When biscuits become as much about channel strategy as they are about cocoa prices, you know Britannia’s kitchen is busy. In Q1 FY26, the FMCG giant posted₹4,535 crore in revenue(+9.8% YoY) and aPAT up 3%, while juggling inflation, regional battles, and Harry Potter–themed launches. Varun Berry’s tone was equal parts coach’s pep talk and chess grandmaster’s mid-game analysis—after all, Milk Bikis Smart now literally comes with chess personalities baked in.
Why it matters now: Stable commodity prices after two years of turbulence give Britannia room to play offence on margins and market share, especially in under-penetrated Hindi heartland states where growth was 2.7x the rest of India.
Stick around—things get spicier two scrolls down.
AT A GLANCE• Revenue ₹4,535 cr – Calling 9.8% “10%” is peak FMCG optimism• PAT ₹522 cr – +3% YoY despite ₹52 cr SAR revaluation hit• Gross margin ~46% – Palm oil duty cuts yet to fully kick in• Hindi belt growth – +65 bps share gain, double-digit volumes
MANAGEMENT’S KEY COMMENTARY
- “Hindi belt growth is 2.7x other states.”Translation: We’ve found our new Ranji Trophy pitch.
- “We turned rural distributors into full-scale distributors.”Translation: More control, fewer middlemen, faster shelf dominance.
- “Premium product salience up 310 bps.”Translation: People are paying more for the same calories.
- “Rusk, Croissant, Wafers all growing 20–30%+.”Translation: The snack buffet strategy is working.
- “Commodity prices stabilising; worst is behind
- us.”Translation: We can finally stop playing Whac-A-Mole with MRPs.
- “Mega distributor restructuring in East hurt share temporarily.”Translation: Short-term pain, long-term logistics glory.
- “Q-commerce now 75% of e-comm sales.”Translation: Dark stores are our new kirana shop.
NUMBERS DECODED
| Revenue – The Hero | EBITDA – The Sidekick | Margins – The Drama Queen |
|---|---|---|
| ₹4,535 cr (+9.8% YoY) | ~₹650 cr* (+?) | Gross ~46%, EBITDA ~15%, PAT ~11.5% |
*EBITDA adjusted for SAR hit grows double digits. Revenue growth driven by pricing; volume growth just ~2%, but transaction growth at 12% shows strong brand pull. Margins flat QoQ, expected to lift in Q2 with palm oil duty cut and stable inputs.
ANALYST QUESTIONS
- On ITC & regional players– No price wars; East share loss is our own restructuring spill.
- On volume vs. value growth– Price-led for now; 6–8% delta to continue for 2–3 quarters.
- On SAR expense– Tied to
