Britannia Shares Fall Despite Strong Q1; SEBI RA Rajneesh Sharma Flags Bullish Breakout Above ₹5,978

Revenue rose 8.7% year-on-year to ₹4,622 crore, while PAT edged up 3% amid steady margins and strong traction in premium bakery products.

Britannia shares declined 3.7% on Wednesday despite reporting an 8.7% growth in revenue for the first quarter. However, its technical charts signal strength going ahead. 

SEBI-registered analyst Rajneesh Sharma sees long-term strength and a bullish breakout setup forming above ₹5,978.

Q1 Earnings Review 

Britannia Industries reported a 3% year-on-year rise in profit at ₹520 crore for the June quarter, though profit fell 7% sequentially. 

Revenue climbed to ₹4,622 crore, up 8.7% YoY (year-on-year) and 4.3% QoQ (quarter-on-quarter). EBITDA margin remained steady at 18.6%, while earnings per share improved to ₹21.62 from ₹20.99 a year earlier.

SEBI-registered research analyst Rajneesh Sharma noted that Britannia benefited from strong performance in products like rusks, wafers, and croissants, while premiumisation through Pure Magic and Good Day Crafted supported growth. 

He said the company maintained stable margins despite rising competition and input costs, aided by agile distribution across urban and rural markets.

Sharma also highlighted management’s continued focus on brand innovation, rural demand recovery, and ESG efficiency. 

However, he flagged limited operating leverage and near-term EPS headwinds as challenges. Still, he maintained that valuations remain reasonable, with the company’s premiumisation strategy offering long-term support.

Technical Breakdown

Sharma said the stock is consolidating just below ₹5,978 following a prior uptrend, with bullish divergences seen on CMF and OBV indicating accumulation. 

The trend structure remains positive, and there is no evidence of aggressive selling pressure.

He added that a breakout above ₹5,978 could push the stock toward ₹6,480, with support levels seen at ₹5,399 and ₹4,900. Sharma maintained a bullish bias, though confirmation is required through a decisive move above resistance.

On Stocktwits, retail sentiment for Britannia was ‘bearish’ amid ‘normal’ message volume.

The stock has risen 13.1% so far in 2025.

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