Britannia reports strong Q2 growth despite GST 2.0 disruption

Britannia Industries announced a 4.1% top-line growth and a 23.1% bottom-line increase for Q2 FY25-26. This performance came despite a temporary 2-2.5% revenue disruption in the third month of the quarter due to new GST 2.0 implementation, which saw 85% of the business undergo rate changes. The company anticipates aggressive top-line growth moving forward, fueled by grammage increases and market share gains from regional competitors as GST compliance levels improve.

Operating profit for the quarter grew by 23%, profit before tax by 24%, and profit after tax by 23%. Profit from operations reached 18.3%, profit before tax 18.6%, and profit after tax 13.8%. Britannia reported sustained healthy market share against organized national players. Commodity prices remained reasonable, with flour, palm oil, sugar, and cocoa showing manageable fluctuations.

Britannia is focusing on volume-led growth through region-specific consumer products, distribution enhancements, and price competitiveness. Investments in core brands continue, with new product launches like Pure Magic Choco Tarts and NutriChoice millet cookies performing well. Adjacency businesses like croissants, rusk, and wafers also reported strong double-digit growth. The company is actively working on improving dairy performance and exploring protein ready-to-drink options.