Synopsis:
The shares of a leading FMCG company dips almost 6percent on the opening session on Tuesday.
The stock of a leading FMCG company has taken a sharp hit after the sudden resignation of its Managing Director and CEO, who also served as the Vice President for 13 years, marking a major leadership change at the top. In this article, we will be analysing how this transition could impact the FMCG giant’s future performance and investor sentiment.
With a market capitalization of Rs. 1,40,405 crore, Britannia Industries continues to be one of the biggest and most trusted names in India’s fast-moving consumer goods (FMCG) sector. However, when trading opened on Tuesday, Britannia’s share price dropped to Rs. 5,739, down by 6.4percent from the previous day’s closing price of Rs. 6,133.
Despite the short-term volatility, the company continues to be recognized for its strong return on equity (ROE) and consistent dividend payout ratio, reflecting its long-term financial stability.
Reason For the Crash
Britannia Industries Ltd announced the retirement of Varun Berry, its Managing Director, CEO, and Vice President, after 13 years with the company. Berry joined Britannia in 2013 as Vice President and COO, leading the FMCG giant through its major phase of growth. Before joining Britannia, berry spent over a decade at PepsiCo India, where he started as Market Unit General Manager in the year 1993.
Varun Berry’s exit comes as Britannia experiments with its next phase of expansion by aiming to become a total foods company.Rakshit Hargave another industry veteran and former CEO of Birla Opus (since 2021), will be the one succeeding Berry as the new MD and CEO.
Business Overview
Britannia Industries is one of the biggest and most trusted food and FMCG brand in India, it is known for its iconic products like Good Day, Tiger, NutriChoice, Milk Bikis, Marie Gold, among other similar household names across the country. The company’s diverse product portfolio spans biscuits, bread, cakes, rusks, and dairy products such as cheese, beverages, milk, and yoghurt.
The latest quarter saw Britannia’s double-digit growth in its Croissant & Rusk and Wafers segments. Along with that, they continued to witness strong performance in the international business as well, specifically the Joint Venture in Kenya. ~85 percent of the business went under a change in its GST Rates with effect from 22nd September 2025. Additionally, the business faced a short term slowdown in September due to inventory reduction and delayed consumer purchases, but the same is expected to normalise in the coming quarters.
The firm also aims to focus on volume-led growth through its consumer-centric products, strong distribution and the competitive pricing. The mid term business outlook is to invest in the core brands with marketing and product upgrades in order to gain leadership in the space along with maintaining cost efficiency. Britannia Industries Ltd has reported a revenue of Rs. 4,841 crore in Q2 FY26, which marks a 4 percent increase from its Rs. 4,668 crore revenue in Q1 FY25.
Talking about the company’s net profit numbers moved from Rs. 532 Crores in Q2FY25 to Rs. 655 Crores in Q2FY26, resulting in a 23 percent surge, and this reflects the strong operational performance of Britannia Industries Ltd. The firm also continues to maintain a healthy dividend payout ratio of 80.1 percent and an impressive three-year average ROE of 58.3 percent.
Written by Adithya Menon
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