Britannia Industries Ltd Management Discussions

I. INDUSTRY STRUCTURE AND DEVETOPMENTS

The Indian packaged food industry witnessed a gradual recovery in FY 2025-26 following subdued demand environment in FY 2023-24 & FY 2024-25. Consumer sentiment improved during the year, supported by stable macroeconomic conditions, reduction in Goods and Services Tax (‘GST) rates and a sustained recovery in rural consumption. Further, increased agricultural output and continued policy support contributed to higher rural disposable incomes, leading to demand revival across categories.

While FY 2025-26 faced headwinds from geopolitical tensions in the Middle East and persistent commodity inflation, a key development during the year was the rationalisation of the GST structure for packaged food categories. The reduction in GST rates enhanced affordability, particularly in mass consumption segments and acted as an important catalyst for demand recovery across price-sensitive categories.

Urban demand remained resilient, with consumption patterns reflecting premiumisation and a growing preference for convenience-led products, while rural markets benefited from higher purchasing power. As a result, the demand environment reflected a balanced recovery across both urban and rural geographies, with improving consumption visibility towards the latter half of the financial year.

These trends also influenced pricing strategies, portfolio interventions, distribution focus and channel engagement across the industry as outlined below:

• Input Costs and Margin Dynamics

The industry operated against a challenging macroeconomic backdrop, characterised by persistently elevated input costs with prices of key commodities such as wheat, sugar, edible oils & dairy products continuing to rise.

In response, companies intensified efforts to enhance supply chain productivity while calibrated price adjustments and uptick in Revenues due to GST rationalisation, supported margin improvement.

• Consumer Trends and Portfolio Evolution

Consumer trends continued to evolve during the year, reflecting preferences for both premium and value-led offerings. While urban consumers continued to gravitate towards indulgent, differentiated and convenience-oriented offerings, affordability and small pack offerings remained an important purchase driver across value conscious rural and semi-urban markets. At the same time, health, wellness and ingredient transparency continued to influence purchasing decisions, encouraging companies to strengthen and diversify their product portfolios.

• Rural Markets and Distribution Expansion

Rural markets continued the growth trajectory with improved farm incomes, favourable agricultural output and higher disposable incomes supporting consumption across categories. The increased propensity to spend on branded packaged food further expanded category penetration in these markets.

To capitalise this opportunity, companies continued to expand distribution reach, improve market coverage and enhance product availability through a mix of direct and indirect distribution models. Affordable pack formats also played a critical role in driving household penetration and higher offtakes.

• Channel Evolution and Digital Transformation

The channel mix continued to evolve during the year, with Modern Trade and E-commerce channels growing at a much faster pace than Traditional Trade. Increased digital adoption among consumers and a growing base of shoppers seeking convenience contributed to the expansion of online grocery and Quick commerce platforms across packaged food categories.

In response to this, companies strengthened their omnichannel presence through targeted investments in digital capabilities, E-commerce partnerships and data analytics. The deployment of advanced analytics and Artificial Intelligence (AI) driven tools enabled sharper consumer targeting, improved campaign effectiveness and facilitated the introduction of channel-specific offerings. These initiatives enhanced brand visibility, improved consumer engagement and supported demand generation across emerging platforms.

The Company operates in a single segment i.e., ‘Foods. Accordingly the performance is reported at an overall Company level as one segment. An overview of the performance and outlook of the Companys key Product categories covering Industry Structure and Development, Business Strategies, Opportunities and Threats are given herein below:

(A) BAKERY BUSINESS

Biscuit

The Indian biscuit industry is among the largest and most widely penetrated segments within the packaged food category, comprising large national brands, strong regional players and a sizeable unorganised presence across local markets. The category caters to a wide spectrum of consumer needs, ranging from affordable everyday consumption to premium, indulgent and differentiated formats.

A key development during FY 2025-26 was the rationalisation of GST rates, which improved affordability and reduced the pricing disparity within the food category space as well as between organised & unorganised players. This change enhanced competitiveness of branded offerings in price-sensitive segments and supported ongoing formalisation of the category, particularly across rural and semi-urban markets.

Competition remained intense during the year, with regional and local players continuing to strengthen their presence in value-focused segments. At the same time, premium and differentiated offerings gained traction among urban consumers, reflecting evolving consumption preferences. The growing relevance of Modern Trade, E-commerce and Quick commerce channels further influenced assortment strategies and created greater opportunities for premiumisation within the category.

Cake

During the year, the Cake category continued its growth trajectory, delivering healthy growths across both urban and rural markets. The categorys increasing relevance across everyday as well as occasion-led consumption contributed to rising household penetration and sustained demand growth. Consumer preferences also continued to evolve, with a gradual shift from traditional slice cakes towards more indulgent and differentiated formats such as donuts and brownies, reflecting changing snacking habits and consumption preferences.

The competitive landscape continued to evolve during the year, with regional and local players expanding their presence across markets and niche offerings gaining traction among specific group of consumers. In addition, the rise of E-commerce-led D2C (Direct-to-Consumers) brands, particularly those focused on better-for-you propositions is reshaping the competitive dynamics.

The category also witnessed a structural shift towards organised retail channels, including Modern Trade, E-commerce and Quick commerce, driven by increasing consumer preference for convenience, wider product availability and faster access to differentiated offerings. These channels are playing an increasingly important role in product discovery, premiumisation and category expansion, particularly among the younger consumers.

Rusk

The Rusk category continues to remain highly fragmented, with a significant presence of regional and local players across markets. The category is characterised by limited product differentiation and intense competition, resulting in a relatively commoditised market structure, where pricing remains a key competitive differentiator.

At the same time, increasing consumer preference for trusted brands, consistent product quality and wider product availability is supporting the gradual shift towards organised players. The growing relevance of Modern Trade and E-commerce channels is further enhancing category visibility and accessibility, while creating opportunities for innovation and portfolio differentiation. These trends are expected to support category development in the long run.

Bread

Bread is a staple food across a large consumer base, supported by rising household penetration and increasing breakfast consumption. Consumer preferences are gradually evolving towards products that offer enhanced nutrition, convenience and longer shelf life, driving demand for healthier bread variants across markets.

The category is also witnessing growing interest in differentiated segments such as sourdough, artisanal, protein-rich and high-fibre breads, with both emerging and established players contributing to category innovation. Increasing consumer focus on clean-label products, nutritional benefits and premium offerings is further supporting the development of this category, particularly in the urban markets.

While General Trade remains an important channel for the category, Quick commerce is emerging as a significant growth driver, supported by increasing consumer preference for convenient and faster availability of products. The growing relevance of digital channels is also enhancing the visibility and accessibility of premium and differentiated bread offerings, particularly in metropolitan markets.

(B) DAIRY BUSINESS

The Indian Dairy Industry continued its strong growth trajectory during FY 2025-26 and is expected to expand at a CAGR (Compound Annual Growth Rate) of 11-12% over the next decade. This growth is driven by rising disposable incomes, rapid urbanisation and increasing penetration of organised retail and digital distribution channels. The category also benefited from robust milk production levels and government-led cooperative initiatives, providing a strong foundation for sustained growth. The growing adoption of E-commerce and Quick commerce platforms has further enhanced consumer access to dairy products, particularly across Tier 2 and Tier 3 markets.

A key structural shift underway within the industry is the growing consumer preference towards value-added dairy products such as cheese, yogurt, paneer and dairy-based beverages. These categories are witnessing a stronger momentum than traditional liquid milk driven by product innovation, premiumisation and expanding consumption occasions. As a result, organised players are increasingly focusing on value-added portfolios that offer greater differentiation and enhanced value creation.

Rising health and nutrition awareness among consumers is further shaping demand patterns within the industry. Consumers are actively seeking high-protein, fortified, probiotic and functional dairy offerings and their increasing preference for clean-label, premium and trusted products is encouraging greater adoption of branded dairy products. At the same time, evolving lifestyles are supporting on-the-go and ready-to-consume formats, creating new opportunities across dairy categories.

(C) ADJACENT BUSINESS

Wafer

The category witnessed healthy growth during FY 2025-26, supported by evolving snacking preferences and increasing consumer inclination towards indulgent and convenient snack formats. With national penetration levels remaining relatively low, the category continues to offer significant headroom for future growth and expansion across markets.

The category remains fragmented, with the presence of numerous regional and local players, while also witnessing increasing participation from organised and international brands. As consumer preferences continue to evolve towards differentiated and premium snacking experiences, segments such as wafer rolls and other value-added formats are gaining traction.

The growing relevance of E-commerce and Quick commerce platforms is enhancing product visibility, enabling impulse purchases and contributing to greater category accessibility.

Croissant

The category witnessed robust growth during the year, although on a relatively small base, reflecting increasing consumer interest in differentiated bakery and indulgent snacking formats. Growing urbanisation, evolving consumption habits and rising preference for convenient ready-to-eat products are supporting the development of the category across markets.

The packaged Croissant segment remains at an early stage of evolution, with participation currently limited to a few organised players. As consumer awareness continues to improve and category visibility increases, the packaged form of Croissant is expected to witness broader adoption, creating significant opportunities for category expansion and premiumisation.

The category is also benefiting from increasing experimentation with global bakery formats and changing consumer preferences for convenient, on-the-go snacking options. Ongoing investments in product innovation, awareness building and distribution expansion are expected to support market development and accelerate category growth in the long run.

(D) INTERNATIONAL BUSINESS

Over the years, your Companys International Business has expanded its presence across more than 80 Countries, operating largely through a national distributor-led model across markets. The business spans key regions including the Middle East, Americas, Africa, Europe and Asia Pacific, each characterised by distinct channel structures such as ethnic stores, Modern Trade and General Trade.

The competitive landscape across these markets comprises a mix of large international brands and strong local players, resulting in diverse consumption and channel dynamics. Consumer preferences across International Markets continue to evolve, reflecting a combination of value-seeking, convenience and premiumisation trends. While larger family packs remain popular due to their perceived value proposition, consumers are also increasingly gravitating towards premium snacking formats, differentiated flavours and innovative product experiences. In parallel, growing demand for convenient, on-the-go consumption is supporting the adoption of smaller pack formats across channels such as convenience stores and travel retail outlets.

As Global consumption trends are increasingly driven by health and wellness, consumers are seeking better-for-you offerings such as no sugar, high-protein, gluten-free and clean-label products. At the same time, digital influence and discovery-led consumption are accelerating product visibility and encouraging consumers to explore new products, flavours and formats across markets.

Further, geopolitical tensions, especially in the Middle East caused temporary supply chain disruptions and logistics challenges, impacting revenue growths and profitability. While companies mitigated the impact through utilisation of available raw & packing materials and alternate logistics arrangements, higher freight and shipping costs had an adverse impact on profitability.

II. BUSINESS STRATEGY

(A) BAKERY BUSINESS

Biscuit

In line with the evolving industry structure, Britannias strategy is centred on strengthening its presence across both value-driven and premium segments through a balanced approach encompassing distribution expansion, portfolio innovation, premiumisation and health-led product development.

Rural markets are a key growth driver, supported by improved farm incomes and stable consumption sentiment. Demand remains highly price-sensitive, with Rs. 5/- and Rs. 10/- price points continuing to dominate volumes. Companies including Britannia focus on scaling up Rural Preferred Dealers and small value pack strategies to drive penetration and volume growth.

With rural markets driving volume recovery and consumption remaining highly price-sensitive, your Companys focus is on expanding reach through Rural Preferred Dealers, strengthening last-mile distribution and enhancing product availability across key consumption areas. Supported by calibrated pack-price interventions and value-led formats, Britannia intends to improve accessibility and deliver enhanced consumer value across rural markets.

In urban markets, where premiumisation trends continued to gain momentum, Britannias focus is to accelerate its indulgent and differentiated offerings. During the year, your Company expanded its premium indulgence portfolio with the launch of ‘Pure Magic Choco Tarts in Milk Choco and Hazelnut variants and also strengthened its snacking portfolio with the launch of ‘50 50 Cheeze Dipped and 50 50 Caramel Dipped Crackers to cater to evolving consumer preferences for indulgence and quality-led snacking experiences.

Recognising the growing consumer focus on nutrition and better-for-you choices, Britannia intends to strengthen its Health & Wellness portfolio through targeted innovations. Key launches during the year included ‘MilkBikis SMART, Indias 1st DHA Enriched Biscuit with 16 micronutrients, ‘NutriChoice 100% Millets Cookies made from Jowar, Foxtail and Ragi with no added sugar and no palm oil, and ‘Doodh Marie Gold, offering the goodness of Atta and Milk in a wholesome everyday format.

Your Company also strengthened its route-to-market approach by leveraging the growing relevance of Modern Trade, E-commerce and Quick commerce platforms, particularly for premium and impulse-led purchases, while continuing to maintain a strong presence in traditional trade for mass and rural consumption.

Amidst an intensely competitive landscape with active regional participation, Britannia will continue to invest in brand building, innovation and supply chain efficiencies to reinforce its leadership position and drive sustainable growth across the Biscuit Category.

Cake

In line with evolving consumer preferences and category trends, Britannias strategy in the Cake category focuses on driving growth through a balanced approach of accessibility, premiumisation and portfolio expansion, supported by continued investments in brand building and channel development.

To strengthen accessibility and expand category penetration, your Company introduced value-led innovations at affordable price points. During the year, Britannia launched ‘Fudge !t Choco Brownies at an accessible price point of Rs. 20/-, offering a rich and indulgent chocolate experience while broadening consumer access to premium-inspired formats. Your Company also expanded its Layerz Cake portfolio through the introduction of Orange and Butterscotch variants, catering to evolving consumer tastes and preferences beyond the existing chocolate offerings. The introduction of Veg ‘Fudge !t Choco Brownies and ‘Veg Plum Cake further strengthened your Companys premium and festive portfolio, catering to consumers seeking vegetarian indulgent options.

Alongside portfolio innovation, your Company continues to invest in strengthening its brand through differentiated consumer campaigns and sustained digital engagement while strengthening presence in organised trade channels such as Modern Trade, E-commerce, and Quick commerce through enhanced visibility and targeted consumer promotions.

Through this balanced focus on accessibility, innovation and brand building, Britannia will continue to strengthen its position in the category and drive sustainable growth across markets.

Rusk

Britannias strategy remains focused on strengthening its position through enhanced market reach, differentiated offerings and sustained brand investments. Your Company continues to drive category consumption through competitive promotions, while reinforcing its presence across key markets and traditional strongholds.

During the year, your Company leveraged channel opportunities by introducing better value packs in higher grammage segments, enabling improved value perception and driving volume growth. Your Company also continued to focus on delivering superior product quality and differentiated offerings while expanding availability across geographies to achieve growth in a highly competitive and fragmented market.

Portfolio strengthening remains a key strategic priority along with expansion in the reach of differentiated variants such as Milk Rusk, Butter Rusk and Cake Rusk beside the core Premium Bake Rusk portfolio. These offerings are supported by targeted distribution expansion, brand building initiatives including region-specific print and digital media campaigns.

Further, seasonal and contextual activations, including campaigns linked to tea-consumption occasions, helped reinforce brand affinity and deepen consumer connect across key markets.

Through continued focus on value, portfolio differentiation and brand building, Britannia will continue to strengthen its position in the category and drive sustainable growth across markets.

Bread

Britannias strategy in the Bread category remains focused on strengthening its presence in the fast-growing health and wellness segment while enhancing visibility across emerging trade channels.

During FY 2025-26, your Company strengthened its health-oriented portfolio through product enhancements, portfolio expansion and improved availability across channels. These initiatives were aligned with increasing consumer demand for healthier, nutrition-focused and value-added bread offerings, enabling Britannia to address evolving consumption preferences and strengthen its relevance within the category.

Recognising the growing importance of Quick commerce in shaping purchase behaviour, Britannia invested in targeted platform partnerships and category-led initiatives to enhance product visibility, improve consumer discoverability and drive conversion across key platforms, thereby reinforcing its competitiveness in an increasingly digital retail environment.

(B) DAIRY BUSINESS

Your Companys strategy in the Dairy Business remains focused on strengthening its value-added portfolio, leveraging its integrated dairy infrastructure and expanding consumer reach across channels, while maintaining a strong focus on quality, operational efficiency and sustainable sourcing.

• Strengthening the Core and Expanding the Portfolio:

Britannias state-of-the-art dairy facility at Ranjangaon, Maharashtra, with a milk processing capacity of 5 lakh litres per day, continues to support the Companys multi-category dairy strategy. The facility manufactures a diverse range of dairy products including Cheese, Flavoured Milk, Skimmed Milk Powder, Butter, Ghee, Dairy Whitener, Greek Yogurt and Curd. During the year, your Company focused on improving capacity utilisation across all its manufacturing lines to support portfolio expansion and cater to growing market demand for value-added dairy categories.

Britannia continues to strengthen its portfolio through targeted innovations in line with the increasing consumer preference for nutrition-focused and differentiated dairy products. During the year, the offerings under ‘Britannia The Laughing Cow brand were expanded with the launch ‘Britannia The Laughing Cow Daily Cheese Slices made from 100% cow milk, bringing an authentic cheese experience to a wider consumer base. Britannia also entered in the high-protein segment with the launch of ‘Come Alive Greek Yogurt in Classic, Blueberry and Strawberry variants, catering to the growing demand for nutritious dairy offerings.

• Strengthening Milk Procurement and Backward Integration:

During FY 2025-26, your Company procured over 60,000 litres of milk per day through a strong network of over 2,500 farmers. Britannia continues to invest in backward integration initiatives centred around breeding, feeding and livestock management. Farmer training programmes, animal health camps, deworming drives, cattle feed distribution and various other initiatives were undertaken during the year to enhance milk quality, improve yield and strengthen farmer livelihoods.

• Building Competitive Advantage Through Channel Strategy:

Your Companys focus is on strengthening availability across retail outlets and driving localised demand generation in key markets. In Modern Trade and E-commerce channels, investments are directed towards enhancing competitiveness and visibility through effective communication and platform-led interventions. This balanced channel approach enables your Company to improve shelf presence, drive discoverability and support growth across both core and premium dairy offerings.

Through its integrated approach encompassing infrastructure, portfolio innovation, sourcing excellence and channel expansion, Britannia intends to strengthen its presence and accelerate business growth.

(C) ADJACENT BUSINESS

Wafer

Britannias strategy in the Wafer category remains focused on strengthening its presence in priority markets, expanding participation in high-growth formats and deepening consumer engagement.

Recognising the increasing popularity of wafer rolls and consumers preference for differentiated snacking experiences, Britannia strengthened its presence in the segment by reimagining its iconic Bourbon brand in an elegant, rolled wafer format with a rich chocolate filling as ‘Bourbon Rolls. The launch enabled your Company to participate in a fast-growing format while delivering the much-loved Bourbon experience in a contemporary and refreshed format.

Further, during the year, Britannia executed a hrst-of-its-kind collaboration with Naruto, a globally recognised anime character with strong resonance among Gen Z consumers. The initiative was amplified through QR-enabled on-pack activations, television campaigns and in-store visibility programmes, helping enhance brand engagement and deepen consumer connect across markets.

Through focused market expansion, participation in emerging formats and continued brand building efforts, Britannia intends to strengthen its position in the Wafer category.

Croissant

Britannias strategy in this category is centred on innovation, category development and consumer engagement. Your Company continues to invest in product innovation and premium positioning to enhance the appeal of the category among consumers seeking differentiated bakery and snacking experiences. These efforts are complemented by competitive pricing interventions aimed at improving accessibility and supporting category expansion across markets.

During the year, your Company undertook high-impact consumer engagement initiatives, with a strong focus on digital-first communication and younger consumer cohorts, particularly Gen Z. These campaigns played an important role in enhancing category awareness, strengthening brand affinity and driving consumer trial, while also earning multiple recognitions across digital and retail marketing platforms.

Through sustained investment in product innovation, category creation and consumer engagement, your Company intends to strengthen its leadership position and drive development of the packaged Croissant category in India.

(D) INTERNATIONAL BUSINESS

Britannias International Business strategy remains focused on strengthening brand equity, enhancing local relevance, expanding market presence and improving profitability across geographies through calibrated portfolio, strong distribution network and operational efficiencies.

• Strengthening Brand Equity and Consumer Affinity:

Your Company continues to invest in brand- building, visibility and promotional initiatives to strengthen product affinity among the Indian diaspora while enhancing competitiveness against global and local players. Focused marketing campaigns and in-market activations helped reinforce Britannias Brand relevance and consumer connect across regions.

• Expanding portfolio through Innovation:

Britannia expanded its portfolio through the launch of innovative products to meet evolving consumer preferences and growing demand for differentiated snacking experiences. Key introductions include ‘Britannia Chompers Mini Chocochip Cookies, ‘Britannia Chompers Mini Rainbow Cookies, ‘Britannia Milk Bikis Minis Wafflez, ‘Britannia MilkBikis Minis Kreemz, ‘Britannia Pure Magic Italian Custard Creme Filled Choco Biscuit and ‘Britannia Pure Magic Peanut Creme Filled Choco Biscuit. These launches reflect the Companys continued focus on delivering differentiated product experiences, driving premiumisation and expanding consumer choice.

• Strengthening Distribution and Channel

Presence:

Your Company continues to customise its distribution approach across Middle East North Africa (‘MENA), Americas and Asia Pacific markets to address evolving business and consumer needs. Increased focus is placed on mainstream retail and E-commerce platforms, alongside entry into white-space markets to capture untapped demand and accelerate growth in high-potential markets.

• Expanding Operations and Driving Profitability:

Britannia continues to evaluate opportunities to expand its operations in emerging markets through contract manufacturing, partnerships and other strategic avenues. At the same time, the business continues to focus on calibrated pricing actions and multiple cost-efficiency initiatives, including automation, recipe and packaging optimisation, logistics efficiencies and sourcing optimisation, to improve profitability and enhance operational efficiencies.

III. OPPORTUNITIES AND THREATS

(A) BAKERY BUSINESS

Biscuit

The Biscuit category continues to offer significant growth opportunities driven by favourable demographics, increasing urbanisation, nuclear households and on-the-go lifestyles that reinforce demand for convenient-led and ready-to-eat products across occasions. Premiumisation across urban markets, growing rural penetration and increasing consumer preference for differentiated offerings provide avenues for both volume and value growth. In addition, rising awareness of health and wellness is creating opportunities for innovation across nutrition-led, fortified and better-for-you product segments. The continued expansion of Modern Trade, E-commerce and Quick commerce platforms is also creating new avenues for consumer engagement, premiumisation and portfolio expansion.

However, the category remains exposed to volatility in key commodity prices such as wheat, sugar, edible oils, crude oil & gas etc., due to climatic conditions and global supply factors & geopolitical conflicts, which impacts both growths and profitability Further, competition from regional and unorganised players, especially in value segment, continues to exert pressure on market share and pricing. Evolving consumer preference towards healthier alternatives may also affect demand for traditional offerings, necessitating continuous portfolio innovation and renovation.

Cake

The Cake category offers strong growth potential driven by increasing household penetration, continuous product innovation and premiumisation across differentiated formats such as Donuts and Brownies. Product innovation, expanding consumption occasions and growing consumer preference for indulgent and convenience-led offerings provide avenues for both volume and value growth. The increasing relevance of Modern Trade, E-commerce and Quick commerce channels further support category visibility and expansion.

However, the category remains highly fragmented due to low entry barriers and the presence of regional, niche and emerging players, leading to heightened competitive intensity. In addition, changing consumer preferences, particularly rising health consciousness, and the growing influence of digitally native brands necessitate continuous innovation and portfolio differentiation. Further, elevated input costs, particularly in items such as cocoa, along with intensifying competition across formats and price points, continue to impact profitability across the category.

Rusk

The Rusk category is expected to offer significant growth opportunities owing to its fragmented and predominantly unorganised market structure, creating opportunities for organised players with strong brands, extensive distribution networks and consistent product quality. In addition, evolving consumer preferences and increasing demand for differentiated offerings provide opportunities for product innovation, premiumisation and expansion of consumption occasions.

However, evolving consumer preferences and an increasing inclination towards local and regional brands, may pose challenges to sustainable growth. Further, the category continues to be closely associated with tea-consumption occasions, making it important to enhance the category relevance, broaden consumer appeal and expand usage across a wider range of consumption occasions to support long-term growth.

Bread

The Bread category presents significant growth opportunities driven by increasing consumer preference for healthier, nutrition-focused and premium offerings. Rising demand for protein-rich, high-fibre, clean-label and differentiated bread variants provides avenues for innovation and premiumisation, while the growing relevance of Quick commerce and other digital channels is enhancing consumer access and category visibility.

However, the category is witnessing increasing competition from insurgent and niche brands that are actively investing in innovation, premium positioning and consumer engagement. Rapidly evolving consumer preferences and the growing demand for differentiated offerings necessitate continuous portfolio innovation and product enhancement to sustain competitiveness and market relevance.

(B) DAIRY BUSINESS

The Dairy category provides significant growth opportunities driven by increasing adoption of Quick commerce and E-commerce, which are expanding consumer access to Dairy products across markets. Rising consumer focus on health, wellness and convenience is further supporting demand for high-protein, nutrition-focused and ready-to-consume dairy products, creating avenues for portfolio expansion and premiumisation.

At the same time, the business remains exposed to volatility in milk procurement costs, which may impact margins and profitability. The value-added dairy segment is also witnessing heightened competition from both organised and regional players, resulting in increased pressure on market share and category growth. Further, demand for certain dairy categories may be influenced by seasonal consumption patterns and changing consumer preferences, necessitating continued focus on portfolio relevance, execution excellence and innovation.

(C) ADJACENT BUSINESS

Wafer

The Wafer category offers significant growth opportunities driven by increasing consumer preference for indulgent and differentiated snacking formats. Growing traction in premium segments, particularly wafer rolls and other value-added offerings, provides avenues for category premiumisation and value growth. Further, relatively low category penetration levels and the increasing relevance of E-commerce and Quick commerce channels are expected to support consumer expansion, product discovery and category development across markets.

However, the category remains highly fragmented, with the presence of numerous unorganised regional players contributing to heightened competitive intensity. Sustaining consumer interest in traditional formats and continuously delivering differentiated offerings will remain important to maintain category relevance.

Croissant

The Croissant category presents significant growth opportunities driven by increasing consumer acceptance of global bakery formats, rising disposable incomes and evolving preferences for indulgent and premium snacking experiences. As category awareness continues to improve and penetration expands beyond early adopters and younger consumer cohorts, Croissant is expected to witness broader acceptance across consumer segments. The category also presents opportunities for innovation, premiumisation and differentiated formats that caters to evolving consumption occasions.

However, the category remains at an early stage of development, with relatively low consumer awareness compared to more established bakery segments. Sustained investments in category creation, consumer education and distribution expansion will be critical to drive adoption and unlock long-term growth potential.

(D) INTERNATIONAL BUSINESS

International Business is well-positioned for growth across key markets in the GCC (‘Gulf Cooperation Council) countries, Americas and Africa, supported by E-commerce expansion, localised manufacturing and portfolios tailored to regional preferences. Further growth potential exists in white-space markets across Latin America, Asia, Europe and Russia, creating significant opportunities for large international brands such as Britannia to expand their global footprint. Consumer engagement initiatives through Artificial Intelligence (AI) & Augmented Reality (AR) and distribution expansion are further expected to support long-term growth and market development.

However, the business remains exposed to geopolitical developments in the Middle East, currency volatility in certain parts of Africa and the Levant region leading to rising input and freight costs, which may impact growth & profitability. Further, Modern Trade dominance in several markets increases the cost of operations, while competition from both local and global players necessitates continued agility and focused execution.

IV. OUTLOOK AND KEY RISKS

The Indian economy is expected to sustain strong growth momentum relative to global peers, with real GDP growth projected in the range of 6.5 to 7%, supported by resilient domestic demand, stable financial systems and continued policy support. Inflation is expected to remain broadly within the RBIs target range, although geopolitical developments, particularly in energy markets and global supply chains, may continue to influence input costs and overall demand conditions.

Britannia operates across categories that are supported by favourable demographic trends, increasing urbanisation, rising disposable incomes and growing preference for branded and convenient food products. The demand environment is expected to remain stable, supported by gradual recovery in rural consumption, premiumisation across urban markets and the increasing penetration of Modern Trade, E-commerce and Quick commerce channels.

Growth opportunities are expected to emerge through value-led penetration in mass segments, premiumisation across differentiated offerings and increasing consumer preference for healthy and nutritious products. In Dairy, the ongoing shift towards value-added and nutritional products is expected to create new avenues for growth, while in International Business, localised manufacturing and deeper market penetration across key geographies are expected to support future growth momentum.

However, volatility in the cost of key input items such as wheat, sugar, milk, edible oils, crude oil & gas etc., remains a key risk and may require calibrated pricing and cost management actions. Competitive intensity across categories, including regional players in value segments and emerging brands in premium segments, may continue to exert pressure on pricing, profitability and market share.

Evolving consumer preferences towards health, nutrition and clean-label products necessitate continuous portfolio adaptation and innovation. Further, increasing reliance on Digital and Quick commerce channels also adds execution complexity in areas such as demand planning, inventory management and channel economics.

Britannia remains focused on strengthening its brand portfolio, driving innovation, enhancing distribution effectiveness, improving supply chain agility, expanding its presence across emerging channels and maintaining disciplined cost management to navigate these risks and deliver sustainable growth.

V. FINANCIAL AND OPERATIONAL PERFORMANCE

The key highlights of the financial performance (on standalone basis) are given below:

(Rs. in Crores)

Particulars	2025-26	2024-25
Revenue from Operations	18,445.82	17,295.92
Operating Profit	3,085.70	2,778.98
Profit After Tax	2,561.72	2,130.72

The Companys Financial Performance during FY 2025-26 was driven through robust distribution network, sustained brand investments, innovation & premiumisation, alternate channel expansion, manufacturing & supply chain efficiencies, cost optimisation initiatives and continued investments in People and their capability development.

Further details of the ‘Financial Performance and ‘Operational Performance are given in Clause (I) & Clause (II) of the Boards Report and the Financial Statements of the Company, which form part of the Annual Report.

VI. KEY FINANCIAL RATIOS

The key financial ratios (on standalone basis) along with the explanation for significant changes in these ratios, if any, compared to the previous financial year are given below:

Particulars	Unit of Measurement	2025-26	2024-25
Net Profit Margin	%	13.7	12.1
Operating Profit Margin	%	16.7	16.1
Debtors Turnover Ratio	Times	45.6	45.8
inventory Turnover Ratio	Times	36.3	37.1
Debt Equity Ratio	%	29.0	31.3
Current Ratio	Times	1.1	1.0
Interest Service Coverage Ratio*	Times	30.7	22.1
Return on Net Worth*	%	60.1	57.5

* Interest Service Coverage Ratio has changed by 39%, primarily on account of lower interest cost and higher profit before tax.

* Return on Net Worth has changed by 5 %, primarily on account of increase in Net Worth.

VII. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Companys Internal Control Systems are commensurate with the nature, size and complexity of its business. The Companys Enterprise Resource Planning (ERP) system, SAP S/4F1ANA, along with supplementary IT systems such as Arteria and Advanced Planning and Optimization (APO) systems, provides a robust technology architecture and serve as key business enablers. Investments in Information Technology have enabled automated accounting and financial closing processes, resulting in improved accuracy, enhanced availability of information at a granular level and faster financial reporting with minimal manual intervention.

The Board have laid down Internal Financial Controls to be followed by the Company and such policies and procedures have been adopted for ensuring the orderly and efficient conduct of business, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information.

An independent firm carries out the Internal Audit of your Company and reports its findings to the Audit Committee on a regular basis. The Internal Auditor provides assurance on the functioning, adequacy, effectiveness and quality of Internal Controls through periodic auditing and reporting. The Internal Risk and Control functions also evaluate organisational risks along with the controls required for mitigating such risks.

Your Company has a Code of Business Conduct applicable to all employees and a clearly articulated and internalised delegation of financial authority. Your Company also takes prompt action in case of any violations of the Code of Business Conduct by its employees. Your Company also has a compliance management system to monitor and ensure timely compliance with the applicable Statutory Laws, Rules and Regulations.

During the year under review, the audit of Internal Financial Controls was carried out by the Statutory Auditors and their Report on the same is forming part of the Annual Report.

VIII. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Britannia consider its People as its greatest asset, and it firmly believes in empowering People to MAKE Ti)NGS E1APPEN. Guided by the values of INVITi)NG, IGNITi)NG, CREATING and RESPECTi)NG, the Company believes that building a resilient, innovative and inclusive organisation begins with a culture that empowers individuals to take ownership, lead, grow and create value for the society. Britannia continues to foster an environment where individuals are inspired to innovate, collaborate and MAKE Ti)NGS E1APPEN together, every single day.

INVITi)NG - Fostering a Culture of Well-being and Belongingness:

At Britannia, the spirit of INVITi)NG is reflected in a workplace that is welcoming and inclusive, where people feel valued, supported and respected. Rooted in the belief that Britannia is more than just a place of work - a place employees can truly call home, the Company continues to nurture a culture defined by openness, professionalism, mutual respect and a strong sense of belongingness. This people-centric environment encourages employees to build lasting connections, embrace ownership and support one another in their personal and professional journeys.

Reflecting this commitment, Britannia offers a range of holistic wellness initiatives designed to support the emotional, physical, financial and social well-being of its employees. During FY 2025-26, programmes such as Mindful Mondays, Wellness Wednesdays and Fitness Fridays provided nearly 1,145 employees with access to expert-led sessions on mindfulness, emotional wellbeing, financial wellness and physical fitness.

Your Companys commitment to employee well-being was further reflected through FitBrit 5.0, Britannias flagship fitness challenge, which encouraged over 650 employees to pursue their fitness goals through walking, running and cycling. Together, participants covered more than 95,000 kilometres, demonstrating remarkable enthusiasm and perseverance. Beyond encouraging healthier lifestyles, the initiative promoted team spirit, meaningful connections and a shared sense of achievement across teams and locations in the organisation.

Through these initiatives, your Company continues to cultivate an environment where employees feel connected, supported and inspired, reinforcing Britannias aspiration to be a workplace where people not only grow professionally but also thrive personally.

IGNITi)NG - Fuelling Ambition and Leadership:

At Britannia, IGNITi)NG reflects our commitment to build a future ready organisation by investing in the growth and development of our people. Recognising that growth comes from within, the Company continues to invest in robust capability-building initiatives, learning platforms and leadership development programs that foster innovation and learning, encourage collaboration and empowers its people to continuously enhance their skills, embrace new opportunities and contribute meaningfully to the Companys long-term success.

As part of these efforts, your Company continued to strengthen platforms that enabled learning, knowledge sharing and capability development across the organisation. During the year, your Company further strengthened its community learning platform, enabling over 640+ Managers to share knowledge, access external perspectives and upskill through curated e-learning modules.

In line with its commitment to foster a culture of creativity and excellence, Britannia actively collaborates with leading academic institutions to tap into emerging talent. During the year, your Company launched ‘Creatovate - Create & Innovate with Britannia, a national case study competition designed to engage with emerging talent and foster entrepreneurial thinking. The initiative attracted over 3,650 registrations from students across more than 12 premier management institutions. Participants applied analytical rigour, creativity and strategic thinking to develop innovative business solutions, supported by mentorship from Britannia leaders and cross-functional experts. The competition culminated in a Grand Finale at the Companys Executive Office situated in Bengaluru, Karnataka, where the top teams presented their ideas before the Executive Committee. Beyond strengthening

Britannias employer brand, Creatovate created meaningful opportunities for young talent to engage with business leaders and gain exposure to Britannias culture of innovation and excellence.

Further strengthening its innovation ecosystem, your Company continued Ingenious 2025, its flagship campus programme focused on product development and packaging innovation. Designed in partnership with leading academic institutions, the programme encourages students to apply scientific and creative thinking to solve industry-relevant challenges. The initiative witnessed enthusiastic participation, generating nearly 500 submissions and resulting in selected students undertaking immersive internships with Britannias Research & Development teams. Working on live projects aligned with the Companys innovation agenda, participants gained hands-on exposure to product development and consumer-centric innovations. The programme not only enabled the Company to identify high-potential talent but also reinforced a culture of experimentation, problem-solving and continuous improvement.

Britannia continued to invest in digital platforms that enhance collaboration and improve the employee experience. During the year, the Company transformed BritKonnect1, its enterprise intranet platform, into a unified digital workplace that seamlessly integrates employee services, performance management tools, policies, communication channels and organisational updates. By providing a single point of access to critical resources and information, BritKonnect has simplified workplace processes, strengthened connectivity across teams and enabled employees to work with efficiency, transparency and agility.

Through these initiatives, Britannia continues to foster a culture where learning, innovation and leadership development are deeply embedded in the way we work, empowering our people to unlock their potential and contribute to the Companys long-term growth and success.

CREATi)NG - Enriching Careers, Empowering Growth:

At Britannia, we believe in building ‘enriching careers by giving people opportunities to grow, explore and exceed expectations. Guided by the philosophy of ‘Britannia for Britannians, the Company fosters growth through early responsibility, cross functional exposure and learning-by-doing experiences that help employees realise their potential and prepare for larger roles. Towards its on-going efforts to develop leaders at all the levels, your Company continues to invest in its flagship programs such as TEAP (Teadership

Excellence Accelerated Program) for emerging managers, STEP (Sustainable Talent Enhancement Program) for promising leaders, ASPIRE for mid-managers transitioning into leadership roles and a comprehensive Teadership Development Program for high-potential individuals, to strengthen and enhance the leadership skills and create the next generation of leaders.

During FY 2025-26, around 15% of the Managers nominated across levels participated in these programs, gaining valuable exposure, strengthening their leadership capabilities and preparing for expanded responsibilities. Through these initiatives, Britannia continues to create enriching careers that combine continuous learning, personal growth and leadership development, while building a strong pipeline of future-ready leaders.

RESPECTi)NG - Promoting Responsible Citizenship through Volunteering and Community Action:

Guided by its RESPECTi)NG ethos, your Company continues to nurture a culture rooted in ethical conduct, responsible citizenship and respect for people, communities and the environment. A key expression of this commitment is your Companys structured Employee Volunteering Program, ‘Big Hearts, which encourages employees to contribute towards creating positive social impact.

During the year, ‘Big Hearts brought together over 313 employees across 11 volunteering initiatives focused on education and hygiene. Through their collective efforts, the employees created over 2,400 educational and community support resources, including school supplies and infrastructure improvements, positively impacting over 2,734 individuals across local communities. Beyond creating tangible outcomes, the programme strengthened a shared sense of purpose and encouraged employees to actively contribute towards meaningful community development.

These initiatives reflect Britannias belief that meaningful societal impact stems from everyday actions. By encouraging employee-led volunteering and integrating sustainability into workplace culture, your Company continues to reinforce its long-term commitment to ‘DO THE RIGHT Ti)NG i.e., doing whats right for the People, Community and the Planet.

A Culture Built for the Future

At Britannia, People are at the heart of everything we do. Through our INVITi)NG, IGNITi)NG, CREATi)NG and RESPECTING ethos, we continue to foster a workplace culture where People feel valued & connected and are empowered to grow & contribute their best. As on 31 March 2026, 23,755 people were employed by the Company (on permanent and non-permanent basis, at a consolidated level), whose passion, curiosity and commitment continue to drive Britannias success.

Britannias quarterly Townhall sessions continue to be a key driver for fostering an environment of open and transparent communication and shared learning for the employees. By keeping employees connected to the Companys strategic priorities, progress and aspirations, these interactions reinforce a strong sense of belongingness and collective ownership across the organisation.

Your Company remains committed to investing in its people, nurturing leadership, supporting well-being and creating meaningful opportunities for growth. Together these efforts will enable Britannia to grow as an organisation built around its People.

Awards & Recognitions:

AmbitionBox Employee Choice Awards (ABECA) 2026

Britannia has been recognised at the AmbitionBox Employee Choice Awards (ABECA) 2026 in the FMCG Category, a recognition driven entirely by employee feedback and workplace experiences. This achievement reflects the trust and confidence that employees place in your Company and underscores Britannias continued commitment to fostering an inclusive, people-centric and growth-oriented workplace that places its people at the heart of its success.

Top 10 Desirable FMCG Companies 2026

Britannia was once again recognised among the Top 10 Most ‘Desirable FMCG Companies 2026 by Unstop, positioning it as an employer of choice in the FMCG sector. This recognition reflects your Companys continued focus on creating enriching careers, fostering professional growth and providing meaningful learning opportunities that enable individuals to realise their potential.

Top 25 Prestigious B-School Campus Engagements 2026

Britannias flagship campus engagement initiative, Creatovate (Create and Innovate with Britannia) was recognised among the Top 25 Prestigious B-School Campus Engagements 2026 by Unstop, in its inaugural year. Designed to inspire innovation, problem-solving and industry engagement among management & engineering students, Creatovate successfully established itself as a distinctive platform for connecting with emerging talent. This recognition reflects Britannias commitment to fostering innovation-led learning experiences and building meaningful engagement with the next generation of leaders.

“10% Club” of the Jombay 1000 Women Leaders Program 2025

Britannias commitment to developing women leaders continued to gain recognition at the Jombays 1000 Women Leaders Program 2025. Marking the second consecutive year of achievement, 6 (six) women professionals from Britannia earned a place in the prestigious ‘10% Club, securing this distinction among a cohort of over 500 participants. The recognition is a testament to your Companys sustained focus on creating opportunities for women to learn, lead and thrive, while strengthening a diverse and future-ready leadership culture.

This accomplishment reflects Britannias IGNITi)NG value of fuelling ambition and its CREATi)NG ethos of empowering individuals to realise their leadership potential and build meaningful and future-ready careers.

ET Nows Best Organisations to Work 2025

Britannia Industries Limited has been recognised as one of the ‘ET Nows Best Organisations to Work 2025, reaffirming the Companys commitment to fostering a workplace where people can learn, grow and thrive. The recognition reflects Britannias continued focus on building an inclusive, high-performance culture that prioritises employee experience, career development and a strong sense of belongingness. It stands as a testament to your Companys people-first philosophy and its efforts to create a workplace where individuals are empowered to realise their full potential.

IX. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis Report describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable Laws and Regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to your Companys operations include raw material availability and/or prices, cyclical demand, pricing, competitive actions, disruptions due to pandemic and/or natural calamities, changes in government and/or tax regulations, geopolitical & economic developments, in India and in countries in which the Company operates and other incidental factors.