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Shares of Britannia Industries decline as much as 5% to a three-week low, in the early trade on Friday.
On the impact on the US-Iran war, Britannia said there has been a significant increase in fuel costs and ocean freight rates.
Good Day biscuit maker Britannia Industries on Friday announced price hikes on its products beginning the first quarter of FY27, citing a significant rise in freight costs linked to the Iran war. The development means that Indian consumers may soon have to pay more for everyday staples such as biscuits, cakes, rusks and dairy products.
In its investor presentation released on May 8, the company said it is “initiating calibrated price increases from Q1’27″ as it battles elevated input costs, especially in commodities such as flour, cocoa and palm oil.
Britannia has not specified the quantum of the planned price rise.
Shares of Britannia Industries declined as much as 5% to a three-week low, in the early trade on Friday.
Britannia said commodity inflation remained high during the quarter, with sharp increases in cocoa prices continuing to pressure profitability. The company also highlighted inflationary trends in key raw materials, including wheat flour and edible oils.
“Significant increase in fuel costs, ocean freight rates,” Britannia said, on the impact on the US-Iran war.
Consumers are likely to see gradual price increases across Britannia’s mass-market categories, including biscuits such as glucose, Marie and cream variants, premium cookie products, cakes and rusks, bread products, dairy offerings including cheese and milk-based products.
Companies often implement a mix of small price revisions, reduced promotional offers, grammage cuts (‘shrinkflation’), and premiumisation strategies. This means consumers may either pay slightly more for the same product or receive lower quantity at existing price points.
Late on Thursday, Britannia posted a more than 20% year-over-year rise in consolidated quarterly profit to Rs 678 crore. However, sales growth slowed from the previous quarter.
The company said it would optimise sourcing between India and overseas plants for key markets to ease supply pressures by mid‑May.
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