Britannia Q2 Results: Revenue Surges 15.6% To Beat Estimates. So Why Did Margins Shrink?

Margin shrank as materials consumed, purchases of stock-in-trade, change in inventories rose to Rs 3,378 crore.

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Britannia announced July to September quarter results for financial year 2026-27 on Thursday, November 5. The FMCG giant's net profit rose 10.2% to Rs 721 crore in the second quarter of the current fiscal from Rs 654 crore in the corresponding period last year. The bottomline marginally beat Bloomberg estimate of Rs 720 crore.

Revenue from operations jumped 15.6% to Rs 5,598 crore for the quarter ended on September 30, 2026 from Rs 4,841 crore in the same quarter previous year. in terms of operations, Ebitda climbed 7.1% to Rs 1,023 crore in the quarter under review from Rs 955 crore in Q2FY26. Ebitda margin expanded 18.3% year-on-year from 19.7%. Margin shrank as materials consumed, purchases of stock-in-trade, change in inventories rose to  Rs 3,378 crore in the quarter from  Rs 2,823 crore in the corresponding quarter previous year.

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Speaking on Q2 performance, Britannia Industries Chief Executive Officer and Managing Director Rakshit Hargave said, “Our Bakery and adjacency portfolio – alongside the International business, registered strong acceleration complementing the Biscuit growth. Sequentially, we witnessed strong quarter-onquarter momentum, clocking a 12% top-line and 22% bottom-line growth."

Reflecting on the company's strategy, he said, "Our brand investments remained focused on driving consumer relevance through cultural and digital-first campaigns. Our festive-led activations — such as the Bourbon collaboration for Ganesh Chaturthi and the 50-50 Cheeze Dipped campaign for Onam — unlocked deep regional affinity, ably supported by our efficient on-ground execution across “Many Indias”, while targeted moment marketing and platform-specific activations on brands like Little Hearts, Winkin' Cow, and NutriChoice deepened connections across diverse consumer cohorts."

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He added, "We remain watchful of the inflationary pressures while staying agile in our actions to drive sustainable, profitable growth accentuated by strong execution, innovations and disciplined cost efficiency.”

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