Britannia flags fuel inflation, GST pricing disruption in Q4

BENGALURU: Britannia Industries said higher fuel and freight costs arising from the West Asia conflict, along with disruption in wholesale channels following GST-linked pricing changes in the biscuit market, weighed on growth during the March quarter, prompting the company to initiate calibrated price hikes and cost-control measures.The maker of Good Day and Marie Gold biscuits reported consolidated profit for the period of Rs 679.7 crore for the quarter ended March 31, up 21.6% from Rs 559.1 crore a year earlier. Total income rose 6.2% to Rs 4,774.4 crore from Rs 4,495.2 crore. For FY26, total income increased 6.6% to Rs 19,375.6 crore, while profit for the period rose 16.5% to Rs 2,537 crore.On the analyst call, managing director and chief executive Rakshit Hargave said Britannia’s domestic business was growing at about 9-9.5% before moderation in March, when the company faced disruption in international operations linked to the West Asia conflict.Britannia said its international business was affected by vessel unavailability and slowing demand in the region, while fuel costs and ocean freight rates also rose sharply after disruption around the Strait of Hormuz.The company manufactures a significant portion of products for international markets in Oman and Dubai. Hargave said Britannia had begun shifting part of its export-oriented production back to its Mundra facility to reduce dependence on West Asian shipping routes and expects the transition to be fully operational by mid-May.Britannia added that while wheat prices remained favourable, fuel and laminate costs had turned inflationary. The company said it would undertake calibrated price increases and grammage adjustments from the current quarter to offset rising input costs.Management also pointed to temporary disruption in wholesale and rural channels after some biscuit makers moved to interim Rs 4.5 and Rs 9 price points following the GST rate reduction, while Britannia retained the Rs 5 and Rs 10 packs that account for a large part of industry sales.“Close to 60-65% of the biscuits that we sell are at the Rs 5 and Rs 10 price point,” Hargave said, adding that the resulting “dual pricing” led to uneven trade margins and slower transactions in wholesale channels. The company said it expects those channels to stabilise during the current quarter.Britannia said volume growth during the quarter was about 5.5%, while modern trade and ecommerce channels continued to grow in double digits. Quick commerce now contributes nearly 70% of the company’s ecommerce business, with premium and impulse-led categories such as croissants, wafers and indulgence snacks seeing stronger traction online.Ecommerce contributed 6% of its domestic business in FY26, up from 4% in FY25.