BRITANNIA

Eyes Growth Revival Under New CEO Amid GST-Led Pricing Reset

saw a 3% stock dip following the resignation of long-serving MD & CEO Varun Berry, who will be succeeded by Rakshit Hargave on 15 December. Berry’s tenure marked a significant transformation in profitability and market positioning, setting high expectations for his successor. - Leadership Transition: Varun Berry exits after 12 years of steering Britannia from a commodity-like business to a high-margin FMCG player. Under his leadership (FY13–FY25): - EBITDA margin rose 1,100 bps to 18% - PAT margin improved 800 bps to 12% - Revenue, EBITDA, PAT, and market cap grew at 10%, 18%, 20%, and 25% CAGR respectively - Incoming CEO Profile: Rakshit Hargave, former CEO of Birla Opus, brings experience from Beiersdorf and HUL. His strategic direction will be closely watched, especially amid expectations of volume recovery and sustained margin performance. - Q2FY26 Performance: - Revenue grew 3.7% YoY to ₹4,840 crore - EBITDA surged 22% YoY, aided by lower staff and operating costs - EBITDA margin expanded 293 bps to 19.7%, reversing a four-quarter decline - GST Impact & Pricing Strategy: Britannia adjusted pricing post-GST rate cuts—reducing prices on large packs and increasing grammage in small packs. With ~65% of its portfolio in ₹5/₹10 SKUs, this move is expected to support volume growth from mid-November onward. While Q2 profitability beat expectations, volume growth was muted. Analysts highlight growth recovery and strategic clarity under Hargave as key near-term monitorables. The leadership change introduces uncertainty, but Britannia’s fundamentals remain strong.