Britannia faces persistent cost inflation that delays returns for its investors. The company sells many products at ₹5 and ₹10 price points, where grammage cuts take two months to reach markets. While volumes rose 13% in Q2, further pricing actions are on the cards, which could impact future volume growth.
Pricing pressure
A large part of Britannia’s portfolio sells at ₹5 and ₹10 price points, where grammage cuts take about two months to reach the market. Further pricing actions are on the cards, although additional grammage cuts could weigh on volume growth. Volumes rose 13% in Q2, largely aided by improving rural demand and a recovery in the general trade (GT) channel.
GT growth is now 2.6 times the pace seen in FY26, up from 1.5 times in Q1. Key states, which account for more than 50% of domestic sales, grew at 2.8 times their FY26 pace, while other channels grew at 1.8 times the rate of GT, aided by semi-urban and rural consumption.
Harsha Jethmalani
Harsha Jethmalani is a Deputy Editor at Mint with over a decade of experience covering stock markets and corporate India. As a key member of the Mark to Market team, she specializes in delivering cutting-edge commentary on market trends, the economy, and corporate financial reports.Born and raised in Mumbai, Harsha’s entry into business journalism was a serendipitous pivot. Graduating during the 2008–2009 financial crisis, her initial goal of becoming a research analyst at an MNC was rerouted. However, what began as a chance career move quickly became a conscious choice; she discovered that financial journalism is a powerful storytelling tool capable of influencing and empowering the financial decisions of a massive audience.Harsha began her career in 2009 at IRIS Business Services (Myiris.com), tracking mutual funds and interviewing fund managers. In 2011, she joined the Network18 Group, writing extensively on equity market trends for Moneycontrol.com and hosting pre- and post-market audio updates. Following a stint covering personal finance at Dalal Times, she joined Mint in 2016 as a Content Producer, steadily rising through the ranks to her current editorial position.A defining highlight of her tenure at Mint was her extensive coverage of India's historic Goods and Services Tax (GST) reform. She chronicled the massive indirect tax overhaul from its initial conceptual and execution hurdles to its eventual streamlining. Her impactful reporting earned official recognition when her article exposing a spike in gold smuggling ahead of the GST rollout was formally acknowledged by the Office of the Director General of Audit (Central), Kolkata. Currently, Harsha closely tracks the IT, cement, real estate, and paint sectors. Her sharp news sense and ability to spot emerging trends consistently bring fresh, actionable perspectives to market analysis.She holds a postgraduate degree in financial markets from Indira Gandhi National Open University and a Bachelor of Management Studies from Vivekanand Education Society, Chembur, Mumbai.