Britannia stock needs a treat of accelerated growth rates
Subscribe to enjoy similar stories.The Britannia Industries stock is down about 7% in the past two days after its March quarter (Q4FY26) volume growth came in at a subdued 5.5%. The biscuit maker’s total consolidated operating revenue growth stood at 6.5% year-on-year to ₹4,719 crore. Growth moderated in March compared with January-February, mainly due to supply disruptions in international business following the West Asia war.
Further, the dual (lower) pricing issue due to competition in India also hurt Britannia’s growth in the wholesale/business-to-business channels, which account for about 25% of sales. Rivals operated at ₹4.5/9 price points, versus Britannia’s ₹5/10.The management believes growth will stabilise from Q1FY27. This would be supported by the easing of the dual pricing issue, given raw material inflation.
Channel checks by Nomura Research’s analysts suggest that Parle (unlisted) has moved to ₹5/10 price points (about 65% of Britannia’s business) from mid-March. “However, we believe that they will have nearly two months of inventory in the channel, and thus the positive impact of this change to Britannia’s numbers will likely be visible from Q2,” said the analysts in a report dated 10 May.Gross margin continued to expand year-on-year for the third straight quarter, but at 42.1% in Q4FY26, up 203 basis points (bps), it fell short of expectations. Ebitda margin dipped 9 bps to 18.1% on higher advertising & promotion (A&P) expenses.
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