ITC vs Britannia Industries: Which FMCG Stock Should You Invest In?

India’s fast-moving consumer goods (FMCG) sector remains one of the most dynamic spaces, led by two distinct champions ITC Limited, a diversified conglomerate, and Britannia Industries, a niche FMCG leader with deep roots in bakery and dairy. As FY25 closes, both companies offer compelling but contrasting investment stories. This detailed comparison covers their financials, segment performance, profitability, valuations, and strategic expansions to help investors decide where to place their FMCG bets.

Table of Contents

1. ITC Ltd. vs Britannia: Company Profile Overview
2. ITC vs Britannia: FY25 Financial Performance Highlights
3. Segment Revenue Comparison of ITC and Britannia (FY25)
4. ITC vs Britannia: Profitability, Margins, and Return Ratios
5. Valuation Analysis: Market Cap, P/E, and Dividend Yields
6. Major Strategic Moves by ITC and Britannia in FY25
7. Stock Performance and Market Sentiment in FY25
8. ITC vs Britannia: Peer Group Financial Comparison
9. March 2025 Shareholding Pattern of ITC and Britannia
10. Final Verdict: Which FMCG Stock is Better in FY25?
11. FAQs: ITC Ltd. vs Britannia Industries

ITC Ltd. vs Britannia: Company Profile Overview

India’s FMCG sector features two distinct giants ITC Ltd. and Britannia Industries each with a unique growth strategy. While ITC has evolved from a cigarette major into a multi-sector powerhouse spanning FMCG, hotels, agri-business, and packaging, Britannia remains a focused player specialising in bakery and dairy products. With a legacy of over a century, both companies command strong brand recall in their respective categories.

• ITC Ltd. has transformed from a cigarette-centric firm into a diversified multi-sector conglomerate.
• Britannia Industries is a focused bakery and dairy specialist, with over 80% of its revenue from biscuits alone.

Wrap-up: ITC thrives on diversification while Britannia banks on niche leadership in food FMCG.

ITC vs Britannia: FY25 Financial Performance Highlights

In FY25, ITC Ltd. outpaced Britannia Industries in absolute revenue and profitability, supported by its diversified business model and cash-rich cigarette division. While ITC reported ₹75,323 Cr in revenue and ₹35,052 Cr in net profit, Britannia clocked ₹17,943 Cr and ₹2,178 Cr, respectively. However, Britannia impressed with strong capital efficiency and a higher dividend payout ratio, reflecting its shareholder-friendly stance.

Wrap-up: ITC dominates in scale and profits, while Britannia shines with efficient capital returns and consistent payouts.

Segment Revenue Comparison of ITC and Britannia (FY25)

ITC Ltd. continues to benefit from a diversified business mix, with cigarettes contributing 33% to revenue, followed by FMCG at 25% and a meaningful presence in agri-business, hotels, and paperboards. This multi-sector exposure helps the company hedge against volatility in any single segment. In contrast, Britannia derives over 80% of its revenue from biscuits alone, with dairy and bakery products contributing the balance, leaving it more exposed to fluctuations in raw material prices like wheat, milk, and oil.

ITC Ltd. Segment Revenue (FY25)

• Cigarettes: ₹26,000+ Cr (33%)
• FMCG (Non-Cigarette): ₹20,000+ Cr (25%)
• Hotels: ₹3,500 Cr (5%)
• Agri-Business: ₹13,000+ Cr (16%)
• Paperboards & Packaging: ₹8,500+ Cr (11%)

Britannia Industries Segment Revenue (FY25)

• Biscuits: ₹14,500 Cr+ (80%)
• Dairy: ₹1,800 Cr (10%)
• Bakery (Bread, Cakes, Rusk): ₹1,800 Cr (10%)

Wrap-up: ITC’s broad-based model cushions market risks, while Britannia’s niche focus makes it sensitive to commodity cost pressures.

ITC vs Britannia: Profitability, Margins, and Return Ratios

When it comes to profitability, ITC enjoys superior operating and net profit margins, driven by its high-margin cigarette business and diversified operations. In contrast, Britannia impresses with industry-leading return ratios, delivering a 52.9% ROE and 53% ROCE, reflecting its asset-light, capital-efficient model. Despite its narrower margins, Britannia’s lean structure ensures strong returns on invested capital.

Wrap-up: Britannia leads in capital efficiency, while ITC maintains consistent margin leadership through its cash-generating businesses.

Valuation Analysis: Market Cap, P/E, and Dividend Yields

ITC Ltd. commands a market cap of ₹5.2 lakh crore, comfortably ahead of Britannia’s ₹1.37 lakh crore, reflecting its scale advantage. ITC also trades at a modest 26x trailing P/E, offering better valuation comfort, especially for dividend-focused investors with a 3.39% yield. Britannia, on the other hand, commands a premium P/E of 62x — justified by its niche FMCG focus, consistent growth, and superior return metrics.

Wrap-up: ITC offers value with a generous dividend, while Britannia’s rich valuation mirrors its focused leadership in the bakery and dairy space.

Major Strategic Moves by ITC and Britannia in FY25

In FY25, ITC Ltd. doubled down on its FMCG ambitions by launching new dairy and personal care products, alongside expanding its food portfolio. The company also restructured its hotels business through a demerger to improve capital efficiency and unlock value. Meanwhile, Britannia diversified into new snacking categories like wafers and croissants, ventured into the cheese segment via a JV with Bel SA, and acquired Kenya’s Kenafric Biscuits to strengthen its international footprint.

Key Initiatives by ITC Ltd.

• Launched Aashirvaad Svasti Dairy and Sunfeast Marie Light Active.
• Expanded personal care with Savlon, Fiama, and Bingo! product lines.
• Restructured its hotel business via demerger for unlocking shareholder value.

Key Initiatives by Britannia Industries

• Entered wafers and croissants categories.
• Formed a cheese JV with France’s Bel SA for dairy growth.
• Acquired Kenafric Biscuits (Kenya) to build presence in Africa.

Wrap-up: Britannia is actively diversifying beyond biscuits, while ITC accelerates FMCG growth and optimises its business structure.

Stock Performance and Market Sentiment in FY25

During FY25, ITC Ltd. delivered an 11% stock price gain, supported by steady earnings growth and a favourable valuation. Its low volatility profile and high dividend yield made it a preferred pick for defensive investors. Britannia, while delivering an 8% gain, witnessed medium volatility as analysts remained cautious due to its elevated valuation, despite consistent operational performance.

Wrap-up: ITC’s consistent growth and valuation comfort attract positive sentiment, while Britannia’s rich multiples keep analysts cautious.

ITC vs Britannia: Peer Group Financial Comparison

Within India’s FMCG space, Britannia trades at a rich 62.4x P/E, positioned between mass-market ITC at 26x and premium Nestlé India at 75.2x. While Nestlé leads on capital efficiency with a 95.7% ROCE, Britannia holds a respectable 53%. In contrast, ITC stands out for its attractive 3.39% dividend yield, offering income stability in a defensive sector.

Wrap-up: Britannia balances between premium and mass FMCG, while ITC offers value-led dividend play.

March 2025 Shareholding Pattern of ITC and Britannia

As of March 2025, ITC remains entirely free of promoter holding, with strong institutional backing 45.2% by DIIs and 39.2% by FIIs. Britannia, on the other hand, has a concentrated ownership structure, with over 50.55% held by promoters. The public shareholding remains relatively balanced in both stocks.

Wrap-up: ITC enjoys strong institutional support, while Britannia remains tightly promoter-controlled.

Final Verdict: Which FMCG Stock is Better in FY25?

ITC Ltd. dominates on scale, dividend yield, growth optionality, and valuation comfort, making it a solid pick for diversified exposure and steady income. Britannia, however, leads with superior return ratios and brand strength in its focused categories.

Conclusion:

• Pick ITC Ltd. for diversified exposure, attractive dividend, and FMCG-led growth optionality.
• Choose Britannia Industries for focused FMCG strength, efficient returns, and loyal brand following.
• Smart investors could hold both for a balanced FMCG strategy - Britannia for niche defensiveness and ITC for scale-driven growth.

FAQs

1. Which FMCG stock is better in FY25 ITC or Britannia?
   ITC offers scale, diversification, and attractive dividends, while Britannia delivers superior return ratios. Both have distinct investor appeal.
    
2. What are their FY25 revenue and net profit figures?
   ITC reported ₹75,323 Cr in revenue and ₹35,052 Cr net profit; Britannia posted ₹17,943 Cr revenue and ₹2,178 Cr profit.
    
3. How do they compare in ROE and ROCE?
   Britannia leads with a 52.9% ROE and 53% ROCE. ITC posted 27% ROE and 37% ROCE.
    
4. Who offers better dividend yield in FY25?
   ITC leads with a 3.39% yield versus Britannia’s 1.29%.
    
5. Which company trades at a more attractive valuation?
   ITC’s P/E is 26x, while Britannia trades at a steep 62x.
    
6. How diversified are their businesses?
   ITC spans multiple sectors; Britannia is bakery and dairy-focused.
    
7. Key strategic moves in FY25?
   ITC restructured hotels and expanded FMCG, while Britannia entered cheese JV and expanded overseas.
    
8. Which stock has stronger institutional backing?
   ITC enjoys greater institutional interest than Britannia.