Mumbai, Aug 5 (IANS) Britannia Industries on Tuesday reported a drop in its net profit for the June quarter (Q1 FY26), as the biscuit maker’s consolidated net profit stood at Rs 520 crore, down 6.98 per cent quarter-on-quarter (QoQ) from Rs 559.13 crore in the previous March quarter (Q4 FY25).
Though, it was slightly higher than Rs 504 crore recorded in the same period previous year (Q1 FY25), according to its stock exchange filing.
Revenue from operations rose 3.64 per cent sequentially to Rs 4,534.86 crore, compared to Rs 4,375.57 crore in the previous quarter.
On a year-on-year (YoY) basis, revenue stood at Rs 4,622 crore, up from Rs 4,250 crore a year ago.
However, operating performance took a hit, with EBITDA falling to Rs 757 crore from Rs 801 crore in Q4 FY25, and margins slipping to a multi-quarter low of 16.4 per cent.
The company said inflation in key raw materials and higher employee benefit expenses weighed on its margins, which fell 135 basis points year-on-year.
Demand from urban consumers remained subdued due to rising living costs, affecting overall consumer goods sales.
Britannia Managing Director Varun Berry said the company’s execution strategy — focused on getting more value from existing outlets, improving servicing to key stores, and boosting efficiency — helped achieve 10 per cent sales growth and strong double-digit growth in its four focus states and adjacent bakery categories like rusk, wafers, and croissants.
He added that moderating inflation has led to a slight recovery in consumption in both urban and rural markets, enabling the company to return to double-digit growth.
Berry also highlighted Britannia’s continued push towards premiumization through new launches in its Pure Magic range and Crafted Cookies under the Good Day brand, alongside sustained investment in its core brands through marketing campaigns.
The results were announced after market hours on Tuesday. The shares closed at Rs 5,640, down by Rs 147or 2.54 per cent on the National Stock Exchange (NSE).
–IANS
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