Food major Britannia will focus on strengthening its core categories—biscuits, cakes, rusks and bread—in FY27 through distribution expansion, portfolio innovation and premiumisation, according to its FY26 annual report.

The company will also continue investing in cost-efficiency programmes and backward integration in dairy. Accelerating go-to-market capabilities across general trade, modern trade, e-commerce and quick commerce will remain key priorities to sustain profitable growth, it said.

“While FY26 faced headwinds from geopolitical tensions in the Middle East and persistent commodity inflation, the GST rate rationalisation acted as a critical counterweight,” Britannia Chairman Nusli Wadia said in the annual report.

Wadia said consumer demand remained resilient despite inflationary pressures and geopolitical uncertainties, with consumers continuing to shift towards premium products, healthier snacking options and convenience-led purchases through e-commerce and quick commerce channels.

Britannia responded to these trends through premiumisation, localisation and health-focused product innovation. Wadia said the company would continue expanding its range of “better-for-you” products through nutrition-led, millet-based and other healthier offerings across categories, providing consumers with more wholesome and fibre-rich options.

The company reported a 6.7% year-on-year (YoY) increase in FY26 consolidated revenue to Rs 19,159.59 crore, while net profit rose 16.3% YoY to Rs 2,533.49 crore.

Biscuits and cookies—the company’s largest category, contributing more than 80% of revenue—benefited from the GST rate rationalisation in September 2025, when the tax was reduced to 5% from 18%, improving affordability for consumers.

Like most industry players, Britannia benefited from the move, although it also faced a temporary transition impact. The shift to new pack sizes and price points lasted for several months. While reducing prices on larger packs was relatively straightforward, lowering the price of Rs 5 and Rs 10 packs proved more challenging. Biscuit makers, including Britannia, increased grammage on these low-unit packs to navigate the transition, the company had disclosed during earlier earnings calls.

Britannia also said the share of e-commerce in its domestic business increased from around 2% in FY22 to 6% in FY26. Adjacent categories such as wafers and croissants grew at 2.7 times the pace of the core biscuits business.

The company continued to deepen rural distribution through rural preferred dealers and small value-pack strategies, while urban markets saw accelerated premiumisation driven by modern trade, e-commerce and quick commerce.

Britannia said its international business, which accounts for about 6% of consolidated turnover, now spans more than 80 countries through a largely distributor-led model across the Middle East, the Americas, Africa, Europe and Asia-Pacific.