Britannia Industries Ltd — Q2 FY26
Britannia reported Q2 FY26 revenue growth of 4.1% YoY, impacted by ~2-2.5% disruption from GST rate rationalization effective September 22, 2025.
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
75%Questions answered2Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Reason for aggressive top-line growth: gramage addition or GST compliance?
Asked by Abneesh Roy, Nuvama Capital
Management clearly identified the primary reason as GST compliance.
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Question
Is it based on the 10%-13% gramage addition which will happen in the LUP, or is it based on the compliance levels improving in the local players?
Varun Berry, Executive Vice Chairman, MD, and CEO
It's, I think, the latter. Obviously, there will be gains because of the gramage that we are increasing. But I think the market share gains because of this are going to be definitely moving towards the organized players.
Answered
Medium priority
Role demarcation between Varun Berry and new CEO Rakshit Hargave.
Asked by Abneesh Roy, Nuvama Capital
Management clearly explained the transition and role split.
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Question
What would be the key priorities once he joins between your role and his role? What will be the transition?
Varun Berry, Executive Vice Chairman, MD, and CEO
There is going to be nothing as a portfolio between him and me. He's going to handle the entire business, and my job will be to help him wherever he needs any help.
Answered
High priority
Underlying demand environment and GST impact normalization timeline.
Asked by Avi Mehta, Macquarie Capital
Management provided specific timeline and progress update.
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Question
If you could give us a sense on how is the underlying demand environment, basically, how much is the GST impact, and by when does it fully normalize?
Varun Berry, Executive Vice Chairman, MD, and CEO
End of October, about 65% of our portfolio has already got the increased gramages. By the middle of November, we will have our entire portfolio with the required gramages and the pricing.
Answered
Medium priority
Quantum of employee cost impact due to RSU.
Asked by Avi Mehta, Macquarie Capital
Management provided specific numbers for the provision.
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Question
The second bit was on the quantum of the employee cost impact because of the RSU.
N Venkataraman, CFO
The provision last year, quarter two, was about INR 50 crore. This year has been about INR 5 crore. That is the impact of our provision.
Partial answer
High priority
Volume growth and pricing growth for Q2 and outlook.
Asked by Mihir Shah, Nomura
Management gave pricing growth but did not quantify volume growth.
volume growth not quantifiedpricing growth given but not volume
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Question
What is the range for volume growth, essentially for this quarter? I am trying to understand the pricing that was there for this quarter.
Varun Berry, Executive Vice Chairman, MD, and CEO
The pricing growth was approximately 7%-8%. Now with the GST changes, etc., the pricing is very different.
Evasive
High priority
Margins: raw material benefit and target EBITDA margin.
Asked by Mihir Shah, Nomura
Management did not specify margin targets or confirm satisfaction with current margins.
no margin target givenredirected to investments
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Question
What kind of margins are you talking about? The current margins that we are seeing on EBITDA level or the gross level, is that what you're happy with?
Varun Berry, Executive Vice Chairman, MD, and CEO
There will be a certain amount of investments that we'll make to get our products and brands in certain regions to be competitive.
Answered
High priority
Adjusted growth for GST disruption and quantification.
Asked by Percy Panthaki, IIFL Securities
Management provided a specific percentage impact.
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Question
Can you call out the growth for the September quarter adjusted for the GST pipeline disruption?
Varun Berry, Executive Vice Chairman, MD, and CEO
I think we could have grown by 2%, 2.5% more last quarter if the disruptions hadn't happened.
Evasive
Medium priority
Impact on government incentives due to GST rate cut.
Asked by Percy Panthaki, IIFL Securities
Management did not provide any number, only said they are working on it.
no quantificationdeferred to future analysis
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Question
Can you call out in INR crore how much will that incentive fall?
N Venkataraman, CFO
That we need to work out currently. We are also looking at what else can be optimized to maximize the production in each of these factories.
Partial answer
High priority
Top-line growth trajectory after gramage increase.
Asked by Percy Panthaki, IIFL Securities
Management acknowledged the math but did not confirm the target.
no specific guidancehopeful but not committed
Read the exchange
Question
If you're giving 12% extra on 60% of your portfolio, that's 6%-7% more. Can we say that this 9% top-line growth will go to 15%?
Varun Berry, Executive Vice Chairman, MD, and CEO
It does not work absolutely mathematically. 9 + 6 is 15, we know that. We are hoping that we get to 9 + 6, but we could even get more than that.
Answered
Medium priority
Reason for moderation in adjusted revenue growth from Q1 to Q2.
Asked by Latika Chopra, JPMorgan
Management attributed the moderation to festival timing, not underlying issues.
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Question
If the revenue growth stood at 6%-6.5%. This was a moderation from 9% in Q1. What led to this?
Varun Berry, Executive Vice Chairman, MD, and CEO
It was also the timing of Diwali, etc. This time, Diwali came a little earlier, and certain other festivals in the south, etc. It was just a timing thing.
Answered
Medium priority
Consumer reaction to gramage changes in small packs.
Asked by Kunal Vora, BNP Paribas
Management confirmed consumer awareness and impact on transactions.
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Question
In your experience, how do consumers react when you add or remove a biscuit or change gramage in a INR 5, INR 10 pack?
Varun Berry, Executive Vice Chairman, MD, and CEO
Yes. The Indian consumer is extremely cost-conscious, and they are absolutely aware of how many biscuits, what gramages go in the various brands.
Answered
Medium priority
Size of small and regional player pool in biscuit market.
Asked by Harit Kapoor, Investec
Management provided specific market share breakdown.
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Question
How large is this pool of small and regional players that you allude to?
Varun Berry, Executive Vice Chairman, MD, and CEO
The big three, like you said, they constitute 70% of the market. Then if I add, let's say, significant regional players, that will be another 10%-12%. Therefore, the long tail is about 15%-18%.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Pricing growth in Q2 was approximately 7%-8% | 7.5% | 4.1% | Overstated vs filing |
| Could have grown 2%-2.5% more without GST disruption | 2.25% | 4.1% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.