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Britannia Sold 13% More by Volume. Its Profit Grew Just 10.8%.

By Ananya Garg

Updated on November 7, 2026
IST 4:23 pm

Britannia Industries sold 13 per cent more by volume in the July–September quarter and lifted consolidated product sales 16.6 per cent to ₹5,542 crore. Net profit grew more slowly, up 10.8 per cent to ₹726 crore, because costs rose faster than revenue. The gap captures where packaged food stands right now: shoppers are buying more, but the business of feeding them is getting dearer.

The quarter in numbers

Britannia announced its results for the second quarter of 2026-27 after market hours on Thursday, 5 November. Revenue from operations came in at ₹5,598 crore, up from ₹4,841 crore a year earlier, according to Business Standard and Upstox. Product sales alone were ₹5,542 crore, and the company said that growth was “led by volume growth of 13 per cent”.

Consolidated net profit rose 10.8 per cent to ₹726 crore, from about ₹655 crore. For the first half of the year (April to September), sales grew 13.1 per cent to ₹10,506 crore, net profit rose 12.3 per cent to ₹1,319 crore and volumes were up 11 per cent.

The jump over the previous quarter was sharp too. Chief executive and managing director Rakshit Hargave said revenue rose 12 per cent and profit 22 per cent compared with April–June.

From 3.7% to 16.6%

The comparison matters because a year ago Britannia was barely growing. In July–September 2025 its revenue rose just 3.7 per cent to ₹4,841 crore, even as net profit climbed 23.1 per cent to ₹654 crore, Business Standard reported at the time. Profit was coming from margins, not from selling more.

The company then changed tack. It responded to last year’s GST changes partly by increasing grammage, that is, putting more product in each pack. By the end of October 2025, 65 per cent of its portfolio had seen a grammage increase, and management expected the whole range to reflect the bigger packs and GST-related pricing by mid-November. It said it would chase volume-led growth by targeting regions and staying price-competitive in each of them.

This quarter’s 13 per cent volume growth suggests that bet is paying off. “We sustained strong top-line momentum during the quarter, delivering a healthy double-digit volume and value growth,” Hargave said.

Growth beyond biscuits

Biscuits remain the core of the business, but the fastest growth came from elsewhere. Bakery adjacencies such as cakes, rusk, wafers and croissants grew more than 20 per cent, dairy products including cheese and ghee posted double-digit growth, and the international business returned to mid-teens growth, according to Angel One’s summary of the results. Business Standard and Upstox also pointed to strong acceleration in the bakery-adjacency and international businesses.

The company did not give a separate growth figure for biscuits this quarter.

Why profit lagged sales

Costs rose faster than income. Total expenses climbed 17 per cent to ₹4,690 crore, ahead of the 15.6 per cent rise in revenue from operations. EBITDA (earnings before interest, tax, depreciation and amortisation) rose about 7 per cent to ₹1,023 crore from ₹955 crore, and the EBITDA margin slipped to 18.27 per cent from 19.73 per cent, Upstox reported.

Britannia did not name the inputs behind the squeeze, but its tone was cautious. “We remain watchful of the inflationary pressures while staying agile in our actions,” Hargave said.

The stock market’s reaction was measured. Shares were up 2.32 per cent in morning trade on Friday, 6 November, according to Angel One, after touching a 52-week low of ₹4,499.90 on 28 October, according to Upstox.

What to watch

The base effect. Britannia expected its bigger packs to be fully on shelves by mid-November 2025. From the October–December quarter onwards, it is comparing against a period that already had them, so 13 per cent volume growth will be harder to repeat.
Margins versus pack sizes. If input costs keep rising, the company has to choose between thinner margins, price increases or smaller packs. Each would show up for shoppers in a different way.
Peers. Tata Consumer Products reported a 14 per cent rise in revenue to ₹5,661 crore for the same quarter, with its Tata Sampann staples brand up 57 per cent. Results from other packaged-food makers will show whether the demand pick-up is broad-based.
Inflation data. The next retail inflation print will show whether the cost pressure Britannia flagged is reaching the wider food basket.