Britannia Industries Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 5,597.79 Cr (+15.64% YoY) and PAT growth of +10.83% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 5,597.79 Cr (+15.64% YoY) |
| PAT (Q2) | Rs. 725.99 Cr (+10.83% YoY) |
| EBITDA margin | 18.25% (-147 bps YoY) |
| EPS (Q2) | Rs. 29.93 (+10.16% YoY) |
Britannia delivered 15.64% YoY revenue growth with a 145 bps QoQ margin recovery to 18.25%, but EBITDA growth of 7.03% trailed sales, leaving the FY27 operating-profit-ahead-of-sales commitment behind track and requiring ~19.4-19.5% H2 margins. Input inflation (materials at 57.83% of revenue) remains the key pressure point, with the 24 Sep palm duty cut as a back-loaded offset. Earnings quality is clean with nil exceptional items, stable ~25.7% tax rate, and 836.65 crore of H1 free cash flow.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue — "in line to modestly ahead on the low base, with rural the swing factor" | In line to modestly ahead | rev_yoy_pct = +15.64% — ahead | Played out |
| Margins — "the Q1 exit pattern… extending rather than reversing" (YoY compression) | Compression | ebitda_margin 18.25% vs 19.72% YoY (−147 bps), but +145 bps QoQ vs Q1's 16.80% | Played out YoY; Partially QoQ |
| FY27 op-profit ahead of sales — "at risk for the quarter itself" | At risk in Q2 | EBITDA +7.03% < sales +15.64% | Played out |
| Q2 pricing +1.5–2% — "testable against the print" | Testable | No volume/price split in filing | Not observable |
| International "the hardest guidance to hold" | At risk | Single segment — no split — remains open for the call | Not observable |
| H2 palm duty-cut/inventory run-off recovery ("the shape of the H2 margin recovery") | H2 relief | Inventories of 2,322.67 carried at Sep-26; no H2 disclosure — remains open for the call | Not addressed in the filing |
Read our full results preview.
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 operating profit growth ahead of sales growth | Q1 FY27 earnings call (7 Aug 2026) | P&L-derived EBITDA +7.03% vs revenue +15.64% in Q2; H1: +8.77% vs +11.99% — trailing in both quarters; H2 must carry it | Stretch |
| Q2 FY27 margins "potentially weaker" than Q1 | Q1 FY27 earnings call | EBITDA margin 18.25% vs 16.80% — improved +145 bps QoQ (still −147 bps YoY) | Weaker-margin warning did not materialize QoQ |
| EBITDA margin within a target band despite inflation | Q4 FY26 earnings call (8 May 2026) | 18.25% (Q2) vs 19.72% year-ago; H1 17.57% vs 18.09% — modest compression, within recent band | On Track |
| Q2 FY27 margins "potentially weaker" than Q1 | Q1 FY27 earnings call | Margin improved +145 bps QoQ to 18.25% (YoY still −147 bps) — favourably) on QoQ; partially validated YoY | Contradicted |
| FY27 op-profit to grow ahead of sales | Q1 FY27 earnings call | Q2 EBITDA +7.03% < sales +15.64%; H1 +8.77% < +11.99% | Contradicted for the quarter |
| Mid-teens exit growth reflects "genuine demand buildup" | Q1 FY27 earnings call | Q2 revenue +15.64% YoY on a transition-depressed base — base-aided | Confirmed in direction |
| Brand investment to continue "vigorously" | Q4 FY26 earnings call | Other expenses +13.00% YoY — grew slower than revenue (+15.64%) this quarter — investment intensity moderated | Contradicted in the quarter |
| Metric | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|
| Volume growth | ~5.5% (grammage) | ~9% (total tonnage) | Not disclosed in filing |
| Pricing contribution | — | ~1% | Not disclosed |
| EBITDA margin (my basis) | — | 16.80% | 18.25% |
| PAT margin (owners/revenue) | 14.5% (company-published) | 11.87% | 13.15% (720.97/5,597.79) |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.