
Prabhudas Lilladher has kept a ‘BUY’ rating on Britannia, setting a new target price of Rs 6,223, which suggests an upside of 13.6 percent. The brokerage is feeling positive about growth, mainly due to encouraging demand trends, effective cost management, and strong performance in areas like rusks and dairy products.
Even though there are some short-term challenges with margins due to rising staff costs and a dip in other income, PL is forecasting a 14.1 percent growth in EPS from FY25 to FY27 and considers Britannia a top pick with high conviction.
Despite recent stock underperformance, Britannia’s fundamentals remain solid with steady growth and brand strength. Brokerages’ views are mixed, with some flagging margin pressure, pricing strategies, and more, while others see long-term potential.
Expansion into new categories adds growth visibility. Investors may consider the stock for medium- to long-term gains, but should always do their own research before investing.
Written by Satyajeet Mukherjee
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