Britannia Industries Q3 FY25 Results Update

Multiple Blue Rings

Britannia beats revenue expectations with 8% YoY growth; driven by resilient volumes (+6% YoY), despite taking a modest 2% price hike.

Q3 FY25 at a Glance

The quarter was marked by significant raw material inflation and commodity price surges.

Operating margins and earnings missed estimates with gross margins at 38.7% (down 5.15% YoY) and EBITDA margins at 16.8% (down 2.53% YoY).

Revenue Performance But  Margin Pressured

Initiated a 2% price hike in 3Q, with further increases of 2.5% in 4Q and 1.5% in 1Q26 (total ~6.5%), to help offset inflation. Expecting an additional 2.5% cost-efficiency improvement and relief from the fresh wheat crop arriving in March.

A strategic move to bridge the cost gap while keeping volume resilience in focus.

BALANCING ACT 

Channel Expansion: Strengthening RTM 2.0 initiatives in both urban and rural segments, with rural distributor network up by 70% since 2019.

Level 3

Blue Rings

Level 1

Blue Rings

Level 4

Blue Rings

Optimistic Outlook: Expecting gradual margin improvements and a pickup in market share, especially in focus states, ensuring a resilient long-term performance.

Eye on the Future