Ladies and gentlemen, good day and welcome to Britannia Industries Limited Q2 and FY 2027 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ayush Agarwal, Investor Relations. Thank you, and over to you, Ayush.
Good morning, everyone. This is Ayush from the Investor Relations team. I welcome you all to the Britannia earnings call to discuss the financial results of quarter two for financial year 2026-2027. Joining us today on this earnings call is our Managing Director and CEO, Mr. Rakshit Hargave, Deputy Managing Director, Mr. N. Venkataraman, Chief Financial Officer, Mr. Ramamurthy Jayaraman, Chief Commercial Officer, Sales and Replenishment, Mr. Vipin Kataria, and Chief Manufacturing and Procurement Officer, Mr. Manoj Balgi. The analyst deck is uploaded on our website. Before I pass it on to Mr. Rakshit Hargave, I would like to draw your attention to the safe harbor statement in the presentation. Over to Mr. Hargave with remarks on the performance.
Good morning, everybody. The team at Britannia here is happy to present the quarter two performance, and deck is uploaded for all of you. I will go through the deck, both graphic and engagement in the Q&A session. The agenda will be broken into three parts. We will first do the business overview, followed by the strategic priorities, and then we will look at the cost and financials. If we go to the first slide, which is our performance scorecard for Q2 2026/2027, you will see that we have had a decent quarter. The revenue from operations was INR 5,542 crore. On a 12-month basis, it grew by 16.6%. Over Q1 2027, sequentially, grew by 11.6%. PAT for Q2 2027 was at 13% of revenue. On a 12-month growth, it was +10.2, versus Q1 2027, it was at 21.9%. Reasonably healthy numbers.
If we break that and look at the first quarter on a YTD September basis, here you will see that the revenue from operations for the first time crossed INR 10,000 crore in the first half. We were at INR 10,506 crore. The 12-month growth approximating to 13.1%. At a PAT level, the H1 was at 12.5% of revenue, while on a 12-month growth period, it was at 11.7%. We continue to update and share the same strategic priorities which we had defined earlier this year. The first pillar being how do we keep building efficiency in sales, distribution, and supply chain. Second was on elevating brand experiences and trust. Third was driving innovation, efficiencies, and future platforms. Fourth one was the winning in Many Indias. Fifth one was on sustainability. I will delve into that.
To begin with, if you see how we grew across all channels, critical. You will see that the green line is general trade, and the amber line or the orange line is all other channels put together. You will see that from Q2 2026 onwards and going ahead, the line is moving upwards to the right. You will see that our GT growth in Q2 2027 is 2.6 x of the full year FY 2025-2026. Obviously, there is some acceleration in GT, which is welcome because GT is the largest part of our business. If you see, for example, e-commerce, and we are very happy to say that e-commerce is now trending at close to 7% of our overall volume.
The other channels is, you can see that the gap with GT, which is very obvious, because other channels is a mix of modern trade, we have alternate channels, and then we have obviously e-commerce, is trending at a rate which is significantly above GT. Also, we talked about our key states. Our key states are our so-called heavyweight states, which contribute in terms of larger revenues and larger profits. Here, we see that our key states are also pulling up much better than the earlier year, while other states, where maybe the agility or opportunity to grow is more, continue to be faster than our key states. The good part is both of them are again trending positive. Also sharing something interesting, which we did across the quarter.
You will see that our NutriChoice portfolio, we have invested a lot in bringing forth the whole Parle's Nutricrunch is the leader in the healthy biscuit segment, and it is also the leader, obviously, in digestive. The spread of offering that we have was something that we talked about. Then obviously, interesting marketing with our marquee brand, Little Hearts, where you can see the heart emojis sharing this post. Also something interesting that we did in cheese, where we introduced very food range of flavored slices, Korean Chilli, Italian Herb. I will really encourage all of you to taste because it is a good product and it is doing very well across the shelf, although it has been only launched about a month back. Our adjacency business also grew much faster.
You can see that the adjacency bakery business overall grew at more than 20%, and this obviously includes brownie, it includes our croissant, it includes what we call our group of higher growth products. If you take a look at our dairy business also, Sattvam Ghee is drinking very well, and also our milk drink did well. So adjacency business also performed better than what it has done in the past. Our international business also, after the challenges which we had the last quarter, because of the war happening in the Middle East is a large part of our business, recovered. Both the sum total of our Middle East Africa business and the rest of international in good double digits.
Although the cost of operations across Middle East still remains high, largely driven by costs and freight, where you are having to pay a large premium for transporting goods from the region and even to the region. Some interesting campaigns. All of you who are based in Mumbai would have seen the Ganesh Chaturthi promotion with Bourbon Modak, which sold out very fast. Also in Kerala, where Cheeze Dipped as a category is very large in cooking for our competition, and how do you activate the brand along with it. On ESG, we are consistent. We continue to build a profitable business, but with responsibility. The number of women in the factory is at 45%. The Britannia Nutrition Foundation, which does very dedicated work across numerous locations, reached close to 5.73 lakh beneficiaries in the first half of the year.
The renewable electricity share in our own plants is at 48%. Although you would know that there is a capping applied by the government in most of the states in terms of how much renewable electricity you can use. At 48%, I think we are trying to optimize to the best of our ability. If I run through the costs and financials slide, you will see that in terms of input costs, it's not been an easy quarter. It's not been an easy quarter for the whole industry. Wheat flour, sequentially versus Q1, had a spike at +9%. Although if you compare against the previous year in the same period, it's marginally down. Refined palm oil, over Q1, was up by 11% sequentially, and over last year was up by 17%.
Refined palm oil is affected both by food prices, but also by some shortage of rainfall, which is there across the producing markets, also because of some El Niño condition. Sugar is up versus Q1 by 4% and over last year by 6%. You also know that sugar went through a very stormy period during the course of the quarter. Although it has kind of corrected, but obviously it has still remained at a very elevated level. One of the other commodities which is high and high by a significant margin is milk. Over last year, milk is up by 16%, and over the previous quarter, up by 2%. We usually see milk prices ease out during the winter period in India, but we don't see that happening as of till now.
Across industry, most of the large dairy companies are also taking price increases to offset this. It's a challenging period for milk. Laminate is actually one of the more challenging areas for the industry and also for us. Laminate prices have shot up. Over the previous quarter, it is up by 7%, which is a large increase. Over last year, it is up by 18%. We have to watch that very carefully. Laminate is, the product is covered with it. On fuels, and for us, it means a mix of gasoline and LNG, because all that fuel is higher than others. There has been some relief also because of the geopolitical situation where it has come down compared to the previous quarter where it was high. In same period last year, it's still up by 45%.
You can imagine that the input cost trend is a challenge, obviously needs to be managed and watched very closely. If you see the next graph, which we call the Manhattan graph, you will see that the quarter which has just got over at INR 5,542 is distinctly standing apart as the tallest tower, and you will see that on a 12-month rolling basis, like I said, it is close to 17%. On a 24-month basis, it is 21%. Also, on a quarter-by-quarter basis, you will see that we have moved upwards. From INR 4,960, coming to INR 5,542, sequentially, is a very good move. That is something that we believe is commendable.
At the same time, if we see the key financial lines, which has anyway been shared in detail with you when it was uploaded last evening, you will see, and here I repeat again, that net sales from ops grew at 16.6%. Operating profit grew at 8.5%. PBT was at 10.6%, and PAT was at 10.2%. If you see the trend that we have posted for Q1, Q2, and the last five years, you will see that profit from operations has done reasonably well. At 17%, we are better than the previous quarter. Also, at a PBT level, we are better than the previous quarter and very much comparable with four or five of the previous years. Also at a PAT, better than the previous quarter and fairly comparable with years which are there in the four or five preceding.
If you look at the first half and see how we fare, you will see that net sales for the year of YTD is at 13.1% growth. Operating profit at 10.3%, PBT at 12%, and profit after tax at 11.7%. Similarly, if we see the trend line, profit from operations for the first half at 16.2%, PBT at 16.9%, and PAT at 12.5%. Again, fairly comparable with the past four. That was the small presentation in terms of what we wanted to share with you, and we will be happy to take questions from you all. Thank you.
Thank you so much, sir. Ladies and gentlemen, we will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may please press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question comes from the line of Mihir Shah with Nomura. Please go ahead.
Hi, sir. Good morning. Thank you for taking my question. First question is actually on the raw material front. Just wanted to understand how should one think about the gross margins in this kind of a scenario, given most key raw materials are inflationary. Are there any price increases apart from the one that we see in the results of 3.5%? Have you taken any further price increases on that? So that's one on the price increases front, and how should one think about the gross margin scenario in the near coming quarters?
Okay. So morning, Mihir . Well, if you see the raw material prices, and we are in the middle of the season, you have attended other calls also. You know that the commodity inflation across most of the agri commodities is at an elevated level, and that's a fact. Like I showed, palm oil is up, and from packaging, you see packaging is up. Flour is also up sequentially against the previous quarter. Yes, it is a scenario where you are seeing a high level of inflation, and inflation is there to stay. From a pricing point of view, obviously you can see that we implemented 3.5% in the quarter which has gone by. Just let me dwell for a minute on the way we do pricing. A large part of our business, like I showed before, was at INR 5 and INR 10.
Hence, our price increase is slightly different because it takes a bit of time, because a lot of the price increase is what we call as shrinkflation. Hence, the physical operation of implementing that takes about 1.5 to 2 months, unlike many other companies in the category where you're able to take the price increase at a much faster rate because you can change the pricing online and you can do that. To your question, yes, 3.5% came through. There is more price increase activation which is in the works, and it will take the course of time that it takes to hit the market. It is going to come, and which is something that we have to do.
Understood. Got it. This 3.5% would cover what percentage of cost inflation, or maybe what kind of cost inflation are you seeing? Anything on that if you can highlight?
Obviously, the cost inflation is more than what, and this has only covered part of it. Our attempt with the subsequent increases is to close that gap.
Understood. Second question, sir, is on volume. On the volume growth trajectory, optically, if one looks at the volume growth, 13% looks like a very decent set, but it is on a base of minus 3%. On a two-year CAGR, it looks like 5%. How should one think about the volume growth trajectory from here on, especially with the GST effect? Will it have a further effect on lowering the volume growth trajectory?
Mihir, obviously volume growth of 13% is healthy, and yes, there was a base which was very low. Despite that, I think from a volume point of view, we have done well, because people have consumed 13% more grammage of biscuits across. Yes, there is going to be some reduction in grammage, which is going to happen, which might have some impact of volume going ahead. We still are quite confident that our volume growth story is moving well, which is very important in a food business.
Understood.
Mihir, just to add one more dimension.
Yeah.
Which is on the transactions. Our transactions are moving in a very healthy trajectory. Basically, it's a good combination of value, volume, and transactions. So more number of packets and more number of biscuits are going to the consumers.
Okay. Got it. Thank you. That's encouraging. Wishing you all the very best.
Thank you, Mihir.
Thank you so much. Ladies and gentlemen, in order to ensure that the management will be able to address all the questions from the participant, we request you to kindly limit your question to two questions only per participant. If you have a follow-up question, please rejoin the queue. Our next question comes from the line of Abneesh Roy with Nuvama Wealth Management. Please go ahead.
Congrats. Very good set of numbers. My first question is on competition and market share, and I am talking about real market share, not the industry market share. If I see, Malkist is very aggressive. ABC, very high advertising, and that is very expensive advertising, and generally good presence of Malkist on the mainline media. Second, Reliance, of course, very baby steps currently in biscuits. Cola, they have really disrupted the market. Do you think there is an opportunity for Reliance to do somewhat similar? I know Cola is a very different ballgame altogether. Any comment on Reliance longer-term impact on biscuits? Related question, Q3, Q4, and possibly Q1, you did suffer impact of odd pricing from competition. If you could tell us, are we now back to pre-odd pricing scenario in terms of general presence, general market share? That is my first question.
Okay. Thanks, Abneesh. Basically, you have asked two questions, and let me answer them one by one. The first, which relates to competition. Yes, Malkist has been the inventor of the category where you have the cheese or any other delicacy enclosure between two crackers, and they built a market, and they have been doing well. We responded with our product called Cheeze Dipped, which was launched earlier this year, or maybe towards December or January, and Cheeze Dipped has also done well. Obviously, we are competing with Malkist in this segment, and this is a small segment of the larger ecosystem of crackers. But yes, competition is fierce, and we also have been able to dent them, and they have also had to come back with a change strategy and have had to increase their investment.
It is a nice game which is going out in the market, but both Britannia and Malkist are there to fight it out, and that always happens in the market. As far as Reliance is concerned, we have to study what they have done. They have come with a range of products, basically very similar to all the classical products in the market, and they are starting with Tamil Nadu. Tamil Nadu is a large state for biscuits also for us, as you would know. Now, obviously, the biscuit market is a bit different from the cola market, and our early evaluation is that obviously, we are being very watchful. We have obviously already seen their products and analyzed them.
The disruption of price which happened in the cola market, as you would know, in the biscuit market, a large part of the market operates at INR 5 and INR 10. The ability to disrupt those two price points in the biscuit market is much more difficult than you can do in a cola market by discounting by INR 5 or INR 10. But that said, obviously, Reliance is a very respectable competition, and we will watch carefully, but we also have very, very strong bones and very strong plans to go ahead, and we will see how it transpires. On your second question, which was on the fractional pricing, which was in play in the market last year towards the end of Q2 and to a large extent in Q4, well, that INR 4.5 Price point has gone buried.
I think the whole industry, including competition, has migrated to the INR 5 price point and the INR 10 price point. Like I said, that migration happened somewhere towards May and June this year. That is not there in the market. The INR 4.5 is now only in the base of last year. Going ahead, we do not see anything of that sort happening in the
No, my question is slightly different. I understand odd pricing was out of the market three months back. My question was, are you able to come back to the same shelf market share? Because in FMCG, once you cede some share, getting back also does not start from day one. That was the question.
No, no, obviously. We have regained our shelf space. We have regained and done better on the shelf.
My second and last question, thank you. Second and last question, quick one. In cola, if you see almost 80%-90% of the portfolio, at least for the listed company, has become zero sugar, no sugar. In biscuit, what can be the opportunity here? Because clearly healthy snacking, people are very, very cognizant whether sugar hai ki no sugar hai. If you can tell us what is the current number, what is the difficulty here? Because that will help you to diversify the RM also.
Okay. Abneesh, if you see our NutriChoice portfolio, we have variants which are no added sugar. We have Zero, you have both biscuits, and they do very well. For example, NutriChoice Zero, which we have, is growing in very, very strong double digits, upwards of very strong double digits. As a company, we have a plan to address this opportunity. I think the key is, from a taste level, when you give no added sugar, how do you make the taste much more acceptable and palatable? I think there, Britannia has done a lot of work. In the near future, you will see more variants coming to be able to address the health platform.
Yeah, thank you. That was all. Thank you.
Thank you. Our next question comes from the line of Kunal Vora with BNP Paribas. Please go ahead.
Yeah, thanks for the opportunity. Last quarter, you talked about future platforms for healthy snacking and healthy biscuits, including likely protein products. Can you share the timelines and are you thinking about it? Also, what would it include? Would you stick to your existing categories, or would you look at a wider play beyond what you are doing?
Kunal, yes, as you would see in the strategic pillars that we shared earlier this year, one is the future platform, and the future platform includes the health-based products and protein-based products, and you will see them in due course of time. We are obviously in the process of developing that. In the interest of competition, we would not like to give the exact time when we will be able to launch them, but definitely, it is going to come, and we will come in a good way.
Okay. And second and last one.
We are not able to hear you. There is—
Am I audible?
Yes.
How is the dairy business doing? There are new dairies which are coming up that are focusing mostly on value-added products. Are you looking at having a stronger play in those areas, and what are the ingredients that will be required to succeed in that space?
Yes. If you take a look at the dairy business, obviously, one of the newer companies has done remarkably well. I think also from an entrepreneurship point of view, what they have been able to do and put the portfolio is very impressive for all of us to see, and maybe all of us also have to learn something from it. Yes, on our dairy portfolio, the way we look at it is, one is our cheese business, and the other is the non-cheese business. The cheese business is doing better, and I also showed you some colorful slices, et cetera. We are also working specifically with some large customers on the cheese business. You will also see more variations on cheese and different formats of cheese consumption that we will come out in due course of time.
Also, on the non-cheese dairy business, I think we have two strong verticals which are doing well. One is the drinks business, where we have our Winkin' Cow sub-brand, and we also have our ghee, Sattvam Ghee. Both of them have good traction, but obviously, we are looking at how to expand our non-cheese dairy business into other platforms, and there is a strategy which is being worked out along with execution, which will come in due course of time, because we want to become a bigger player in dairy with a better value-added portfolio, like you rightly said.
That is it for me. Thank you.
Thank you. Our next question comes from the line of Aditya Soman with CLSA. Please go ahead.
Yeah. Hi. Good morning. Just one question. We are seeing this pickup in general trade. The question was, is this largely just base effect, where obviously last quarter, or the base quarter last year, we had an impact because of GST, and we are seeing that reversal, or is there something more sustainable that you're seeing in this GT recovery? Thanks.
No, I think on the GT recovery, and maybe you're also referring to other organizations who have had a reasonably the whole season has come with better numbers. I will want to make three or four points with this regard. The first part is that on the base effect, yes, September last year was a transition month, and hence, many of the companies had a bit of a challenge because you were transitioning from a GST point of view, and so did Britannia. But the impact of that on the quarter result at a cumulative quarter level would not be more than, at best, 1.5%-2%. Okay? So that's a small factor. Secondly, I think the consumption in GT has shown remarkable resilience. And you've been reading it across the other results also.
Our observation also is that GT, and especially semi-urban GT and rural GT, has shown strong consumption, and we see that happening. We even see that happening in the wholesale segment, where the INR 5 price point has done actually well. I think it's commendable that with all what is so-called happening in the external world, the Indian consumer, who majority of that has GT as the source where they pick up their products, has actually done well. On top of that, I think our own GT execution, which is a combination of sales and our strategy of winning in Many Indias and the focus that we have put on the teams in the states, is also delivering more results. It's a combination of these three things which has done well.
I will request Vipin to add his point onto this, because he leads the overall sales system.
Thanks, Rakshit. I think the general trade growth currency is fairly uniform. Basically, from opportunity states to the mature states, what we see is fairly uniform growth on volume transaction as well as value. Despite the change which is happening in e-commerce, what we have also seen is that metros and the top 15 cities are also doing decent. I think rural is a very, very strong story for us, and rural we have very large business. The rural consumer, the aspiration is going up, and what we also see is a kind of premiumization happening in semi-urban and rural, which is basically giving us the tailwind. I think this is pretty much sustainable, and this should give us good results.
Thanks for that, Vipin. Rakshit, all the happy Diwali.
Thank you. Our next question comes from the line of Anshu Dayani with Macquarie Capital.
Hi, good morning. Congratulations for the great set of numbers, especially on top line. Just wanted to ask you, one of your peers had highlighted on food inflation from a forward outlook point of view. How would you see this in terms of the recent expansion, particularly in GT, and like you highlighted that you've seen this come through rural. Given inflation outlook and commentary from peers, what would your outlook on this be?
You see, the inflation is there what it is. From an outlook point of view, we would not want to make a prediction for the future. But like I am saying that we have to be careful. The Indian consumer is relevant. Biscuit also operates a lot at price points. Protecting those INR 5 and INR 10 price points insulates the biscuit business in some way, as compared to other businesses where actual price points might go down. Consumers might get a bit less, and last year with GST, they got a bit more. I think our kind of business is slightly more secured from a food inflation point of view, from that point. Obviously, we have to manage that inflation internally for us itself much better. But I think from a consumer point of view, that becomes a bit of an advantage.
But yes, like we said, food inflation is high. We showed the milk prices. We have never seen a trend whereby October milk prices will start coming down, but they keep going up. We have to watch. On top of that, you see Britannia, if you have been following us in the last many years, we have been very strong in our cost optimization programs. The level of focus and targets that the internal teams take in terms of finding out and discovering new opportunities to cut down costs, so that what we pass on to the consumer is the bare minimum, is something which obviously continues this year and will continue. Hopefully, we will have that edge against competition with respect to the discipline that the team has put in the last several years.
Thanks, Rakshit. Thank you.
Thank you.
Thank you. Our next question comes from the line of Nihal Mahesh Jham with HSBC Securities. Please go ahead.
Yes, hi team. Good morning. Am I audible?
Yes, you are.
My first question was in the e-commerce share, we have obviously touched the 7% number. I think for the full year of FY 2026, we were at 6%. Rakshit, just wanted your initial thoughts on what is the potential for this channel? Because obviously, one of the pillars you highlighted as you joined last year. I do understand that a big part of the business is five and 10, but on a total basis, how is the potential of this channel, and can this be a major growth driver? Wanted your thoughts on that.
E-commerce today is trending at 7%, and obviously, while we exit the year, we are also entering the big season. That portion will go up even more. We believe that e-commerce, also from a new consumer point of view and new moments of consumption, is an absolutely critical channel. Our own resourcing in terms of people, capability that we have invested in e-commerce has kept on improving. We also have very aggressive plans to keep expanding that. Also, like we said, that we are looking at e-commerce as an absolute business unit. We will be working on products specifically designed for this line. We believe that the capability that we have developed and the relationship that we have with our partners and customers in being able to deliver that is a competitive advantage. Britannia as an organization is extremely bullish on e-commerce.
Let me also point out that while a large part of the portfolio that we sell is at INR 5 and INR 10 price point, on e-commerce, the proportion of that is very, very small. In fact, maybe Vipin can confirm, but we hardly sell any INR 5 on e-commerce. From a proportion point of view, if you work backwards, the real universe of products that we sell on e-commerce, if you eliminate, the proportion of sale is actually far more than 7%. We would actually already be double digits. We continue to press on.
Yeah, I think, see, the other angle which is very critical from an e-commerce point of view is that it gives us a very good opportunity to premiumize. In our kind of category, which is very mature, there is a big consumer switch which is happening between the channels. But the real opportunity is that how do we sell price points which are higher? How do we sell healthy margin brands? How do we sell premium brands? I think that is going to be the big growth impetus going forward in e-commerce. Our numbers when we cut it only for Urban are in already double digits. Our market share is pretty good, and therefore it has been a fairly good story. What Rakshit spoke about is investing ahead of the curve and making sure that this becomes a strategic business unit for us and a big growth driver. Thanks.
Got that. Second question was, you commented on the bakery business saw strong performance. If I could just ask you, how is the overall adjacency business performed, and anything specific to highlight that of the four key parts, anyone which is doing better or your ballpark feedback on each of them?
If I might just interject, you talked about the adjacency business, huh?
Yes, I was asking that. Overall growth for that and how each of the parts doing.
Correct. The adjacency business, as you can see in the presentation, has grown at more than 20%, which we shared. Obviously there, croissant and cake have been star performers. Rusk as a category has grown a bit slow, but Britannia created the rusk category, but we also have plans in terms of to drive that. But specifically, the croissant category and the cake category, after a while, the cake was a bit of a slow, have really blown up. Croissant, I think we also shared in the last call, has really been a big success story, and we see a lot of opportunity in those kind of formats going ahead.
Sure. Thanks, Rakshit. Best wishes.
Thank you. Next question comes from the line of Latika Chopra with JPMorgan. Please go ahead.
Yeah. Hi. Thanks. Just two quick questions. One is a near-term one. You mentioned that more price hikes will get reflected in the P&L. Would you consider that the gross margins you delivered in this quarter were kind of bottomed out, looking at how the raw material basket looks like present for you? If you could also comment on what kind of covers you take on wheat, and we are going to get into the peak season for wheat production in a couple of months.
Yeah. Latika, I think it will be difficult for us to comment on how will the gross margin end in the future. But like you know that the raw material inflation was challenging, and maintaining gross margins were a bit of a challenge. We have taken both price hikes. We have to see how it evolves. The price hikes obviously will cover up to a certain extent, but like we see, inflation continues at the same level. Now, there are events happening. How does that portend? I am not able to comment on that, and I don't think that you will be also able to comment on that. We have to watch that out. But obviously, we are doing our best in terms of how to manage that. Your other question on covers. You see, we know that Britannia is a very efficient buyer of wheat.
I think what's more important to see is how is the next season for wheat going to be, and we have to watch that out because monsoons have been a bit challenging. But we have great expertise in managing that, and we will utilize all those skills to see. Usually, I think in most of the years, as I have also seen here, we have actually beaten the market, and we have had all the market gains. We will have to see. But like we said, the inflationary conditions on raw materials are challenging.
Sure. Thanks, Rakshit . The other question was a little medium-term. You are now closing on to be in Britannia for close to a year soon. Looking ahead, when you look at, how do you look at the shape of growth, say, for the next three years, if you have a plan? How do you view the revenue growth momentum across the core biscuit portfolio and adjacencies? If you could also give some flavor on how do you see the mix between the two changing for the company, or at least the intent-wise, if you could share some color. Thank you.
Okay. Let me try and share what I can. Yes, I will finish one year next month. We have a very strong core portfolio, and the core portfolio needs to continue to fire, and you will see more innovation coming on the core, because I think we have an opportunity to do more on that. Similarly, the development of higher margin and more agile adjacencies will continue, which will bring their own growth, which will be higher than the average growth. Then you will see portfolio diversification, and like we said in our future platform, you will see more healthier products, more products which are needed by the kind of population that we have, also products appealing to Gen Z. So you will see diversification on all those levels.
We just discussed in the previous question about channel salience, and hence our strategy to develop and fortify the e-commerce channel with both specific products portfolio addressing. So you will see that combination, you see? There is no silver bullet or one golden answer for how Britannia's growth will evolve, but you will see a much more rounded growth coming by taking advantage of these four or five opportunity segments, and obviously premiumization. I think Vipin also mentioned that premiumization is a big opportunity in e-commerce, and I think we have the opportunity to premiumize. We have very strong brands, and there are options that we are working on in terms of how people will willingly pay a bit more for something which is more premium. So the combination of all that will drive growth, and that's what we will see.
Thank you. Is it possible for you to share what is the salience of biscuits and non-biscuits in your portfolio as of FY 2026 or for FY 2027? It just will help us on an annual basis try to get a better color on how your new segments are doing.
Yes. Our biscuit thing would be close to 78%-80%, depending on how the month goes. As we go ahead, biscuits will continue growing strong. But like I said, the other portfolio will start punching above its weight.
Sure. Thank you so much.
Thank you, Latika.
Thank you. Our next question comes from the line of Priyanshu Raj with Deloitte. Please go ahead.
Hi. First of all, congratulations on the very good top-line numbers. Just wanted to check something regarding the biscuits, like they can increase commodity prices. Specifically for biscuits, what would your gross margins be looking like? Specifically the material margins. And if I have to talk about in absolute numbers, like what is your price per kg that you are able to get in the market on an overall basis for the biscuit portfolio? And similarly, if you could share some directional numbers around what is your R&TM per kg that you are able to manage so far?
Priyanshu, I think these numbers are very technical. I think there is much more joy in consuming and eating our biscuits than trying to get into these number details. What I can tell you is that wherever Britannia is, we are better than the market. We are better than the average of the market in terms of how we realize, and we are better than the market in terms of what we pay for per kilo, is how I would like to put. But I think these are a bit minute details, and I think we can probably leave it at that.
Okay. Thank you.
Thank you.
Thank you.
Thank you.
Ladies and gentlemen, that was the last question for today. I now hand the conference over to Ayush for our closing remarks. Thank you, and over to you, Ayush.
Thank you, everyone, for joining us on the call today. Looking forward to interacting with you again in the future. Thank you, and have a good day.
Thank you so much. Ladies and gentlemen, on behalf of Britannia Industries Limited, that concludes today's call. Thank you for joining us, and you may now disconnect your lines.