Q1 2027 Britannia Industries Ltd Earnings Call Transcript
Key Points
- Revenue from operations grew 9.5% year-over-year, with standalone growth at 10%, and PAT growth of 13.6%.
- General trade channel growth accelerated to 1.5 times the previous year's rate, indicating strong demand recovery.
- E-commerce and other modern channels grew at 2.5 times the rate of general trade, with e-commerce seeing strong double-digit growth.
- Innovations like Croissant and Brownie Pocket Cake are performing well, with Croissant growing at over 30% CAGR and contributing accretive margins.
- The company is confident in its strategic initiatives, including regional empowerment and localized marketing, which are driving market share gains across multiple biscuit categories.
- Input costs are rising, particularly for LPG/CNG, palm oil, and sugar, which have increased significantly and may pressure margins.
- The company could only mitigate half of the inflation through price increases, with the other half impacting profitability.
- International business faced headwinds, especially in the Middle East and North America, though Africa showed strength.
- The company did not book any PLI incentives in FY26 or Q1 FY27 due to not meeting threshold growth, which could impact future earnings.
- The GST rate cut benefit is not expected to be immediate for Britannia, as a significant portion of sales are in INR5 and INR10 packs, where consumer price remains unchanged.
Ladies and gentlemen, good day and welcome to Britannia Industries Limited's Q1 FY27 earnings conference call.
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Ayush Agarwal from Investor Relations. Thank you and over to you, Mr. Agarwal.
Good morning, everyone. This is Ayush, from the Investor Relations team. I welcome you all to the Britannia earnings call to discuss the financial results of quarter one for financial year 2026-'27.
Joining us today on this earnings call is our Managing Director and CEO, Mr. Rakshit Hargave; Executive Director and CFO, Mr. N. Venkataraman; Chief Marketing Officer, Mr. Puneet Das; Chief Manufacturing and Procurement Officer, Mr. Manoj Balgi; Vice President, Marketing, Mr. Siddharth Gupta; and Vice President, Corporate Finance, Mr. Ramamurthy Jayaraman.
The analyst deck is uploaded on our website.
Before I pass it on to Mr. Rakshit
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