BRITANNIA

Shares Jump 5% After Q1 Beat; Nomura Maintains 'Buy' with 20% Upside

Summary:

shares rallied nearly 5% on Friday after the company reported strong Q1 FY27 results, outperforming the broader market and ending a three-session losing streak. The FMCG major posted a 14.1% YoY increase in consolidated net profit to ₹593.4 crore, while revenue rose 8% YoY to ₹4,900.9 crore, supported by healthy volume growth and price hikes. EBITDA grew 11% YoY to ₹840 crore, with the EBITDA margin improving to 16.8%. Gross margin expanded 120 basis points YoY, though higher advertising and promotional spending weighed on quarterly profitability. Following the earnings, Nomura reiterated its 'Buy' rating with a target price of ₹6,500, indicating a potential upside of about 20%. The brokerage remains optimistic on Britannia's long-term earnings growth despite near-term margin pressures from increased brand investments. Investment in securities market are subject to market risks. Read all the related documents carefully before investing,