Britannia Q3 preview: Revenue set to grow 18%, volume growth pegged at 7%

During Q2, the company had surprised the Street by expanding its operating margins when expectations were of a margin contraction.

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26 Aug, 2025 12:21

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After outperforming its peers and reporting a stellar quarter in the July-September 2022 period, confectioner Britannia Industries is expected to continue its strong run in the October-December quarter as well.

The FMCG major’s consolidated net profit is expected to grow 32 percent year-on-year on the back of an 18 percent rise in revenue. According to an average of estimates by five brokerages polled by Moneycontrol, the Good Day biscuit maker’s revenue is pegged at Rs 4,220 crore and net profit at Rs 492 crore for Q3 FY23.

EBITDA (earnings before interest, taxes, depreciation and amortisation) margins might come in at 16.30 percent, improving over 110 basis points over the same period last year.

One basis point is one-hundredth of a percentage point.

Biscuits to the fore
While FMCG staple companies are dealing with muted rural demand amid inflationary concerns, Britannia’s robust earnings performance is set to come on the back of demand resilience in biscuits vis-à-vis other categories.

Analysts at Nuvama Institutional Equities expect volume growth of 9 percent YoY for the quarter on a base of 5 percent YoY. Meanwhile, HDFC Securities has pegged volume growth at 7 percent. In Q2 FY23, the company had reported 4 percent volume growth on a base of 2 percent.

Also Read: How Britannia managed to trump analysts and its FMCG peers

In Q2, the company had surprised the Street by expanding its operating margins when expectations were of a margin contraction due to high-cost inventory. “As a result of our pricing actions and intensified cost efficiency programme, we have been able to improve our operating margins beyond pre-COVID levels," managing director Varun Berry had said in the earnings press release.

Margin expansion on the cards
This trend is set to continue in Q3 as well, believe analysts. While milk, wheat and sugar prices remain on the boil, correction in palm oil prices and the delayed impact of price hikes will help in margin expansion, as per Kotak Institutional Equities.

While poster boy Hindustan Unilever has said that it is seeing green shoots in the rural market, it will be important to watch Britannia’s commentary on downtrading trends. Investors will also keenly monitor the management’s update on product launches.

The company has recorded aggressive market share gains consistently over the past 38 quarters and saw it hit a 15-year high in the July-September quarter. The Street will be sure to keep an eye on Britannia’s market share commentary in its Q3 results as well.

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