Britannia shares close 1.96% higher after Q1 results; analysts mixed on margin miss

A production line at the Britannia biscuit factory in New Delhi;. Britannia reported consolidated net sales of ₹4,964 crore for Q1 FY27, up 9.5 per cent year-on-year, while net profit grew 14.1 per cent to ₹593 crore. | Photo Credit: REUTERS/ADNAN ABIDI

Shares of Britannia Industries closed 1.96 per cent higher at ₹5,510 on the NSE on Friday, touching an intraday high of ₹5,660, as investors responded to the company’s first-quarter results for FY26-27 declared on the previous trading day.

The stock opened at ₹5,502.50 against the previous close of ₹5,404, with traded volume closing at 13.43 lakh shares for the day. Total traded value stood at ₹750.54 crore.

The stock remains well below its 52-week high of ₹6,336 touched in September 2025, while it has recovered from its 52-week low of ₹5,035 hit in June 2026.

Year-to-date, the stock is down 8.31 per cent, underperforming the Nifty Next 50 index, which has gained 7.21 per cent in the same period.

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Analyst reactions were broadly cautious, with most major brokerages maintaining neutral or underperform ratings despite acknowledging improving growth momentum.

JM Financial stood apart with a Buy rating and the highest target price of ₹6,355, noting an in-line revenue performance and an exit run-rate of mid-teen revenue growth. The brokerage estimated volume growth at 6-6.5 per cent for the quarter.

Goldman Sachs and JPMorgan both carry Neutral ratings with targets of ₹6,000 and ₹5,900 respectively, with Goldman flagging an improving growth trajectory while JPMorgan flagged input cost volatility as a key monitorable.

Morgan Stanley is Equal-weight with a ₹5,848 target, calling improving growth commentary a key positive even as margins missed. Macquarie remains the most bearish, with an Underperform rating and a ₹4,800 target, attributing the quarter’s miss to higher other expenses.

The common thread across brokerages was a margin miss offset by a stronger-than-expected revenue exit rate. Britannia reported consolidated net sales of ₹4,964 crore for Q1 FY27, up 9.5 per cent year-on-year, while net profit grew 14.1 per cent to ₹593 crore.

Operating profit rose 12.7 per cent to ₹761 crore, though profit margins dipped compared to recent quarters, with profit after tax at 11.9 per cent of revenue versus 13.4 per cent for the full year FY25-26.