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In-line revenue; pressure on margin sustains

• BRIT’s consolidated revenue rose 10% YoY to INR45.3b (est. INR44.8b).
• We estimate that the company recorded ~4% volume growth in 1QFY26 (est. 3%, and 3% in 4QFY25).
• Consolidated gross margin contracted 310bp YoY to 40.3% (est. 40.8%) due to a rise in commodity prices.
• Employee expenses jumped 20% YoY, while other expenses declined 3% YoY, leading to a 140bp YoY dip in EBITDA margin to 16.4% (est. of 17.3%).
• EBITDA was flat YoY at INR7.6b (est. INR7.9b). ? APAT declined 2% YoY to INR5.2b (est. INR5.5b).

Other key highlights

• The growth was driven by focused execution across its distribution network and improved servicing of key outlets.
• Robust double-digit growth was recorded in the four core focus states, as well as in adjacent bakery categories such as rusk, wafers, and croissants.
• A marginal uptick was seen in both urban and rural consumption, boosted by easing inflation, which aided a return to double-digit growth after a few muted quarters.
• Premiumization efforts continued with the launch of new offerings under the premium biscuit portfolio, including the Pure Magic range and Crafted Cookies under the Good Day brand.
• Core brands were further strengthened through targeted media campaigns and marketing initiatives.
• The company remains focused on sustaining healthy growth while safeguarding margins amid intensifying competition.
• Ongoing investments in innovation and brand-building are expected to reinforce market leadership going forward.

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