Britannia Inds. Q2 FY27 Results (NSE: BRITANNIA)
Signal: Margin pressure
The read
The trajectory improved materially on revenue, with consolidated growth accelerating to +15.6% YoY from +8.2% in Q1FY27, but this is not yet a clean earnings inflection: gross margin compressed 203bps YoY to 39.6%, EBITDA margin fell 147bps to 18.3%, and PAT growth of 10.8% was partly supported by other income rising 41.0% to ₹73.51 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,597.79 Cr | +15.6% | +12.0% |
| EBIT | ₹1,021.65 Cr | +7.0% | |
| Net profit | ₹725.99 Cr | +10.8% | |
| EPS | ₹29.93 | +10.2% | |
| EBIT margin | 18.3% |
P&L walk
Revenue accelerated to ₹5,597.79 crore, +15.6% YoY and +12.0% QoQ, but gross margin fell to 39.6%, -203bps YoY, as material costs rose 22.3%; EBITDA increased to ₹1,021.65 crore, +7.0%, with margin down 147bps, while PAT rose 10.8% partly helped by higher other income.
Segments
The Group reports one operating segment, Foods; the consolidated group outperformed the parent on PAT, with consolidated PAT of ₹725.99 crore versus standalone PAT of ₹705.54 crore, indicating subsidiaries and associates added ₹20.45 crore to reported profit despite a consolidated associate loss of ₹3.46 crore.
Key positives
- Consolidated revenue reached ₹5,597.79 crore, +15.6% YoY and +12.0% QoQ, accelerating from +8.2% YoY in Q1FY27.
- Employee benefits and other expenses grew 10.2% YoY versus revenue growth of 15.6%, helping combined intensity decline to 21.4% of revenue from 22.4%.
- H1 operating cash flow improved to ₹935.94 crore from ₹369.87 crore, while H1 PAT rose 12.3% to ₹1,319.37 crore.
- Consolidated PAT of ₹725.99 crore exceeded standalone PAT of ₹705.54 crore, showing a positive ₹20.45 crore group contribution despite associate losses.
Key concerns
- Gross margin compressed 203bps YoY to 39.6% as raw-material cost rose to 57.8% of revenue from 54.7%; the filing does not disclose the cause or current-quarter pricing/volume split.
- EBITDA grew only 7.0% YoY to ₹1,021.65 crore against revenue growth of 15.6%, leaving EBITDA margin 147bps lower at 18.3%.
- Inventory increased to ₹2,322.67 crore from ₹1,345.93 crore at 31 March 2026, while net debt rose ₹1,169.65 crore to ₹2,175.04 crore.
- Standalone PAT grew only 2.3% YoY to ₹705.54 crore because other income fell from ₹110.13 crore to ₹72.09 crore; the year-ago standalone quarter included ₹58.94 crore of subsidiary dividends.
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