Britannia Industries Ltd has sharply reduced its FY26 capital expenditure to ₹100 crore, a 77% drop from the previous year’s ₹436.89 crore, as major manufacturing expansions completed in FY25 have created ample production capacity. The company’s focus now moves to maintenance, operational efficiency, and margin improvement.
Britannia Industries Ltd, headquartered in Bengaluru, Karnataka, is among India’s largest food and FMCG companies, with a diversified portfolio spanning biscuits, dairy, bakery, and snacks. Its flagship brands include Good Day, Marie Gold, Tiger, NutriChoice, and Treat. The company has a manufacturing footprint across India and a distribution network reaching over 5 million retail outlets.
FY26 Capex Rationalisation
For FY26, Britannia has allocated ₹100 crore for capital expenditure, compared to ₹436.89 crore in FY25 and well below its historical average of ₹600–650 crore over the past five years.
The decision reflects a strategic shift following the commissioning of three new manufacturing plants and capacity upgrades across multiple locations last year. These included a new line in Bihar, additional lines in Tamil Nadu, and significant expansion at the Ranjangaon facility.
Vice Chairman and Managing Director Varun Berry said that FY26 will be “a normal capex year” with spending directed mainly towards plant maintenance, equipment upgrades, and operational efficiency improvements, rather than greenfield expansions.
Historical Capex Overview
| Financial Year | Capex (₹ crore) | Key Projects |
| FY26 (Est.) | 100 | Maintenance, efficiency upgrades |
| FY25 | 436.89 | Bihar, Tamil Nadu, Ranjangaon expansions |
| FY24 | 500–600 | Dairy segment, Ranjangaon, Bihar |
| FY23 | 650–700 | Uttar Pradesh plant, Ranjangaon, Odisha, Tamil Nadu |
| FY21 | 200 | Limited pandemic-year spending |
Also Read: A Major Shift in India’s FMCG Giant: Britannia CEO Resigns
Q1 FY26 Performance
In the April–June quarter, Britannia reported consolidated revenue of ₹4,101 crore, a marginal increase from ₹4,089 crore in Q1 FY25 and slightly higher than Q4 FY25. Net profit came in at ₹457 crore, marginally lower than ₹457.6 crore a year earlier and down from ₹556 crore in the preceding quarter.
The company registered double-digit growth in four focus states and adjacent bakery categories, such as rusks, wafers, and croissants. Berry noted that moderating inflation has triggered a mild but positive recovery in both rural and urban markets, aiding overall volume growth.
Margin Outlook and Inflation Impact
Britannia expects margins to improve through the remainder of FY26, supported by:
- The full impact of price revisions already implemented in FY25.
- Stable commodity prices, particularly in wheat, sugar, and dairy inputs.
- Greater operational efficiency from modernised production facilities.
While no additional price increases are planned in the short term, the company believes that the low-inflation environment will support sustained profitability.
Strategic Growth Channels
The company is seeing strong traction in modern trade and e-commerce, with significant market share gains in these channels. Investments in distribution network expansion and premium product offerings have also contributed to stronger sales.
Britannia’s focus on digital sales platforms, product innovation, and regional market penetration remains central to its growth strategy.
READ MORE ON