Patanjali Foods reported a 20.95% increase in revenue to ₹9,798.84 crores for Q2 FY26, with EBITDA at ₹603.32 crores. The company is strategically shifting towards a focused FMCG enterprise, aiming for 50% of revenue from the FMCG segment in the next few years. The FMCG segment contributed 29.44% to revenue in Q2 FY26, and the company is working on improving margins. The company crossed 1 lakh hectares (1,00,997) of land under palm oil cultivation.
Financial Performance
In Q2 FY26, Patanjali Foods’ revenue stood at approximately ₹9,798.84 crores, reflecting a year-on-year growth of 20.95%. Total EBITDA reached ₹603.32 crores, marking a year-on-year increase of 22.17% with an EBITDA margin of 6.13%. The Profit After Tax (PAT) also saw a partial increase, boosted by a tax refund from previous years.
Segment Performance
The Edible Oils segment recorded revenue of ₹6,971 crores, with a year-on-year growth of 17.17%, and branded edible oils accounted for 76% of total sales. The Oil Palm Plantation business reported quarterly revenue of ₹599.43 crores, with a margin of 24.16%. The company has expanded its area under palm oil cultivation, surpassing 1 lakh hectares. Following GST changes, nearly 85% of Patanjali’s portfolio is now in the 5% bracket. The reclassified FMCG segment contributed 29.44% of the revenue in Q2 FY26 and revenue stood at ₹2,914 crores, marking a 34.3% Q-on-Q growth. The segmental EBITDA margin stood at 12.28%.
Growth & Outlook
Patanjali Foods is strategically focused on deepening market presence, promptly addressing consumer behavior, and strengthening brand building. The company anticipates a 300 to 400 basis points increase in volumes due to GST developments, enhancing market penetration and expanding distribution reach. Over the next four years, Patanjali Foods aims to achieve a 50:50 share between edible oils and FMCG businesses, with the FMCG segment expected to drive approximately 75% of profits.
Q&A Highlights
The company aims for 8-10% growth in the food business and about 15% in the HPC (Home and Personal Care) segment. Management mentioned a commitment to natural, healthy, organic, wellness, and Ayurvedic products to gain a competitive edge. They highlighted that Q3 and Q4 typically contribute more than 60-65% of the edible oils business.
The company also disclosed that revenues in the HPC (Home and Personal Care) business reached ₹659 crores in the second quarter.
Source: BSE
