Indian packaged goods maker Britannia slides on worries Iran war will hit margins (updated)

Britannia Industries

08/05/2026 05:56

Adds consultant comment in paragraph 5

By Chandini Monnappa

May 8 (Reuters) - Shares of India's Britannia Industries BRIT.NS declined as much as 5% to a three-week low on Friday, after the packaged goods maker said it would hike prices from the first quarter, citing a significant rise in freight costs linked to the Iran war.

Britannia shares were down 3.3% to 5,624 rupees at 10:15 IST, on track for their worst session in about a year-and-a-half, if losses hold. India's benchmark Nifty 50 .NSEI was down 0.5%.

Several Indian consumer goods makers have turned to price hikes to offset the hit from Iran war‑driven rise in input costs. Higher raw material prices, fuelled by the surge in crude, are pressuring margins.

Britannia has not specified the quantum of the planned price rise.

"Typically consumer firms tend to hike prices in the first quarter, but with everything that's happening, these hikes won't be enough to offset the actual impact of rising costs," consumer ⁠goods consultant Akshay D'Souza said.

For consumer goods firms, volume growth is critical, while they manage margins and focus on retaining market share, he said.

Late on Thursday, Britannia posted a more than 20% year-over-year rise in consolidated quarterly profit to 6.78 billion rupees ($71.8 million), largely in line analysts' estimates, according to data compiled by LSEG. However, sales growth slowed from the previous quarter.

The Good Day biscuit maker said would optimise sourcing between India and overseas plants for key markets to ease supply pressures by mid‑May.

($1 = 94.4250 Indian rupees)

 (Reporting by Chandini Monnappa and Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala)

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