The company says that any adverse developments in monsoon or crop yield could intensify inflationary pressures and impact growth
Highlighting that consumer demand remained subdued for most part of the year due to inflationary pressures and overall economic slowdown, Britannia Industries said that the competitive intensity in both organised and unorganised segments continues to put pressure on pricing and margins, particularly in price-sensitive markets.
In its annual report for FY25, the company highlighted that rural markets began showing signs of recovery, supported by a rise in agricultural income and increased manufacturing activities in some sectors. While demand trends were stabilising, rising costs of key commodities became a major concern.
“High input prices, especially for key commodities like wheat, edible oil, cocoa, etc., remain a significant concern. Any adverse developments in monsoon or crop yield could intensify inflationary pressures and impact growth, especially in rural markets,” the company said in its annual report.
In FY25, the company’s revenue from operations rose to Rs 17,295.92 crore from Rs 16,186.08 crore in FY24 on a standalone basis. The standalone net profit also marked an uptick and increased to Rs 2,130.72 crore in FY25 from Rs 2,082.05 crore in FY24. The standalone operating profit stood at Rs 2,778.98 crore in the recently concluded fiscal year, as compared to Rs 2,799.63 crore in FY24.
Sharing the update on outlook for FY26, the company noted that while urban markets are likely to benefit from premiumisation and rapid expansion of modern and digital trade, continued momentum in rural consumption, supported by a favourable monsoon forecast and government interventions, is expected to aid volume growth.
The company said that the growth prospects for the Indian fast-moving consumer goods (FMCG) Industry in FY 2026 seem attractive on account of favourable demographics, rising disposable incomes, increasing rural consumption and government-led initiatives focused on investment and demand.
The annual report highlighted that strategic investments such as supply chain optimisation and implementation of technology-driven solutions, along with cost efficiency programs, helped the company mitigate rising costs while ensuring product availability across urban and rural markets.
Within the bakery segment, consumer preferences continued to evolve with a clear shift towards more premium and differentiated offerings. Despite the macroeconomic headwinds from geopolitical tensions, input cost inflation and intensified competition, the biscuit segment remained resilient, driven by urbanisation, changing lifestyles and growth of quick commerce channels.
The cake segment has seen the emergence of several regional and local players, leading to increased fragmentation and creation of niche sub-segments. The company added that as large format cakes and premium offerings at higher price points have witnessed significant growth, particularly through non-traditional channels such as modern trade, ecommerce and quick commerce, Britannia has strategically leveraged these platforms to strengthen its presence and drive momentum in the Cake category.
