Britannia Industries (NSE:BRITANNIA) Q2 2026 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Britannia Industries Limited Q2 and FY 'twenty seven 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 question after the presentation concludes. 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 twenty twenty six-twenty seven. Joining us today on this earnings call is our Managing Director and CEO, Mr. Akshit Alkawi Deputy Managing Director, Mr. N. Venkatraman Chief Financial Officer, Mr. Ramamurthy Jayaraman chief commercial officer, sales and replenishment, mister Bipin Kataria and chief manufacturing and procurement officer, mister Manoj Pali.

1:08 The analyst deck is uploaded on our website. Before I pass it on to mister Raksha Sarkawai, I would like to draw your attention to the safe harbor statement in the presentation. Over to mister with remarks on the performance. So good morning, everybody. And the team at Britannia here is happy to present the the quarter two. The tech is uploaded for all of you. I will go through the tech, and post that, we can engage in the q and a session. So 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 of financials.

2:04 So if we go to the first slide, which is our performance scorecard for Q2 twenty six, twenty seven, you will see that we've had a decent quarter. The revenue from operations was at $55.42 gross. On a twelve month basis, it grew by 16.6%. And over q one twenty seven sequentially, by 11.6%. And PAT for q two twenty seven was at 13% of revenue. On a twelve month growth, it was plus 10.2 versus q one, it was at 21.9%. So reasonably, we can help you now.

2:50 And if we break that and look at the first quarter on a YTD September basis, so here you will see that the revenue from operations for the first time crossed 10,000 growth in the first half. So we were at 10,506 growth. The twelve month growth approximating to 13.1%. And at a PAT level, the h one was at 12 and a half percent of revenue, while on a twelve month period, it was about 11.7%. We continue to update and share the same strategic priority, which we had defined earlier this year. So the first pillar being how do we keep building efficiency in sales, distribution, and supply chain.

3:39 Second was on elevating brand experiences and investments. Third was driving innovation made different view of future platform. Fourth one was the winning in many years, and the fifth one was on sustainability. So I will delve into that. But to begin with, if you see how we grew across all channels, which is 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. So you will see that from q two twenty six onwards and going ahead, the line is moving upwards to the right. You will see that our GT growth in q two twenty seven is 2.6 that of the full year FY 2526.

4:30 So, obviously, there is some acceleration in GT, which is welcome because GT is the largest part of our business. And if you see, for example, ecommerce, and we're very happy to say that ecommerce is now trending at close to 7% of our overall content. And 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, talked about our key states. So our key states are our so called heavyweight states, which contribute in terms of larger revenues and larger profits.

5:23 And here, we see that our key states are also pulling up much better than the earlier year, while the other states where maybe the agility or opportunity to grow is more continue to be faster than our key states. And the good part is both of them are again trending positive. Also sharing something interesting, which we did across the board. So, you know, you will see that our NutriChoice portfolio, you know, is invested a lot in bringing forth the whole range in front of the consumer. So while you get choice is the leader in the healthy biscuit segment, and he's also the leader of this. The spread of offering that we have was something that we talked about. And then, obviously, you know, interesting marketing with with our marquee brand, middle hearts, where you can see the, you know, poking heart emoji. Just sharing this for you.

6:28 And, also, something interesting that we did in cheese where we introduced a good range of flavored slices of Korean chili cheese, I will really encourage all of you to perfect taste because it's it's a good product, and it's doing very well across the shelf, although it's been only launched about a month and a half. Our adjacency business also grew much faster. So you can see that the agency bakery business overall grew at more than 20%. And this obviously includes brownie. It includes our... It includes what we call is, you know, a group of higher growth products. Us. And if you take a look at our daily business also, is shrinking very well. And also our milk drink did well. So the agency business also performed better than what it has done in the past.

7:25 Our international business also, you know, after the challenges which we had in the last quarter because of the war happening in the region because Middle East is a large part of our business to recover. And both, you know, the sum total of our Middle East Africa business, the rest of international grew 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 across the region. Some interesting campaigns. So all of you who are based in Mumbai would have seen the promotion with Bourbon Bourbon Bourbon Bourbon Bourbon, which, you know, sold out very fast.

8:14 And also in Kerala, you know, where cheese dipped as a category is very large, including from our competition. You know, how do you activate the brand along with? On ESG, we are consistent. We continue to build a profitable business but with responsibility. So the number of women in the factory is at 45%. The nutrition foundation, the Britannia Nutrition Foundation, which does a very dedicated work across numerous locations, you know, reached close to 5.73 lakh beneficiaries in the first half of the year. And the renewal at least share in our own plants at 48%. Although you would know that there is a capping applied by the government in most of the states in terms of, you know, how much renewable electricity you can use.

9:08 So at 48%, I think we are trying to optimize to the best of what we can. If I run through the costs and financials line, 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. So wheat flour sequentially versus Q1 had a spike at plus 9%. Although if you compare against the previous year in the same period, it's marginally down. But refined palm oil over Q1 was up by 11% sequentially and over last year was up by 17%. And refined palm oil is affected both by crude prices, but also by, you know, the some shortage of rainfall, which is there across the producing markets also because of some material, you know, conditions.

10:06 Sugar. Sugar is up versus Q1 by 4% and over last year by 6%. And we also know that sugar went through a very stormy period during the course of the quarter. And although it has kind of corrected, but obviously, it has it has still remained at a very elevated level. One of the other commodities, you know, which is high and high by a significant margin is milk. So 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. And as you know, across industry, most of the large daily companies are also making price increases to offset this.

10:58 So it's a challenging period for milk. Laminate is actually one of the more challenging areas for the industry and also for us because laminate prices have shot up. So over the previous quarter, it is up by 7%, is a which is a large increase. And over last year, it is up by 18%. So we have to watch that very carefully because laminate is... You know, the product is covered with it. And on fuels, for us, it means a mix of, you know, gases and LNG because all that fuel files are available. So 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.

11:44 But against the same period last year, it is still up by 45%. So you can imagine that the input cost trending is easily the challenge of speed needs to be managed and watched very quickly. If you see the next graph, you know, which we call the Manhattan graph, you will see that the quarter which has just got over at 5542 is distinctively standing apart as the tallest tower. And you will see that on a twelve month growth basis, like I said, it's close to 17%. On a twenty four month basis, it's 21%. Also, on a quarter by quarter basis, you will see that we have moved upwards. So from four nine six moving to five five four two sequentially is a is a is a very good movement. And that's something that we are quite...

12:40 We believe is commendable. At the same time, if we see the key financial line, which has been even been shared in detail with you when it was uploaded last week, you will see... And here, I repeat again that net sales from ops grew at 16.6%. Operating profit was at 8.5% growth. PBT was at 10.6%, and PAT was at 10.2%. And if you see the trend that we have posted for Q1, Q2 in the last five years, you will see the profit from operations has done reasonably well. So 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.

13:31 And also at a PAT level, so better than the previous quarter and fairly comparable with the years which are there in the four or five. If you look at the first half and see how we fare, you will see that net sales for the year of ITT is at 13.1% growth. Operating profit at 10.3%, PBT at 12% and profit after tax at 11.7. And similarly, if we see the trend line, So profit from operations for the first half at 16.2%, PBT at 16.9, and PAT at 12.5.

14:17 Again, comparable with the past four. So 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 touch tone telephone. If you wish to remove yourself from the question queue, you may please press star and 2. Participants are request to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles.

15:12 First question comes from the line of Maher Shah with Nomura. Please go ahead. Hi, Good morning. Thank you for taking my question. So first question is actually on the raw material front. Just wanted to understand how should we think about the gross margins in this kind of a scenario given most key raw materials are intentionally? Are there any price increases apart from the one that we see in the results of three and a half percent? Have you taken any further price increases on that? So so that... So so that's what on the price increases front end. How should one think about the gross margin scenario in the near coming quarters? So well, if you see the raw material prices and we are in the middle of the season, so you have attended other calls also.

16:07 So you know that the commodity inflation across most of the agri commodities is at an elevated level. And that's a fact. So like I showed palm oil is up. And amongst you see from packaging, you see packaging is up. Flour is also up sequentially against the previous quarter. So 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. And just let me dwell for a minute on the way we do pricing. So, you know, a large part of our business, like I told before, works at rupees 5 and rupee 10. And, hence, our price increase is slightly different because it takes a bit of time because a lot of the price increase is what you call as inflation.

17:06 And hence, the physical operation of implementing that takes about one and a half to two months. Unlike many other companies and catch these 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. So to your question, yes, three and a half percent came this year. There is more price increase activation, which is in the works, and it will with the due course of time that it takes to hit the market. So it is going to come and... Which is something that we have to do. Understood. Got it. Got it. Got it. This 3.5% would cover what percentage of cost inflation?

17:53 And or maybe what kind of cost inflation are you seeing? Anything on that, if you can just highlight? So obviously, the cost inflation is more than what, and this has only covered part of it. And our attempt with the subsequent increases is to close that gap. Understood. Understood. Got it. Second question, sir, is on the volume growth trajectory. Optically, if one looks at the volume growth, 13% looks like a very decent set, but it's on a base of minus 3%. So on a two year CAGR, it looks like 5%. How should one think about volume growth trajectory from here on, especially with the, know, significant effect? Will it have a further effect on lowering the volume growth trajectory?

18:42 So Mihir, so obviously, growth at 13% is healthy. And yes, there was a base which was very low. But I think despite that, I think from a volume point of view, we have done well because, you know, people have consumed 13% more gram age of biscuits across. Yes. There is going to be some reduction in gram age, which is going to happen, so which might have some impact of volume going ahead. But we still are quite confident that our volume growth story is moving well and which is very important in a, you know, in a food business. Understood. On this side. So maybe just to add one more dimension, which is on the transactions. So our transactions are moving in a very, healthy trajectory.

19:33 So, 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. Okay. Got it. Thank you. That's encouraging. Wishing you all the best. Thank you, man. 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 question only per participant. If you have a follow-up question, please rejoin the queue. Our next question comes from the line of Abnish Roy with Nuwama Wealth Management. Please go ahead. Congrats, very good set of numbers. My first question is on competition and market share. And I'm talking about real market share, not the industry market share. If I see, Malqvist is very aggressive. So with KBC, very high advertising, and that is very expensive advertising and generally good presence of Malchist on the mainline media.

20:36 Second, Reliance, of course, very baby steps currently in Biscuit. Polar, 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. So if you could tell us, are we now back to pre odd pricing scenario in terms of general presence, general market share? So that is my first question. Okay. So thanks, Abhish. So basically, have asked two questions. Let me answer them one by one.

21:21 So the first, which relates to competition. So, yes, Malchist, you know, has been the inventor of the category where you have the cheese or any other delicacy enclosure between two crackers. And they built the market, and they have been doing well. We responded with our product called Cheese Dip, which was launched earlier this year or maybe towards December or January. And Cheese Dip has also done well. Obviously, we are competing with Malchist 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've also had to come back with a change strategy and have had to increase their investment.

22:11 So it's a nice game which is going out in the market, but both Britannia and markets are there to fight it out. That always happens in the market. As far as Reliance is concerned, you know, we have to study what they have done. So 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.

22:57 Their 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. So 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 rupees 5 or rupees 10. But that said, obviously, Reliance is a very respectable competition, and we will watch carefully. But we also have very, very strong boards and very strong plans to go ahead, and we will see what it 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 4.5 price point has got buried.

23:56 I think the whole industry, including competition, has migrated to the five price point and the 10 price point. And like I said, that migration happened somewhere towards May and June this year. So that is not there in the market. So the 4.5 is now only in the base of last year. So going ahead, we don't see anything of that sort happening in the current So my question is slightly different. 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 seek some share, getting back also doesn't start from day one.

24:42 So that was the question. No. No. No. Obviously, we have regained our shelf space. We have regained and, you know, done better on the shelf. Obviously... So my second and last question. Thank you. Second and last question, quick one. So in Cola, if we see almost 80% to 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, sugar. 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. So, Abhish, so, obviously, if you see our Nutichoice portfolio, you know, we have a variance which are no added sugar. So we have zero, you have what we get, and they do very well. For example, Nutichoice zero, which we have, is growing in very, very strong double digits, upwards of, you know, very strong double digits.

25:42 So, obviously, as a company, we have a plan to address this opportunity. I think the key is, you know, from a taste level, when you give no added sugar, how do you make the taste much more acceptable and palatable? And I think there, Britannia has done a lot of work. So in the near future, you will see more variants coming to be able to address the health platform. Sure. Thank you. That's all from me. Thank you. Thank you. Our next question comes from the line of Kunal Bora with BNP Paribas. Please go ahead. Yeah. Thanks for the opportunity. Last quarter, you talked about future platforms for healthy snacking and healthy biscuits and including, like, protein products. Can you share the time lines and are you thinking about it?

26:31 Also, would it include? Would you stick to your existing categories? Or would you look at a wider play beyond what you're doing? So, 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. You know, 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. K. Okay? K. Okay? Yeah. Second and last last one How is it? Yeah.

27:21 We are not able to hear you. There is Am I audible? Yeah. How is the dairy business doing? And there are day... New dairy 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. So, you know, if you take a look at the dairy business, obviously, one of the newer companies has done remarkably well. And I think also from a... 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. So, yes, on our daily portfolio, the way we look at it is one is our cheese business and the other is the non cheese business.

28:09 So the cheese business is doing better. And I also showed you some colorful slices, etcetera. 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 noncheese dairy business, I think we have two strong verticals, which are doing well. One is the drinks business where we have our winking cow sub brand. And we also have our ghee, Satwang 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 more bigger player in dairy with a better value added portfolio.

29:04 So like you rightly said. Our next question comes from the line of Ajith Souman with CLSA. Yes. Hi. Good morning. So just one question. We are seeing this pickup in general trade. So the question was, is this largely just base effect where, obviously, last quarter the base quarter last year, 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? So, no, I think on the GT recovery, and maybe you're also referring to other organizations who have had a reasonably... You know, the whole season has come with better numbers.

29:57 So 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 know, 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, one and a half to 2%. Okay? So that's a 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. And our observation also is that GT and especially semi urban GT and rural GT has shown strong consumption, and we say that... We see that happening.

30:55 We even see that happening in the wholesale segment where, you know, the the 5 rupee price point has done actually well. So I think it's commendable that with all what is so called happening in the external world, the Indian consumer who majority of that, you know, 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 of the states is also delivering more results. So it's a combination of these three things, which has done well. And maybe I'll request to add his point onto this because he leads the overall sales system.

31:45 Thanks,. So I think the general trade growth y and c is fairly uniform. So, 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 com, what we've 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 are a very large business. So 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. So I think this is pretty much sustainable, and this should give us good results.

32:43 Thank you for that. I appreciate you all a happy Diwali. Thank you. Our next question comes from the line of Anshu Dayani with Macquarie Capital. Congratulations for a great set of numbers, especially on top line. So just wanted to ask you, one of your peers had highlighted on food inflation for from a forward outlook point of view. So how would you see this in terms of, you know, the recent expansion, particularly in GT? And like you highlighted that you've seen this come through rural. So given inflation outlook and commentary from peers, what would your outlook on this be?

33:32 So you see, the inflation is there, what it is. And from an outlook point of view, we would not want to make a prediction for the future. But like I'm saying that we have to be careful. The Indian consumer is relevant. Biscuit also operates a lot at price points. So protecting those 5 and 10 rupee price points insulates the biscuit business in some way as compared to other businesses where actual price points might go down. So consumers might get a bit less. And last year with GST, they got a bit more. So 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 our people 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.

34:27 You know, we we showed the milk prices. We have never seen a trend where, you know, by October, milk prices usually start coming down, they keep going up. So 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. And 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 cut it. So, hopefully, we will have that edge against competition with respect to the discipline that the team has put through in the last several years.

35:23 Thanks, Ashish. Thank you. Thank you. You. Our next question comes from the line of Nihal Mahesh Shyam with HSBC Securities. Please go ahead. Yes. Hi, team. Good morning. Am I audible? Yes. You are. My first question was on the ecommerce share. We've obviously touched a 7% number. I think for the full year of FY twenty six, we were at 6%. So, actually, just wanted your initial thoughts on, you know, what is the potential for this channel? It was 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 ten, but on a total basis, how is the potential of this channel? And can this be a major growth driver? What are your thoughts on that?

36:15 Ecom today is trending at 7%. And, obviously, while we exit the year, you know, 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. So our own resourcing in terms of people capability that we have invested in ecommerce has kept on improving, and we also have very aggressive plans to keep expanding that. Also, like we said, that we are looking at e com as an absolute business unit. We will be working on products specifically designed for this line. And 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.

37:09 So Britannia as an organization is extremely bullish on ecommerce. Let me also point out that while a large part of the portfolio that we sell is at 5 and 10 rupee price point, but on ecommerce, the proportion of that is very, very In fact, maybe we can confirm, but we hardly sell any 5 rupee on ecommerce. So from a proportion point of view, if you work backwards, the real universe of products that we sell on ecommerce, if you eliminate, the proportion of sale is actually far more than 7%. So we would actually already be in double digits. So... And and we continue to press on that. Yeah. I think, see, the other angle, which is very critical from an ecom point of view, is that it gives us a very good opportunity to premiumize.

38:02 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 competitors going forward in e com. Our numbers, when we cut it only for Arman, are in already double digit. Our market share is pretty good, and therefore it's been a fairly good story. And what Prakshit spoke about is, you know, investing ahead of the curve and making sure that this becomes a strategic business unit for us and a big growth driver. Thanks.

38:50 Got that. Second question was, you know, you commented on the weekly business, so a strong performance. If I could just ask you, how is the overall adjacency perform... Business performed? Anything specific to highlight that of the four key parts, anyone which is doing better, or were your ballpark feedback on each of them? So if I might just interject, you talked about the agency business. Yes. I was asking about the overall growth for that and how are each of the parts doing. Correct. So, you know, the adjacency business, as you can see in the presentation, has grown at more than 20%, which we shared. And obviously, there, Croza and Cake have been star performers.

39:36 Rusk as a category has grown a bit slow, but we Britannia created the Rusk category, but we also have plans in terms of to drive that. But specifically, the crozar category and the cake category, after a while, the cake was a bit more slow, have have really blown up. And Croza, 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, Ashish. Best wishes. Thank you. Next question comes from the line of Latika Chopra with JPMorgan. Please go ahead. Yes. Hi. Thanks.

40:23 Just two quick questions. One is a near term one. You mentioned that more price hikes will get reflected in the P and L. Would you consider that the gross margins you delivered in this quarter were kind of bottomed out, you know, looking at how the raw material basket looks like present for you? And if you could also comment on what kind of covers, you know, you take on wheat, you know, and we're going to get into the peak season for wheat wheat production in couple of months. Yep. So, Latika, you know, I I think it'll 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. And we have taken more price hikes.

41:12 We have to see how it evolves. So the price hikes, obviously, will cover up to a certain extent, but, we see inflation continues at the same level. Now there are events happening. How does that portend? You know? I am not able to comment on that, and I don't think that you will be also able to comment on that. So 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, so 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, you know, we have great expertise in managing that, and we will utilize all those skills to see.

41:58 Usually, I think in most of the years, as I have also seen here, we have actually beaten the market and, you know, we have had all the mark to market gain. So we'll have to see. But like we said, the inflationary conditions on raw materials are are challenging. Sure. Thanks, Akshay. And 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? You know, how should... Would you... How would you view the revenue growth momentum across the core biscuit portfolio and adjacencies? And if you could also give some flavor on how do you see the mix between the two, you know, changing for the company or at least the intent wise, if you could share some color. Thank you.

42:49 Okay. So let me try and share what I can. Yes. I will finish one year next month. So 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. And then you will see portfolio diversification. And like we said in our future platforms, you will see more healthier products or products, you know, 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. And we just discussed in the previous question about channel failure.

43:48 And hence, our strategy to develop and fortify the ecommerce channel with both specific products fully addressing. So you 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 we've been also mentioned that premiumization is a big opportunity in ecommerce. 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 and that's what we will see.

44:39 Thank you. Is it possible for you to share what is the salience of biscuits and non biscuits in your portfolio as of FY twenty six or first half FY twenty seven? It just will help us, you know, on annual basis, try to get a better color on, you know, how are your newer segments doing. Yeah. So, you know, our biscuit thing would be close to 78 to 80% depending on how the month goes. And as we go ahead, you know, biscuits will continue growing strong. But like I said, the other portfolio will start punching over its weight. Sure. Thank you so much, and all the debt. Thank you, Ratika. Thank you. Our next question comes from the line of Priyanshu Raj with Deloitte. Please go ahead.

45:30 Hi. First of all, very congratulations on the very good top line numbers. I just wanted to check something regarding the business, you know, like, the intense increase commodity prices. Specifically for business, what would your gross margins be looking like? And specifically the material margin. And if I have to talk about an absolute number, like, what is your price per kg that you are, like, able to get in the market on an overall basis for the business portfolio? And similarly, if you could share some directional numbers around what is your RMPM per kg that you are able to manage so far? Okay, Priyansh. I think these numbers are very technical. I think there is much more joy in consumer... In consuming and eating our biscuits than trying to get into these number details.

46:17 So what I can tell you is that wherever Britannia is, we are better than the market. You know, 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 we'd like to put. But, you know, I think these are a bit minute details, and I think we can we can probably leave... Probably leave it at that. Okay. Thank you. Thanks. You. Ladies and gentlemen, that was the last question for today. I now hand the conference over to Ayush for closing remarks. Thank you, and over to you, Ayush.

47:03 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. 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. Thank you.