Britannia’s Q2 FY26 results were largely in line with expectations on sales and gross profit, but Ebitda margins were better than expected (highest in eight quarters), led by lower-than-expected staff costs (SAR costs-ESOP related) and other expenses.
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Nirmal Bang Report
There is no material change to our EPS forecasts for FY26E and FY27E.
As highlighted in our earlier report on Britannia Industries Ltd., we are extremely bullish on growth in the packaged foods space in India, especially given the huge addressable market and significant investments being made by key players.
Valuations of 52.7x FY27E EPS, however, do not leave much room for significant upside.
We continue to value Britannia at 50x Sep-27E EPS (in line with the five-year average P/E multiples) arriving at a target price of Rs 6,165 (Rs 6,235 earlier). We maintain our Hold rating on the stock.
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Also Read: Motilal Oswal Maintains 'Buy' On Piramal Pharma Despite Near-Term Headwinds; Q2 Results Review
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