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Business Standard
4 days ago
- Business
- Business Standard
Britannia's Q1 results trigger diverging brokerage opinions; stock up 2%
Britannia Q1 results review: Shares of Britannia saw buying, snapping three-day day losing streak. The stock fell nearly 7 per cent in three days of the company announcing its Q1 results. However, at 9:20 AM, Britannia shares were trading 1.97 per cent higher at ₹5501.55 per share on BSE. In comparison, the BSE Sensex was down 0.32 per cent at 80,290.07. Brokerages were divided on Britannia after the fast-moving consumer goods (FMCG) company held its conference call on Wednesday, following its Q1 earnings. The company, known for its biscuit brands Jim Jam and Good Day, reported its Q1 results on Tuesday, August 5, 2025, after market hours and held a conference call on Wednesday, August 6, 2025, during market hours. Britannia earnings call highlights: Management's agenda is to sustain margins while being competitive. Management does not see high volatility in commodity prices from here on. They alluded that gross margins will improve on a sequential basis and expect to sustain or improve Earnings before interest, tax, depreciation, and amortisation (Ebitda) margins, as compared to FY25 levels. In the base quarter, the other operating income was higher, as against current levels; going forward, growth in other operating income will be linear and will not fluctuate any longer. On the capex front, there are no heavy expansions planned, and an increase in production capacity will only be where it is necessary. Management expects capex of ₹100 crore for FY26. Check List of Q1 results today What brokerages suggest on Britannia post Q1? Nuvama Institutional Equities has raised its target price to ₹6,970 per share from ₹6,770 with a 'Buy' rating. The brokerage reckons revenue growth shall accelerate Q2FY26 onwards, while with a stable stock price, the Sales to Average Retailers (SAR) impact shall be negligible for the remaining three quarters, leading to Ebitda growth with normalised staff costs. JM Financial Institutional Securities has also raised its target to ₹6,100 from ₹5,960 with a 'Buy' call. The brokerage suggests any sharp dips should be used as an opportunity to add. It has kept its earnings estimates largely unchanged and will monitor the pace of recovery in volume and gross margin going ahead. Motilal Oswal has maintained a 'Neutral' rating on Britannia with a target of ₹5,850 per share. The company's focus on innovation, distribution expansion, marketing, pricing actions, Route-to-Market (RTM) 2.0, and dairy capacity expansion is expected to drive growth, according to analysts. With key raw material prices softening and competitive intensity remaining stable in the organised space, Britannia's profitability could see a recovery, similar to the previous inflationary cycle, the brokerage note read. Conversely, Macquire has maintained an 'Underperform' rating and has cut the target to ₹4,750 per share from ₹4,850, and CLSA has cut its target to ₹5,906 from ₹5,973, according to data compiled by Bloomberg. Britannia Q1 results recap In Q1, the biscuit makers' consolidated net profit increased 2.9 per cent to ₹520.72 crore, as compared to ₹505.64 crore year-on-year (Y-o-Y). Its revenue from operations stood at ₹4,534.86 crore, as compared to ₹4,129.92 crore a year ago, up 9.8 per cent. Its operating profit, however, declined marginally by 0,7 per cent to ₹675 crore Y-o-Y.
Business Standard
6 days ago
- Business
- Business Standard
Britannia Q1 results preview: Check estimates, date & other key details
Britannia Q1 results preview: Biscuit maker Britannia, known for its products Good Day, Bourbon, Jim Jam, is slated to release its first quarter (Q1FY26) results today, August 5, 2025. Britannia Q1 results 2025: Profit estimates Brokerages tracked by Business Standard estimate Britannia's net profit to increase 10 per cent year-on-year (Y-o-Y) on average, to ₹575.65 crore as compared to ₹522 crore. Sequentially, the net profit is expected to rise around 3 per cent from ₹559.9 crore in Q4FY25. Britannia Q1 results 2025: Revenue expectations The company's revenue for the quarter under review is expected to increase 8.7 per cent in the first quarter (Q1FY26), on average, to ₹4,621.05 crore as compared to ₹4,250.3 crore a year ago. On a quarter-on-quarter (Q-o-Q) basis too, the revenue is poised to increase 4 per cent from ₹4,432.2 crore in Q4FY25. How will Britannia fare in Q1FY26? Brokerages decode Kotak Institutional Equities: The brokerage expects 4 per cent year-on-year (Y-o-Y) growth in biscuit volumes, as compared to 3.5 per cent/6 per cent Y-o-Y in Q4/Q3 and 6 per cent Y-o-Y price-mix impact, which is slightly better than Q4 due to the lagged impact of hikes. This shall result in 10 per cent Y-o-Y growth in standalone revenues, as against 9.2 per cent Y-o-Y revenue growth excluding other operating income in Q4. Besides, other operating revenue is likely to decline 25 per cent Y-o-Y as the base quarter included some prior period grants. Consolidated net operating revenue is expected to grow at 8.9 per cent Y-o-Y to ₹4,628.3 crore, as compared to ₹4,250.3 crore. Consolidated gross margin is anticipated to contract 205 basis points (bps) Y-o-Y to 41.3 per cent, due to raw material inflation in commodities such as wheat, palm, oil, cocoa, and milk; partly offset by price hikes/grammage cuts. Earnings before interest, tax, depreciation, and amortisation (Ebitda) margin is likely to rise 30 bps Y-o-Y to 18 per cent, as gross margin contraction may be offset by lower staff cost and advertising and promotion expenses. Emkay Global Financial Services: The high volume base of Q1FY25 at 8 per cent would limit volume growth to 3-4 per cent in Q1FY26, according to Emkay's analysis. With part of the price hikes landing in the market, price growth is expected to accelerate to 6 per cent. A 240 bps gross margin contraction is forecasted amid inflationary raw prices. Ebitda margin is likely to see an expansion of 20 bps Y-o-Y to 17.7 per cent. This would help support 10 per cent Ebitda growth in Q1FY26 to ₹831.6 crore. Lower borrowings, amid high raw material prices, may help with lower interest costs, thus aiding 11 per cent earnings growth. Motilal Oswal Financial Services: Analysts expect 8.5 per cent revenue growth Y-o-Y to ₹4,583.3 crore in Q1FY26, with volume growth of 3 per cent and the remainder driven by price hikes in Q1FY26. Gross profit margin is expected to contract 260 bps Y-o-Y to 40.8 per cent, while Ebitda margin is expected to contract 43 bps Y-o-Y to 17.3 per cent, primarily due to a rise in agri commodity prices. Consolidated Ebitda is pegged at ₹7,92.9 crore as compared to ₹753.7 crore Y-o-Y. Nuvama Institutional Equities: The brokerage estimates overall revenue to grow 8.8 per cent Y-o-Y in Q1FY26 to ₹4,622.3, as compared to ₹4,250.3 crore. Volumes are likely to increase by 3 per cent Y-o-Y. Ebitda is expected to jump 12.3 per cent Y-o-Y to ₹846.2 crore, as against ₹753.7 crore. Besides, pricing growth is likely to be by 6 per cent in Q1FY26 Y-o-Y. Further improvement is anticipated over the coming quarters. Gross margin shall dip 156 bp Y-o-Y, but improve 88 bps Q-o-Q, due to some benefit of palm oil duty cut and recent price correction, to 40.2 per cent, but Ebitda margin shall expand 57 bps Y-o-Y/14 bp Q-o-Q to 18.3 per cent, due to higher other expenditure.
