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Britannia to Raise Prices From Q1 FY27 as Freight and Input Costs Jump

Rising freight and commodity costs are pushing the biscuit maker to prioritise margins over volume.

Overview

  • Britannia, which posted its March‑quarter results Friday, said it will start calibrated price hikes in Q1 FY27 and shrink some packs, though it has not disclosed the size of the increases.
  • The stock fell about 4% to 5% in early trade to a three‑week low after the pricing signal.
  • Management cited a surge in ocean freight and fuel and higher costs of flour, cocoa and palm oil linked to the West Asia conflict.
  • Shipments through the Strait of Hormuz were delayed in March, and the company said it is shifting sourcing between India and overseas plants to ease pressure.
  • Net profit rose about 21% to ₹678 crore with a record ₹90.5 per‑share dividend, while Motilal Oswal kept a Neutral view citing a rich valuation near 57x earnings and risks to volume recovery.