Britannia Industries reports a 14% rise in quarterly net profit, navigating higher transportation and fuel costs driven by West Asia tensions through strategic price adjustments and volume growth, as the company prepares for further price hikes to sustain margins.
Britannia Industries said Thursday that its consolidated net profit rose 14.08% in the June quarter as higher volumes and selective price increases helped offset a sharp rise in transport and fuel costs tied to tensions in West Asia.
The biscuit maker reported profit of ₹593.38 crore for the first quarter of FY27, up from ₹520.13 crore a year earlier, according to a regulatory filing. Revenue from product sales climbed 9.47% to ₹4,964.37 crore, while revenue from operations increased 8.17% to ₹4,999.97 crore. Total income, which includes other income, rose 8.16% to ₹5,061.38 crore.
Managing director and chief executive Rakshit Hargave said the conflict in West Asia drove up fuel and shipping expenses across Britannia’s domestic and international businesses, but added that the company was able to navigate the pressure while still delivering healthy volume and value growth. He said several key categories gained momentum through the quarter, helped by faster growth in e-commerce, solid performance in general trade and heavier spending on advertising, influencers and promotions.
Britannia also said its overseas business improved sequentially as supply chain constraints eased towards the end of the quarter. The company’s expenses rose 7.27% to ₹4,262.24 crore, underscoring the margin strain from higher input and logistics costs even as sales improved.
The company is now preparing further price action to protect profitability. Moneycontrol reported that Britannia plans selective price increases and smaller pack sizes to offset higher costs linked to palm oil, laminates, fuel and freight. Hargave said the company has forward contracts covering palm oil needs for the next five months, but that it remains exposed to broader inflationary pressure.
Looking ahead, Britannia said it will keep a close watch on geopolitical developments in West Asia and crude oil volatility, both of which could affect international operations and domestic input costs. Hargave said the company aims to sustain revenue growth through innovation, stronger brand investment and tighter control of margins, even as consumer demand improves and competition in the packaged-food market remains intense.
Shares of Britannia ended the session at ₹5,430 on the BSE, down 0.26% from the previous close.
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