#EBITDA #GROWTH

In FY25, the EBITDA grew by 2% YoY to ₹3,003 cr mainly led by declined in raw material cost and employee benefit expense. Geography wise, India business EBIT declined by 13.7% YoY to ~₹2,220 cr due to surge in palm oil prices. Indonesia business grew by 9.2% YoY to ₹492 cr, Godrej Africa, US, & Middle East (GAUM) business grew by 40% YoY to ₹341 cr and others (includes Latin America & South Asian Association for Regional Cooperation (SAARC)) grew to ₹80 cr (v/s ₹21 cr in FY24). Out of the total expenses, raw material cost including packaging materials consumed constituted ~50%, other expenses ~32%, employee benefit expenses ~10% and purchase of stock in trade constitute ~8% of the total expenses. Under other expenses, advertisement and publicity expenses stood at ₹1,369 cr (9.5% of total sales). During the year, the advertisement and publicity expense grew by 2.5% YoY to ₹1,369 cr.

#PAT #GROWTH

In FY25, the PAT stood at ₹1,852 cr (v/s loss of ₹561 cr in FY24 due to exceptional loss of ₹2,477 cr pertaining to impairment loss of ₹1,391 cr towards brand and goodwill for Africa and ₹927 cr relating to loss on sale of subsidiaries and business in East Africa pursuant to changes in business model and long term strategy for Africa, ₹71 cr on account of other group restructuring costs, including employees' severance pay and inventory related costs etc and stamp duty payment and other costs in relation to acquisition of Raymond Consumer Care Business of ₹87.8 cr). Excluding exceptional loss in FY24 of ₹2,477 cr and ₹63.2 cr in FY25, the PAT stood at ~₹1,915 cr (v/s ~₹1,916 cr in FY24).

#EBITDA #MARGIN

In FY25, the EBITDA margin remained in the similar level of 20.9%. Geography wise, India business EBIT margin contracted by 567 bps YoY to 24.9% due to higher palm oil prices. The Indonesia business margin expanded by 86 bps YoY to 24.7% led by improvement in gross margin. Godrej Africa, US, & Middle East (GAUM) business margin expanded by 521 bps YoY to 12.9% driven by gross margin expansion, mix improvement and reduction in controllable costs. The others (Latin America & SAARC) business margin expanded by 549 bps YoY to 8.3%. The company key raw materials are palm oil and crude derivatives chemicals. Due to inflation in palm derivatives, the company had taken significant price hikes across the portfolio. It will result in reduced volume-led growth and increased price-led growth.

#PAT #MARGIN

In FY24, the PAT margin was negative 4% because of exceptional loss. In FY25, the PAT margin stood at 12.9%. Excluding the exceptional losses, the PAT margin stood at 13.3% (v/s ~13.6% in FY24).

#ROCE

In FY25, the return on capital employed improved to ~19.2%. In FY24, the return on capital employed declined to 3.3%. The ratio was lower due to exceptional loss during the year pertaining to impairment loss towards brand and goodwill for Africa and related to loss on sale of subsidiaries and business in East Africa pursuant to changes in business model and long term strategy for Africa. Excluding exceptional loss, the return on capital employed in FY24 stood at ~22.5%.

#ROE

In FY25, the return on equity improved to ~15.1%. In FY24, excluding the exceptional loss, the ROE stood at ~14.5%.

#COMPANY #POTENTIAL

• Personal wash: The Indian personal wash market is highly competitive. Many companies are present in the Indian market. The consumption of bath bar soaps is high, whereas it is very low for body wash and shower gel products as it is still a new category for many consumers. Innovative variants and product development has driven the personal wash market in the past few years and will continue to expand the categories by introducing newer products. • Hair Care: The Indian hair care market is forecasted to reach USD 4.89 billion by 2025 growing at a CAGR of 6.58% during the period (2020-2025). The hair care market in India offers products such as a colourant, hair spray, conditioner, styling gel, hair oil, shampoo, and other products. • The changing consumer dynamics coupled with increasing product awareness has been identified as the major driver of the market. These changes are majorly due to the high millennial population migration towards cities and rising women employment. Household-insecticide: In Indian household market insecticide, mosquito repellent category is dominant over cockroach & rat repellent category, simply because of the large population based in rural India. Again, in the mosquito repellent category, there are two segments namely in-home segment and personal & outdoor segment. In-home segment has been growing in the country from last many years, but personal & outdoor segment is still at a nascent stage with products like creams, lotions, patches, gels, etc. Rise in vector borne diseases and awareness will Increase the demand of household Insecticide products in India.

#COMPANY #OUTLOOK

• In FY26, the management targets high-single digit consolidated revenue growth (driven by mid-high single digit standalone volume growth) and double-digit EBITDA growth. • The management aims to achieve double-digit growth in the medium to long term (largely volume-led growth). It targets a consistent rise in operating profit margin through premiumization and operating efficiencies in the medium to long run (especially in the international business). • The company is focusing on category development, innovation-led premiumization, market share gains, improving volume growth across categories and geographies and cost efficiencies in media and supply chain. • The company commenced operations at two of its newly inaugurated factories - Chengalpattu in Tamil Naduand and Malanpur in Madhya Pradesh. • The management anticipates efficiency in sourcing and higher productivity due to newly opened factories and savings in A&P spends to help combat the impact of palm inflation in H1 FY26. • It expects international margins to keep improving sequentially, albeit at a slower pace. • The management expects Household Insecticides (HI) and deodorants can perform much better in FY26 as compared to FY25. Further, it expects growth and margins in H2 FY26 to be better than H1 FY26. • For Park Avenue and Kamasutra, the company aspired to achieve double-digit volume growth and EBITDA margins in line with standalone margin. • The company spent over ₹100 cr on rural van operations in FY25. This helped improve their village/rural outlet reach. Management believes that rural van operations could break-even in FY26 and be accretive from FY27.
It has witnessed a spike in its sales through e-commerce channels and going ahead it expects online sales to contribute around 10% to its total sales in the next 2-3 years. • In Q3 FY24, the company launched Godrej Fab liquid detergent in select markets of South India at a price of ₹99 per litre. It will scale up gradually in the other markets. It also launched Goodknight Agarbatti. It is India's only government registered active based anti-mosquito Agarbatti. Goodknight Agarbatti uses a new molecule, Renofluthrin (RNF), which is close to 2x more effective than most other molecules used in India. The company enjoys exclusivity to use this molecule in the medium term. The market size of Anti-mosquito incense sticks is ~₹1,200 cr. • Goodknight Agarbatti crossed ₹100 cr in sales in 15 months of launch and Goodknight LV (Liquid Vapourizer) gained ~200 bps market share in Q4 FY25. • The company plans to enter the pet care business in India through Godrej Pet Care (GPC), a subsidiary of Godrej consumer products Limited (GCPL). The pet care is a ~₹5,000 cr category, with a potential of strong double-digit growth for the next few decades. The company will invest ₹500 cr in Godrej Pet Care over a period of 5 years. Godrej Agrovet Limited (GAVL) will be the manufacturing and research & development (R&D) partner. The company expects to commence manufacturing in the second half of FY26. It expects ~15%-25% of EBITDA margin in this business. • In April 2025, it launched ‘Godrej Ninja’, its pet care brand, in the state of Tamil Nadu.

Godrej Consumer Products 1000-1070
Expected level 1300
Support 800

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Britannia Industries Limited Company Details Report

Britannia Industries Limited, established in 1892, is one of India’s oldest food products companies and part of the Wadia Group. It is one of the largest players in the biscuit industry in India. The company operates in the food segment and derives majority of its revenues from the biscuits segment. The company, however, over the years have diversified into other segments like bread, dairy products, cakes, snacks, milk shakes, croissants, wafers and rusk. Few of its prominent brands include Good Day, Marie Gold, Tiger, NutriChoice, Milk Bikis etc. In 2022, it formed joint venture with Bel SA, renowned French cheese maker, to foray into cheese making business. The business operates with 54 factories of which 16 are its own and 38 are third-party factories. It has a distribution network of 28.7 lakhs outlets and ~31,000 rural distributors in India as on 31st March 2025. Its products are also exported to over 79 countries including Middle East, North America, Europe, Africa and South East Asia.

Products wise revenue

#SALES #GROWTH

In FY25, net sales was ₹17,943 cr, up by 7% YoY. The e-commerce segment witnessed 7.4x growth as compared to other channels. The company has been focusing on the adjacent categories. Within, the adjacent categories croissants and wafers grew 3x v/s biscuits, while rusk posted high-single digit value growth. Revenue from croissants was closer to ~₹200 cr and wafer neared ~₹100 cr. Drinks recorded healthy double-digit growth across all channels, with revenue from milkshake crossing the ₹200 cr mark during the year.

#EBITDA #GROWTH

In FY25, EBITDA increased by ~0.5% YoY to ₹3,187 cr. Gross profit saw an uptick of 0.8%. During the quarter, major raw materials of the company remained elevated, especially palm oil (up 54% YoY), cocoa (up 83% YoY) and milk (up 21% YoY). However, the prices of cocoa saw a sequential improvement and declined by 4%.

#PAT #GROWTH

In FY25, PAT was ₹2,189 cr, up by 2.4% YoY. The company incurred exceptional loss of ₹25 cr, which pertains to VRS (voluntary retirement scheme) announced by the company in one of its factories (~₹19 cr) and towards contract laborers of the said factory (~₹6 cr). Finance cost declined by 15% YoY to ₹139 cr.

#PAT #MARGIN

In FY25, PAT margin was 12.2%, contraction of 55 bps YoY.

#EBITDA #MARGIN

In FY25, EBITDA margin was 17.8%, contraction of 114 bps YoY led by lower operating margin. The company undertook strategic pricing actions, nimble approach in emerging channels and cost savings initiatives to aid the margins. Price hike was taken towards the end of the year in order to counter inflation and sustain margins.

#ROCE

In FY25, ROCE was 53% v/s 49.3% in FY24.

#ROE

In FY25, ROE declined to 52.5% owing to increase in the company’s net worth.

#COMPANY #POTENTIAL

• In Q1 CY25, the FMCG industry reported value growth of 11% YoY. The price led growth was 5.6% YoY. • The growth in Q1 CY25 was led by smaller packs as the unit growth was 6% YoY v/s volume growth of 5.1% YoY. • The rural growth outpaced urban growth for the 5th consecutive quarter. Urban demand growth was 2.6% while rural demand grew 8.4% in Q1 CY25. • Traditional trade volumes grew by 6.2% in Q1 CY25, as compared to 5% in Q1 CY24. Whereas modern trade volumes reduced by 3.3% v/s 15.4% growth in Q1 CY24. • Food consumption growth moderated to 4.9% in Q1 CY25, largely driven by lower volumes in staple categories such as edible oils and palm oil, where price hikes impacted demand. • E-commerce continued to strengthen its presence significantly in 8 metro cities, impacting the share of offline channels. Going forward, channel mix will shift dramatically in favour of e-commerce. The growth in e-commerce channel have aided the sector to drive strong growth in the urban sector. FMCG companies are focusing on digitisation for enabling smooth functioning of its supply and distribution channel. • The per capita consumption of biscuits is India is 2.5 kgs per year, lower as compared to other countries. (Source: Technopak) • The Indian cheese market is expected to reach $1.5 billion by FY26, growing at a CAGR of 18.5% between FY21 to FY26. The market was estimated at ~₹8,900 cr in FY23. (Source: Indian Dairy Association; IMARC) • The wafer market in India was estimated at ~₹1,000 cr in FY24