1. Opening Hook
Remember when biscuits were just snacks and not GDP indicators? Well, Britannia’s Q2 FY26 call proved once again that India’s economic sentiment rises and falls with tea-time. 🍪 The GST 2.0 rollout did shake the cookie jar — 85% of their portfolio got hit, shelves de-stocked, and distributors panicked harder than traders hearing “new tax regime.” But CEO Varun Berry’s calm assurance — “the lull before the storm” — made investors double-check if he meant a sugar rush or revenue explosion.Keep reading, because what comes next is a sweet mix of growth optimism, regional flavor, and some calorie-free corporate banter.
2. At a Glance
- Revenue up 4.1%– GST chaos took a bite, but biscuits still crunched profits.
- PAT up 23%– Bottom line rose faster than a baked puff.
- Margins stable at 13.8%– Even inflation couldn’t dunk them.
- EBIT up 23%– The CFO’s PowerPoint finally earned applause.
- Stock unmoved (yet)– Traders waiting for “double-digit” storm Varun promised.
- Employee cost down 20%– No layoffs, just fewer ESOP calories.
3. Management’s Key Commentary
Varun Berry:“This was a growth of 4.1% on top line and 23.1% on bottom line.”(Translation: Revenue yawned, profit flexed.)
On GST 2.0:“It caused temporary de-stocking but it’s an important long-term reform.”(Translation: Government gave us a tax workout; we came out fitter.)
On Regional Rivals:“Small local players gained, but compliance will push the share back to organized players.”(Translation: GST will finally send half the competition back to WhatsApp groups.) 😏
On Tiger Doodh Glucose:“We added a ‘reason why’ to Tiger – a milk-rich recipe.”(Translation: Rebranding glucose biscuits with nostalgia and lactose.)
On Commodities:“All within control.”(Translation: CFO hasn’t cried in weeks. That’s progress.)
On Dairy:“Performance isn’t what we’d expected. Cheese market slowed.”(Translation: Too many pizzas, not enough cheese pull.)
On Ad Spends:“Normalized now and will continue.”(Translation: Expect to see biscuits in every IPL ad break again.)
On Rakshit Hargave’s appointment as CEO:“He’ll handle everything, I’ll just help.”(Translation: The empire’s handover
is smooth—Varun’s now Gandalf, not Frodo.)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | YoY Change | Comment |
|---|---|---|---|---|
| Revenue | ₹4,142 Cr | ₹3,979 Cr | +4.1% | GST 2.0 took a nibble |
| Operating Profit | ₹758 Cr | ₹616 Cr | +23% | Efficiency wins |
| PBT | ₹771 Cr | ₹620 Cr | +24% | Consistent rise |
| PAT | ₹570 Cr | ₹463 Cr | +23% | “Bottom-line Berry” delivers |
| EBITDA Margin | 18.3% | 16.5% | +180 bps | Cost control + commodity calm |
| Ad Spend | ~4% of sales | 3.5% | ↑ | Back to full-volume marketing |
| Women workforce | 45% | 44% | +1% | The most inspiring 1% rise |
| Renewable energy usage | 45% | 32% | +13% | Biscuits now baked greener |
De-stocking cost 2-2.5% revenue hit; expect “storm” in Q3 when shelves refill.
5. Analyst Questions
Abneesh Roy (Nuvama):“Lull before the storm — grammage or compliance?”Varun:“Compliance wins. GST 5% will push out the small fry.”(Translation: Government’s tax recipe now favors big ovens.)
Avi Mehta (Macquarie):“Demand environment and RSU cost?”Varun:“Demand picking up, RSU negligible.”(Translation: Staff happier, biscuits moving faster.)
Latika Chopra (JPMorgan):“Margins safe if incentives drop?”Varun:“Maybe a haircut, not a buzzcut.”(Translation: Margins might slim for volume gain.)
Kunal Vora (BNP):“Consumers count biscuits?”Varun:“Yes, they notice every missing cookie.”(Translation: Don’t mess with a Rs.10 pack.) 🍪
6. Guidance & Outlook
Management expects
