Britannia Industries Limited has received a Goods and Services Tax (GST) demand order worth ₹6.37 crore from tax authorities, relating to alleged incorrect classification of goods supplied over a four-year period. The company disclosed this development through a regulatory filing under SEBI listing regulations.

GST Order Details

The Joint Commissioner of CGST & Central Excise, Thane issued the order under Section 74 of the Central Goods and Services Tax Act, 2017. The company received the order via email on March 2, 2026 at 10:14 AM IST.

Nature of Alleged Violations

The GST order covers the period from FY2020-21 to FY2023-24 and alleges non-payment of tax due to incorrect classification of goods supplied by the company. The tax authorities have quantified the total demand at ₹6.37 crore, which includes both the tax liability and penalty components, along with applicable interest charges.

Company's Response and Impact Assessment

Britannia Industries has stated that the order will have no material impact on the company's financials, operations, or other activities. The company emphasized that the order is appealable under GST law provisions.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company provided comprehensive details as required under SEBI Master Circular dated January 30, 2026, ensuring full transparency with stakeholders regarding the regulatory development.

The company has indicated its intention to take necessary actions, including exercising all available legal remedies under GST law to address the demand order through appropriate appellate channels.

Britannia Industries delivered a strong financial performance in Q3FY26, demonstrating robust growth across key metrics. The company's consolidated sales and profit figures reflect sustained momentum in both core biscuit business and adjacent categories, supported by strategic investments and product innovations.

Financial Performance Overview

The company's quarterly and nine-month results showcase consistent growth trajectory across revenue and profitability metrics:

Business Performance Drivers

According to Managing Director & Chief Executive Officer Mr. Rakshit Hargave, the consolidated revenue growth of 9.50% during the quarter, with profits growing faster at 17.10%, underscores a return to healthy growth patterns. This performance was driven by strong momentum across both the biscuits and adjacent categories, alongside a relatively stable commodity environment.

The biscuit industry continues to stabilize price points following the GST rate reduction. Despite this transition period, the business demonstrated strong recovery with approximately 12% growth in November and December 2025.

Strategic Initiatives and Product Innovation

Britannia Industries has implemented several strategic initiatives to drive growth:

• Media Investments: Sustained investments in media to strengthen brand visibility
• Product Portfolio Enhancement: Introduction of innovations such as the 50-50 Dipped range
• Market Expansion: Catering to wider consumer base with new offerings
• Product Diversification: Launch of 'Veg' cake variants and 'Doodh' Marie Gold

Investor Conference Call Details

The company conducted an investors/analysts conference call on February 11, 2026, at 11:00 A.M. (IST) to discuss the Q3FY26 financial results and operations. The audio recording of this conference call is now available for stakeholders and investors.

Future Outlook

The company remains focused on building a stronger 'Britannia' brand through elevated brand experiences and sustained investments. The strategy includes distinctive and localized product innovations designed to address diverse demographic and cultural preferences across the country. This approach aims to strengthen the company's market position while expanding its consumer reach through targeted product development.