Britannia shares rise 2% after Q1 results; analysts mixed on margin miss
The stock opened at ₹5,502.50 against the previous close of ₹5,404, with traded volume crossing 10.41 lakh shares by early afternoon.
Shares of Britannia Industries rose 1.96% to ₹5,510 on the NSE following its first-quarter results for FY26-27. The stock opened higher at ₹5,502.50, with a trading volume of 13.43 lakh shares and a total value of ₹750.54 crore. Despite the positive reaction, analysts remain cautious, with most maintaining neutral or underperform ratings.
Only JM Financial upgraded its rating to Buy, citing in-line revenue performance and mid-teen revenue growth. Goldman Sachs and JPMorgan both hold Neutral ratings, with target prices of ₹6,000 and ₹5,900 respectively. Morgan Stanley's target price is ₹5,848, acknowledging improving growth commentary despite a margin miss. Macquarie remains the most bearish, with an Underperform rating and a target price of ₹4,800, attributing the shortfall to higher other expenses.
Britannia reported a 9.5% year-on-year increase in consolidated net sales, reaching ₹4,964 crore, while net profit grew 14.1% to ₹593 crore. Operating profit rose 12.7% to ₹761 crore, although profit margins declined compared to previous quarters. The company's management highlighted positive momentum across key categories and mid-teen revenue growth driven by e-commerce and General Trade strength.
However, input cost pressures from industrial fuel, laminate, and milk remain elevated, though forward covers have helped mitigate the impact. The board announced a final dividend of ₹90.5 per share.
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