Britannia Industries Reports 23.2% Increase in Q2 Profit to Rs 655 Crore Driven by Cost Optimisation

Britannia Industries Ltd, a bakery food company, reported a significant increase in its consolidated net profit for the September quarter. The profit rose by 23.23 per cent, reaching Rs 655.06 crore, compared to Rs 531.55 crore in the same period last year. This growth was attributed to stable commodity prices and effective cost optimisation strategies.

Revenue from product sales saw a 4 per cent rise, amounting to Rs 4,752.17 crore during the quarter. Additionally, revenue from operations increased by 3.7 per cent to Rs 4,840.63 crore, up from Rs 4,667.57 crore in the previous year's corresponding quarter.

Profit Growth and Revenue Increase

Varun Berry, Vice Chairman and Managing Director of Britannia Industries, highlighted that the company's profits grew by 23.2 per cent due to stable commodity prices and ongoing cost optimisation efforts across the value chain. Total expenses remained steady at Rs 4,005.84 crore in the second quarter of FY26.

The company's total income, which includes other income sources, rose by 3.8 per cent to reach Rs 4,892.74 crore in the September quarter. In the first half of FY26, Britannia's total income experienced a growth of 6.12 per cent, amounting to Rs 9,571.97 crore.

Impact of GST Rate Changes

The recent GST rate rationalisation announced by the government is expected to boost consumer demand and improve economic sentiment in India. However, transitional challenges related to GST changes affected supply chains and trade channels during the latter part of the quarter.

Despite these challenges, adjacent bakery categories such as rusk, wafers, and croissants continued to show double-digit growth for consecutive quarters. This was driven by strong momentum in e-commerce channels and increased in-home consumption of indulgent products.

Future Outlook and Strategies

Looking forward, Britannia aims to achieve healthy volume-led growth by strengthening its presence across various geographies with regional-consumer-centric strategies. The company plans to maintain price competitiveness while leveraging its brand strength to sustain market leadership amidst increasing competition from local players.

Varun Berry stated: "Looking ahead, we aim to drive the business through healthy volume-led growth as we continue to strengthen our presence across different geographies with regional-consumer-centric product and distribution strategies, price competitiveness, while leveraging our brand strength to sustain market leadership amidst the proliferation of multiple local players in different states and regions."

The company expects that any short-term impacts from GST-related changes will normalise progressively in the coming quarters.

With inputs from PTI