Britannia Industries shares surge 4% on rising market share in Q4, hopes of rural recovery

Over the past six months, shares of the firm have gained around 6.2 percent.

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26 Aug, 2025 12:21

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Britannia Industries surged over four percent in early trade on May 6, despite the FMCG major's net profit falling more than expected.

Britannia on May 3 reported a consolidated net profit at Rs 536.61 crore for the March quarter, registering a decline of 3.76 percent on-year. A Moneycontrol poll of 10 brokerages had shown that Britannia’s net profit was expected to fall almost three percent  to Rs 542 crore.

The total revenue of the company stood at Rs 4,069.36 crore, rising 1.14 percent from Rs 4,023.18 crore in the year-ago quarter. The brokerages estimated the topline would see growth of around 2.4 percent YoY.

At 9.20 am, Britannia Industries shares were quoting Rs 4,915.35 on the NSE, higher by 3.6 percent compared to the previous session's closing price.

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The company's board has recommended a final dividend of Rs 73.5 per share for the financial year ended March 31, 2024.

For the quarter ended March, Britannia's market share saw some revival, as a result of the pricing action taken to remain competitive and higher investments in brands supported by distribution expansion.

Britannia Industries' e-commerce and modern trade segments registered double-digit growth. The firm's focus states surpassed other regions in terms of growth, even when faced with muted rural demand.

Nuvama Institutional Equities said, "Rural demand which has been a
laggard for FMCG industry is expected to revive in FY25 on the onset
of likely strong monsoon. We expect Britannia to be a beneficiary of
this revival. Further, a good wheat crop output will aid margins."

The company said it will remain vigilant of commodity prices and evolving
geopolitical landscape. Additionally, the MarieGold maker's cost efficiency program continues to yield operational saving of around two percent in revenue, which has ensured healthy operating margins.

Britannia Industries noted that it plans on remaining competitive in prices, with a goal of driving market share while sustaining profits.

CLSA retained its outperform call, with a target price of Rs 5,636 per share. This indicated an upside of more than 18 percent from the previous session's closing price.

Over the past six months, shares of the firm have gained around 6.2 percent. In comparison, the Nifty 50 index has recorded gains of around 16 percent during the same time period.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.