LIC's holding in Britannia Industries declined significantly from 1.25 crore shares in December to 1.07 crore shares in March, resulting in share sales worth ₹1,030 crore. The insurer's stock price also declined 10.08% during this period, reflecting broader market sentiment toward the company. This stake reduction comes as Britannia implements strategic pricing adjustments across its product portfolio.
Britannia Industries is implementing price increases of ₹10 on Good Day biscuit family packs across key variants, according to distributor sources. The Pista Badam 526g pack will be priced at ₹140, the Butter family pack at ₹120, and the Cashew family pack at ₹130. As reported by industry sources, the hikes are being driven by rising commodity and packaging costs, with lower-priced packs of ₹5 and ₹10 MRP likely to be spared outright price increases.
The pricing strategy affects a significant portion of Britannia's business, as biscuits account for 70-75% of the company's revenue. According to company data, Good Day alone contributes approximately ₹3,500 crore — roughly 25% of biscuit revenue. The segment also underpins 18-20% EBITDA margins for the company, making it a critical revenue driver despite the recent market challenges.
The pricing moves come alongside mixed fourth-quarter results, with Britannia reporting consolidated revenue up 6.5% YoY at ₹4,719 crore and EBITDA rising 5.9% to ₹853 crore. As reported by the company, EBITDA margin came in at 18.1%, down 9 basis points YoY and 165 basis points sequentially, as other expenses climbed 17.5% YoY on higher advertising spend. Net profit beat expectations, rising 21.1% YoY to ₹678 crore.
Business growth ran at around 9% through January and February before easing in March, weighed down by supply disruptions linked to the West Asia conflict, which also pushed up ocean freight and fuel costs. According to company data, e-commerce contributed around 6% to domestic revenues, with quick commerce accounting for nearly 70% of that. Digital-first brands continued to outpace the core biscuits portfolio, growing at 2.7 times its pace.
Axis Securities maintained its BUY rating on the stock but trimmed its target price to ₹6,360 from ₹7,170, cutting FY27 and FY28 EBITDA estimates by 10% and 15% respectively, citing cost pressures and geopolitical headwinds. The company declared a final dividend of ₹90.5 per share.
