BRITANNIANSEFinancial Year 2025-26November 07, 2025

Britannia Industries Limited

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125turns

13analyst exchanges

7executives

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Management on call

Varun Berry

EXECUTIVE VICE CHAIRMAN, MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER

N. Venkataraman

EXECUTIVE DIRECTOR & CHIEF FINANCIAL OFFICER

Vipin Kataria

CHIEF COMMERCIAL OFFICER, SALES & REPLENISHMENT

Manoj Balgi

CHIEF MANUFACTURING & PROCUREMENT OFFICER

Siddharth Gupta

GENERAL MANAGER, MARKETING

Ramamurthy Jayaraman

GENERAL MANAGER, CORPORATE FINANCE

Ayush Agarwal

INVESTOR RELATIONS

Key numbers — 40 extracted

4.1%

g into the presentation, getting to the business overview slide, the quarter has been a growth of 4.1% on the top line and 23.1% on the bottom line. Next slide is about the GST rate rationalization, t

23.1%

getting to the business overview slide, the quarter has been a growth of 4.1% on the top line and 23.1% on the bottom line. Next slide is about the GST rate rationalization, the GST 2.0, which was a ve

85%

t the GST rate rationalization, the GST 2.0, which was a very welcome move by the Government. So, 85% of our business underwent a change in GST rates with effect from 22nd September 2025, which did

reasonable, I would say. So, if you were to look at flour versus the previous quarter, we are up 2% in price versus last year, same quarter, we are up 6%. So, all these are numbers which are within

lour versus the previous quarter, we are up 2% in price versus last year, same quarter, we are up 6%. So, all these are numbers which are within a range. Palm oil sequentially is down, versus last y

versus last year of course, it's up because that's when the uptick happened. And similarly, sugar 1% sequentially, 3% versus last year. Cocoa as well, 5% sequentially, 9% versus last year. Laminates

of course, it's up because that's when the uptick happened. And similarly, sugar 1% sequentially, 3% versus last year. Cocoa as well, 5% sequentially, 9% versus last year. Laminates as well, 2% and

en the uptick happened. And similarly, sugar 1% sequentially, 3% versus last year. Cocoa as well, 5% sequentially, 9% versus last year. Laminates as well, 2% and 1%. Milk, slight inflation, but that

pened. And similarly, sugar 1% sequentially, 3% versus last year. Cocoa as well, 5% sequentially, 9% versus last year. Laminates as well, 2% and 1%. Milk, slight inflation, but that's the seasonal i

rs,

exciting products under the Pure Magic brand now - we have got Choco Tarts, we have got ChocoStars, we have got the Chocolush, which has always been there, and Choco Frames, which has got the Harry

100%

t. So, very exciting products and we had a campaign around that. We have also got the NutriChoice 100% millet cookies, where it's doing quite well. It's got 100% millets, no maida, no palm oil, and no

13%

is concerned. Moving on to the next slide, which is on ESG. Our renewable energy has gone up by 13% to almost 45%. We have had a reduction in the water consumption in most of our plants. The wome

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Guidance — 20 items

Varun Berry

opening

“On medium-term business outlook, I think we are now very clear that we have got the kind of profitability that we have always desired.”

Varun Berry

“Obviously, there will be gains because of the grammage that we are increasing but I think the market share gains because of this are going to be definitely moving towards the organized players.”

Abneesh Roy

“So, my key question here is, in terms of obviously great track record, I wanted to understand what will be the key priorities once he joins, between your role and his role, what will be the transition, what will be any demarcation, if I can understand that bit and any thought process on why he was hired?”

Varun Berry

“He is going to handle the entire business, and my job will be to help him wherever he needs any help.”

Varun Berry

“My job will be to run him in and make sure that he settles down absolutely well in the role.”

Varun Berry

“And things are looking good in the East and we hope to continue that momentum.”

Mihir Shah

“And any additional you will be investing in ad spend, is that how one should think about it?”

Varun Berry

“So, there will be a certain amount of investments that we will make to get our products and brands in certain regions to be competitive, and those will be investments that we are making.”

Aditya Soman

“And second, to tie that up with the other comment that you made that you expect to gain market share from some of these smaller players, again, would this trend be true also of the regional players that you mentioned which potentially gained market?”

Varun Berry

“So, this trend will be true of the regional players only.”

Risks & concerns — 13 flagged

So, Varun, firstly, your statement that it is lull before storm and a very aggressive top-line growth, is it based on the 10% to 13% grammage addition which will happen in the LUP and that's a very large portion of the Biscuit's portfolio or is it based on the compliance levels improving in the local players because (+500) players at 5% GST rate, the risk reward of not being compliant is not favorable.

— Abneesh Roy

So, that is when you will start to see the impact of that.

— Varun Berry

And as we speak, we are seeing a very positive impact of this.

— Varun Berry

So, that is the impact of our provision.

— N. Venkataraman

We believe that the full impact of the soft raw material prices is yet to be seen.

— Mihir Shah

When it was 18%, the risk reward was in their favor.

— Varun Berry

Do you see any material risk because of those state incentives not coming your way in December quarter or March quarter or there is no near-term risk on margins on account of that in case, your request to state government doesn't play out?

— Latika Chopra

Do you sense any risk to rural growth trajectory at a very broader level?

— Latika Chopra

Now, if you are going to see an increase in volumes, is there a risk that over a period of 3-6 months, overall her volume of biscuit that she eats is going to remain similar and therefore, you will actually see a value reduction, which obviously can be offset by market share gains and therefore, sort of growth remaining in the same 8%-9% range.

— Sidharth Negandhi

So, this also has the impact of volume being lower compared to the comparable period - the growths.

— N. Venkataraman

Let me answer one at a time because when you fire at three at a time, it becomes difficult.

— Varun Berry

So that is going to be a challenge and a strategy for us as we move forward.

— Varun Berry

Now, is it right to understand that say the negative impact of palm oil and all is completely behind with the price hikes and the cost of the initiatives we have taken?

— Nihal Jham

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Q&A — 13 exchanges

Thanks. Good morning. Three questions. So, Varun, firstly, your statement that it is lull before storm and a very aggressive top-line growth, is it based on the 10% to 13% grammage addition which will happen in the LUP and that's a very large portion of the Biscuit's portfolio or is it based on the compliance levels improving in the local players because (+500) players at 5% GST rate, the risk reward of not being compliant is not favorable. Do you see market share gains for you from the local players because of the GST rate and compliance? Which is the bigger reason?

Varun Berry

It's, I think, the latter. Obviously, there will be gains because of the grammage that we are increasing but I think the market share gains because of this are going to be definitely moving towards the organized players. You are absolutely right about what you said. So, this is going to give us upper hand as far as the growths are concerned and shares are concerned. One or two follow-ups here. You mentioned on the Tiger relaunch Tiger Doodh, etc. So, to fight against the local players, yes, GST is definitely going to help you. But now do you need a more flanking price warrior kind of a product

Hi, sir. So, just two questions. One, if you could give us a sense on how is the underlying demand environment, basically, how much is the GST impact and by when does it fully normalize? And the second bit was on the quantum of the employee cost impact because of the RSU? So, that I can understand the steady-state run-rate there. Thank you.

Varun Berry

So, see, the RSU impact has been very minimal this time. So, that's not an impact at all. Now, on the demand scenario, the thing is that what we did when this GST implementation had to happen, which was 22nd, we had about 16-17 days to implement it. And as you know 65% of our portfolio is Rs. 5 and Rs. 10. So, and we had to pass the benefit to the consumer. So, what we did was we marked up pricing as Rs. 4.50 paisa and Rs. 9 for the Rs. 5 and Rs. 10 products. Now, you know as well as I do that, when you get to the market, it will not sell for Rs. 4.50 or Rs. 9, it will sell for 5 and 10. So, t

Hi, sir. Thank you for taking my question. So, firstly, on the volume growth this quarter, I know it has impacted. But what is the range for volume growth, essentially, for this quarter? I am trying to understand the pricing that was there for this quarter and the pricing that can get carried forward for the coming quarter as well.

Varun Berry

You are asking about the quarter that we are sitting in? Yes, 2nd Quarter, essentially understanding what was the pricing growth in the 2nd Quarter and what is the level of pricing growth can be carried forward or that we will continue to see in the second half of the year. See, it's going to be a very different scenario. But the pricing growth was approximately 7% to 8%. And now with the GST changes, etc., the pricing is very different. We have taken the drops as far as large packs are concerned. And we have taken grammage increases as far as the small packs are concerned. So, it's not going

Hi. Good morning. So, two questions. First, you sort of mentioned increased focus and you have also mentioned making investments in the regional competition. In your opening comments, you also indicated that some regional competitors have gained share on the margins. So, can you throw a little more light on what exactly is happening? Is this a function of them launching differentiated products or it's just a sort of pricing gap? And second, to tie that up with the other comment that you made that you expect to gain market share from some of these smaller players, again, would this trend be tru

Varun Berry

So, this trend will be true of the regional players only. I think Abneesh had made a very telling comment in the beginning. Basically, what he said is exactly what's going to happen. Basically, there are host of these small regional players who operate in very small territories, produce product. We don't know their compliance on taxation. When it was 18%, the risk reward was in their favor. But now it's 5%, I don't think it's going to make that much of a difference. So, our competitiveness of the players who comply with the rules of the land is now going to be holding us in really good stead t

Hi, Varun and team, 2-3 questions from my side. Let me just put them up front. So, first is, can you call out the growth for the September quarter adjusted for the GST pipeline disruption? Secondly, because of the GST rate cut, there will be some probable reduction in the government incentives because they get funded through the GST refunds. So, can you call out in rupees crore, how much will that incentive fall? And secondly, if you are receiving lesser incentive, are you able to sort of offset that in some other way in terms of how much price reduction or grammage increase you are taking or

Varun Berry

So, the first question I have already answered. I think we could have grown by 2% to 2.5% more last quarter if the disruptions hadn't happened. Because the last month was we could have grown 6% - 6.5% - 7% more. So, that got down and that's why it came down by about 2% to 2.5%. What was your second question? Government incentives. So, government incentives, yes, I will let Venkat answer that. Venkat, you want to answer that? So, your first question in fiscal incentive was whether the benefit of reduction in GST rates have been passed on to the consumer as required? Yes, we have. And like Varun

Hi, Varun. Most of my questions are answered, but I have a few clarifications. First one was, adjusting for GST if the revenue growth stood at 6% to 6.5%. This was a moderation from 9% in Q1. What led to this? Is it because of the category growth of moderating or was it due to the market share challenges that you alluded to?

Varun Berry

No, it's not about market share challenges, Latika. It was also the timing of Diwali, etc. This time Diwali came a little earlier and certain other festivals in the south, etc. So, it was just a timing thing. It wasn't anything else. Our momentum was very similar. And we were really hoping to see a very-very good September. But unfortunately, it did get stymied a bit. All right. The second bit was you mentioned by mid-November, the GST impact will normalize. Does it mean that for the full December quarter, you will not see any negative impact, right? It will get flapped up in the second half o

Thanks for the opportunity. Firstly, on biscuits, in your experience, how do consumers react when you add or remove a biscuit or change grammage in a Rs. 5-10 pack? Does it have any meaningful impact on the number of packs you sell?

Varun Berry

Yes, the Indian consumer is extremely cost-conscious, and they are absolutely aware of how many biscuits, what grammages go in the various brands that are available in the market. So, it makes a difference. If you have instead of 9 cookies, instead of 8 cookies in a pack, does it like in any way reduce the number of packs you will be able to sell? Yes, absolutely. The consumers are very perceptive. So, yes, if you reduce the number of biscuits, we see impact on transaction. Similarly, when you add biscuits, the transaction tends to move up. Second is on dairy. How is Ranjangao Dairy performing

Hi, good morning. I just had three questions. First was, is there any inverted duty structure impact on the margins that you have? For example, your costs, some of them are at 18% and bulk of your business now is at 5% on the output. That's my first question. The second one was on how large is this pool of small and regional players that you allude to? Because 70% of the market is top three and then you have certain large, smaller players as well, organized smaller players. So, in terms of size of market, how large would this pool be? And the third question was in your quest to increase the vo

Varun Berry

Now, let me start with your last question. So, the competitiveness that we are talking about holds to all of our categories that we operate in, whether it's cake, rusk, dairy, biscuits, croissant, all of these categories, wherever we feel that we need to be more competitive in a certain region and we are not talking about a broad brush across the country. It's going to be a very region, state- led strategy that we are going to follow with not just pricing but with variants, etc. So that we are able to compete very aggressively with these competitors. And so that's going to be across. We are no

Thanks for taking my question. My first question is around; would you like to offer any comments around your regionalization strategy at this stage?

Varun Berry

Well, the strategy is that we meet the consumer needs on a regional state basis. If there is a requirement to launch, let's say, to give you a live example of a jeera biscuit in the east, then that's what we need to do. It will be produced locally and will be supplied to the market there. And if there's a requirement of having a different type of Marie biscuit, in a certain part of the north region, then that's what we will do. And that's what we are looking at. Even some of our products will have different recipes if required suiting the regional and the state requirements. So, that is the ge

Hi, thank you for taking my question. A couple of things. First, just one, you mentioned about the cheese market demand sort of being impacted. If you could throw some color on, do you see this being more short term? Are you seeing certain changes in consumer behavior there? And the second one was on your biscuit volumes; you mentioned that the Indian consumer is very cost conscious in terms of number of transactions he does. Now, if you are going to see an increase in volumes, is there a risk that over a period of 3-6 months, overall her volume of biscuit that she eats is going to remain simi

Varun Berry

So, on the first one, I think it's, as a result of all the inflation that we have seen in the last 2 years, the impact has been certainly temporary. Obviously, this was impacting the consumer's pocket. And these are all discretionary spends. Cheese is not like a biscuit, which you have to have every day. So, there must have been a cutback there. But now with this GST 2.0, with prices coming down, with the consumer feeling a little more good on the pocket, I think this will certainly come back because this has been probably the only year where on a cheese growth, we have seen a slight decelerat

Hi, sir. I have a couple of questions. My first question is that during the GST transition, there was a lot of trade support provided by several industry players. So, have we also provided the trade support? And if yes, then what could have been its impact on our profit and loss?

Varun Berry

Yes, we did provide trade support during that time, but nowhere compared to what the other players did. So, ours was very minimal because we knew that this is going to only push product into the warehouses of distributors and in certain cases, large retailers. But the consumption would happen at the same pace. So, it doesn't give any consumption benefit to that extent. So, we kept it to the bare minimum. But we did do it because in the last week, we did do some trade support. Vipin, you want to comment? I think we were very cautious. And like Varun said, we didn't want the stock to pile up in

Yes, good morning, Varun, and team. Three questions. The first one was on market share. You mentioned about looking at it from a grid perspective. If I had to look at it from a product and geography perspective, which are the missing parts that we are obviously trying to fill in the gaps and that sort of helps us gain market share?

Varun Berry

Let me answer one at a time because when you fire at three at a time, it becomes difficult. So quickly on market share, you know that our focus has been on the Hindi belt. And the Hindi belt has been performing really well on a low base, albeit. So Hindi belt share gains have been very good. The second one where we have lost share is in the East and I have spoken about that as well. We have normalized our distribution infrastructure, and I would say not fully, but to a 90%. But from now on, we will start to see our market share and revenues and volumes moving in the right direction and in the

Thank you, everyone, for spending time with us on the call today. We look forward to interacting with you again in the future. Thank you and have a good day.

Varun Berry

Thank you.

Speaking time

Varun Berry

Moderator

Mihir Shah

Kunal Vora

Nitin Gupta

Percy Panthaki

Latika Chopra

Vipin Kataria

Abneesh Roy

N. Venkataraman

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Opening remarks

Ayush Agarwal

Thank you, Danish. Good morning, everyone. This is Ayush from the Investor Relations team. I welcome you all to the Britannia Earnings Call to discuss the Financial Results of Q2 for Financial Year 2025-26. Joining us today on this Earnings Call is our Executive Vice Chairman, Managing Director & CEO – Mr. Varun Berry, Executive Director and CFO – Mr. N. Venkataraman, Chief Commercial Officer (Sales and Replenishment) – Mr. Vipin Kataria, Chief Manufacturing and Procurement Officer – Mr. Manoj Balgi, General Manager (Marketing) – Mr. Siddharth Gupta and General Manager (Corporate Finance) – Mr. Ramamurthy Jayaraman. The analyst deck is uploaded on our website. Before I pass it on to Mr. Varun Berry, I would like to draw your attention to the safe harbour statement in the presentation. Over to Mr. Berry with remarks on the performance.

Varun Berry

Good morning, everyone. I have kept it really tight so that we have enough time for all your questions. So, jumping into the presentation, getting to the business overview slide, the quarter has been a growth of 4.1% on the top line and 23.1% on the bottom line. Next slide is about the GST rate rationalization, the GST 2.0, which was a very welcome move by the Government. So, 85% of our business underwent a change in GST rates with effect from 22nd September 2025, which did cause a little bit of de-stocking, etc., but it was temporary. This is an important step and I think this is going to make that change for the entire food industry as we move forward. All those things have been sort of sorted out and we are now back on a very smooth sail. Next slide is about market share. The market share, we have got a sustained healthy gap versus organized national players. There's a slight loss for the large players to multiple local regional competitors. So, as the profit pool of the industry be

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