Britannia Industries (BRIT IN) – Q2FY27 Result Update – Demand Outlook positive, inflationary pressures a drag – BUY
Published on 06 Nov 2026
We increase our FY28/FY29 EPS estimates by 2.1%/3.9%, driven by 1) healthy demand outlook, with 13% volume growth in 2QFY27, 2) 3.5% price hikes taken in 2Q27 and more likely to offset elevated input costs and support value growth, 3) continued focus on innovation, with new launches gaining traction, 4) recovery in international business despite geopolitical uncertainty and 5) faster growth in MT, Ecom and QC vs GT, with contribution inching up to ~7% of sales. However, sustained RM cost inflation and the ability to maintain momentum in an inflationary environment remains key monitorable. We value BRIT at 45x Sept 28 EPS, revising TP to Rs6,046 (vs. Rs6,579 earlier at 50x FY28E EPS). Retain BUY.
