War impact: Britannia initiates price hikes

Rakshit Hargave, Managing Director & Chief Executive Officer, Britannia said the company has taken steps to mitigate any potential implication on the business, including input cost inflation, arising out of the ongoing West Asia conflict, and remain watchful of the evolving developments.

Listen to this article

The company is initiating calibrated price increases from first quarter of 2027, as per its investor presentation.

Other mitigation measures include optimizing sourcing between India and International manufacturing facilities for key geographies to mitigate supply-related challenges. This expected to be fully operational by mid-May, Britannia said.

The company said it is also accelerating cost optimization and efficiency initiatives across the business.

Due to the West Asia conflict, Britannia said its International Business revenues and profitability were impacted during fourth quarter of 2026 owing to vessel unavailability, slowdown in demand.

There was significant increase in fuel costs, ocean freight rates, it said.

No material disruption to production operations at our India manufacturing facilities on account of industrial fuel supply constraints, the company noted.

“The business witnessed a steady start to the quarter, with growth of 9 per cent in the first two months, before moderating to a lower number in March, primarily on account of supply disruptions in the International Business following the West Asia conflict,” Hargave said.

Over the year, we made significant strides in scaling our presence in the rapidly growing e-commerce channel, now contributing 6 per cent to the domestic business, driven by e-commerce-first launches and a premium mix of offerings. Adjacent categories, including Croissant and Wafers, continued their strong momentum, while flagship brands such as Little Hearts and Jim Jam recorded robust double-digit growth, the company said.

Britannia’s fourth quarter  consolidated net profit increased 21.6 per cent to Rs 680 crore when compared to same period last year, while sales grew 7.1 per cent to Rs 4,686 crore.

For FY 2026, the net profit grew 16.5 per cent to Rs 2,537 crore, while sales increased 7.5 per cent to Rs 18,858 crore.

The company has declared a final dividend of Rs 90.5 a share.

Latest

A biography on SNN Sankaralinga Iyer

The biography was authored by veteran journalist K Balakumar....

Activity Galore

Godrej Properties bought 47 acres off OMR for a...

When Numbers Tell A Tale…

 Ask the mandarins at TAFE (Trac­tors and Farm Equipment...

Managing Power

With mercury rising, Tamil Nadu’s power demand is hitting...

Newsletter

Don't miss

A biography on SNN Sankaralinga Iyer

The biography was authored by veteran journalist K Balakumar....

Activity Galore

Godrej Properties bought 47 acres off OMR for a...

When Numbers Tell A Tale…

 Ask the mandarins at TAFE (Trac­tors and Farm Equipment...

Managing Power

With mercury rising, Tamil Nadu’s power demand is hitting...

Minister Keerthana Chairs Budget Consultation Meeting

Detailed discussions were held on the Department's ongoing development...

A biography on SNN Sankaralinga Iyer

The biography was authored by veteran journalist K Balakumar. The Tamil translation of the book was also released simultaneously. The Tamil translation was done...

Activity Galore

Godrej Properties bought 47 acres off OMR for a plotted residential project, while Arihant Foundation and Housing acquired a prime Anna Salai site, adjacent...

When Numbers Tell A Tale…

 Ask the mandarins at TAFE (Trac­tors and Farm Equipment Ltd.). They will unhesitatingly vouch for it. Indeed, the flagship company of the Chennai-based Amalgama­tion...