Britannia Share Price Jumps Up to 4.7% After Company Reports 23% Rise in Q2 Profit, Should You BUY?

Britannia Industries Ltd shares gained over 2% on Thursday, November 6, after the FMCG major posted a better-than-expected Q2 FY26 performance, due to improved margins and stable commodity costs. The stock opened strong at Rs 6,186, nearly 4.7% higher than its previous close. Britannia shares were trading around Rs 6,029.50, up 2.32% intraday as of 1 PM.

Over the past six months, Britannia shares have gained 11.79%, while the stock is up 25.75%, outperforming the broader FMCG index.With a market capitalisation of Rs 1.45 lakh crore as of November 6, Britannia is currently one of India's leading FMCG giants, with a dominant position in the biscuit segment.

Britannia Q2 FY26 Results

In its September quarter results, Britannia Industries reported a 23.1% year-on-year (YoY) increase in consolidated net profit to Rs 654 crore. The company said that the profit growth led to steady input costs, cost management, and premium product demand in the biscuits and bakery segment.

However, consolidated revenue grew modestly by 3.7% YoY to Rs 4,841 crore. The company cited transitional GST-related issues during Q2 that impacted top-line growth, though profitability remained strong.

On the operational front, Britannia reported a 21.8% YoY rise in consolidated EBITDA to Rs 955 crore. EBITDA margins expanded by a sharp 290 basis points to 19.7%, compared to 16.8% in the same period last year.

Brokerages Maintain Bullish View

In its report dated 16 October, leading broking PL Capital assigned a BUY rating on Britannia Industries, setting a target price of Rs 6,484, implying a potential 10.3% upside from current levels.

The brokerage said that the company stands to benefit from the GST 2.0 reforms, which are expected to boost demand in the biscuit and packaged foods category.

"We believe GST 2.0 will add to other positives and boost demand. Consequently, we have increased our overweight position on Britannia by 90 basis points to 3%. The stock is uniquely placed to gain from GST rate cuts on biscuits," PL Capital stated in its report.

About Britannia Industries

Founded in 1892 in Kolkata, Britannia Industries Limited is among India's oldest and most iconic food companies, known for household biscuit brands like Marie Gold, Good Day, Bourbon, Tiger, and NutriChoice. About 80% of Britannia's revenue comes from biscuits, while the rest comes from breads, cakes, dairy, and snacks. The company became a public limited company in 1918 and was later acquired by the Wadia Group, led by Nusli Wadia, in the early 1990s. During World War II, Britannia supplied biscuits to British soldiers. Today, it operates as a multinational brand with a presence in over 70 countries, offering a wide range of baked and dairy products.

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