📌 At a Glance
Britannia Industries just dropped its FY25 results like a soggy Marie Gold in chai — and investors aren’t exactly dunking with joy. The FMCG giant posted a 35% YoY decline in standalone net profit — from ₹1,209 crore in FY24 to just ₹782 crore in FY25.
What happened? Did the nation suddenly stop eating biscuits? Or did inflation, raw material costs, and legal penalties finally take a bite?
Let’s break down what crumbled — and whether there’s still cream inside this cookie 🍪.
🏢 About Britannia Industries
- Britannia Industries Limited (BIL), India’s biscuit royalty, is part of the Wadia Group.
- Its empire spans Good Day, Marie Gold, Treat, and even dairy products.
- Operates in over 60 countries.
- Still dominates the ₹40,000 Cr+ Indian biscuit market… but the crumbs are being chased by Nestlé, ITC, and Parle.
💼 Key Managerial Personnel
| Name | Designation |
|---|---|
| Varun Berry | Executive Vice Chairman & MD |
| N. Venkataraman | CFO |
| T.V. Thulsidass | Company Secretary & Compliance Officer |
Board highlights:
- 12 directors, including Urjit Patel (Ex-RBI Gov), Tanya Dubash, and the evergreen Nusli Wadia.
- 50% Independent Directors – SEBI will be proud.
- Average age of the board: Old enough to remember when bread was rationed.
📊 FY25 Financials (Standalone)
| Metric | FY24 | FY25 | Change (%) |
|---|---|---|---|
| Revenue from Ops | ₹15,534 Cr | ₹16,301 Cr | +4.9% |
| EBITDA | ₹2,525 Cr | ₹2,148 Cr | -14.9% |
| EBITDA Margin | 16.3% | 13.2% | -310 bps |
| Net Profit | ₹1,209 Cr | ₹782 Cr | -35.3% |
| EPS | ₹50.2 | ₹32.5 | -35.2% |
🧂 Despite revenue growing, margins melted like Amul butter on a hot paratha. Cost inflation and price pressures ate into profitability.
🧮 Fair Value Estimation (Edu Mode ON)
Let’s be conservative (because Britannia sure wasn’t):
- Assume normalized EPS of ₹35.
- Apply a historic average P/E of 45 (because FMCG is India’s version of safe stocks).
- That gives us a forward fair value of ₹1,575 per share.
Current price: ~₹4,700
Wait what? Yes, because Britannia is priced like it manufactures gold-flaked biscuits.
📈 Growth Outlook
- Rural recovery = key trigger. Britannia has >35% market share in Tier-3 and below towns.
- Dairy segment scaling up – cheese, milkshakes, and yoghurts could offset biscuit boredom.
- Indonesia and Middle East expansion in progress.
- But competitors are getting aggressive. Nestlé just launched protein biscuits, and ITC is blitzing with regional flavors.
⚖️ Legal Fines, Minor Mishaps & Consumer Drama
In FY25, Britannia faced:
- A GST penalty of ₹8.98 lakh for input tax credit issues.
- A consumer dispute fine of ₹11,000 (biscuit drama in Dharmapuri).
- Another CGST penalty of ₹1.99 lakh for the wrong e-way bill!
Total financial impact? Tiny. But governance optics? 📉
Also, CEO Rajneet Singh Kohli exited on 14 March 2025, raising eyebrows.
🧠 EduInvesting Take
Britannia’s profits might be down, but don’t throw the cookie jar yet. The brand is iconic, the rural moat is real, and dairy + exports are promising levers. However…
“If you’re buying Britannia at 60x earnings, you better believe in immortality. Of both biscuits and bulls.”
🍪 Stock is richly priced, and margin pressures may linger till FY26.
⚠️ Risks & Red Flags
- High P/E – Valuation way above peers like Nestlé and ITC.
- Dairy capex might dilute focus.
- Wage inflation + raw material (wheat, milk) volatility.
- Exit of CEO raises leadership stability concerns.
- Regulatory fines could snowball if governance isn’t tight.
🔚 Verdict
If you’re an ultra-long-term investor who doesn’t mind paying a premium for quality — fine. But if you’re looking for multibaggers, Britannia might be too “baked” already.
Maybe… time to explore smallcap snacks instead?
Tags: britannia industries, biscuit stocks, fmcg stocks india, net profit fall, rajneet kohli exit, britannia ceo resigns, britania earnings fy25, biscuit market india
