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Britannia's Revenue Surges 6.8% on Pricing Hikes and EBITDA Growth
5 Nov
Summary
- Britannia's revenue expected to rise 6.8% in Q2 FY26
- EBITDA growth projected at 11.4% year-over-year
- Gross margin to improve 120 bps sequentially due to moderating raw material costs
As of November 5th, 2025, industry analysts at Yes Securities project that Britannia, the leading Indian food company, will see its revenue rise by 6.8% in the second quarter of the 2025-26 fiscal year. This growth is expected to be supported by previous price increases implemented by the company, as well as a robust double-digit year-on-year expansion in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
The brokerage firm estimates that Britannia's base business volumes will remain flat in Q2 FY26 due to a high comparative base, pricing actions, and a transitory impact from the Goods and Services Tax (GST). However, the strong pricing growth resulting from earlier price hikes is anticipated to drive the overall revenue increase of 6.8%. Additionally, moderating raw material inflation, particularly in palm oil, coupled with the benefit of a duty cut, is expected to lead to a 120-basis-point sequential improvement in gross margin, though it is expected to remain flat year-over-year.
Furthermore, the company's savings in operating overheads are projected to result in a 70-basis-point improvement in EBITDA margin, reaching 17.5%. Consequently, Britannia's EBITDA and Adjusted Profit After Tax (APAT) are estimated to grow by approximately 11.4% and 15.1% year-over-year, respectively.
