Company Update : Britannia Industries Ltd by Motilal Oswal Financial Services Ltd
Miss in revenue but beat in EBITDA; appoints new CEO
* BRIT’s consolidated total revenue rose 3.7% YoY to INR48.4b (est. INR50.2b) in 2QFY26.
* Consolidated gross margin improved by 20bp YoY and 140bp QoQ to 41.7% (est. 40.8%), driven by relatively stable commodity prices.
* Employee expenses were down 22% YoY, while other expenses declined ~7% YoY, leading to a beat in EBITDA margin, which expanded by 290bp YoY 330bp QoQ to 19.7% (est. of 17.4%).
* EBITDA was up 22% YoY at INR9.5b (est. INR8.7b).
* APAT rose 23% YoY to INR6.6b (est. INR6.1b).
* In 1HFY26, net sales/EBITDA/APAT grew 6%/11%/11% YoY.
The company has appointed Mr. Rakshit Hargave as an Additional WholeTime Director and CEO, designated as ED and CEO of the Company for a term of five years, effective 15th Dec’25.
Other key highlights
* Transitional challenges arising from the GST-related changes in Supply Chain, Trade and Channels had a short-term impact on business during the latter part of the quarter, which is expected to get normalized progressively in the coming quarter.
* Profitability was supported by relatively stable commodity prices and sustained efforts to optimize costs across the value chain.
* The adjacent bakery categories of Rusk, Wafers, and Croissants continued to deliver double-digit growth for consecutive quarters despite the transitionary headwinds, driven by strong momentum in the e-commerce channel, also aiding the in-home consumption of BRITS’s indulgent and impulse product range of Fudge It Cakes, Pure Magic Stars and Tarts, Jim Jam, Little Hearts etc.
* BRIT aims to drive the business through healthy volume-led growth and continue to strengthen its presence across different geographies with regional consumer-centric product and distribution strategies and price competitiveness while leveraging its brand strength to sustain market leadership amid the proliferation of multiple local players in different states and regions.
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