Patanjali Foods Reports 67.4% Net Profit Surge and 21% Revenue Growth in Latest Quarter

Patanjali Foods Limited has reported a strong financial performance for its latest announced quarter. Net profit experienced a substantial surge of 67.4% year-on-year, climbing to ₹517 crore from ₹309 crore in the same period last year. This robust profit growth was underpinned by a 21% year-on-year increase in revenue from operations, which reached ₹9,344.9 crore. The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a healthy rise of 19.4%, totalling ₹552 crore, compared to ₹462 crore year-on-year. However, the EBITDA margin saw a slight dip to 5.6% from 5.7% in the prior year's corresponding quarter.

Revenue from operations for Q2FY26 was reported as ₹9,798.84 crore, showing sequential growth of 11.78% and year-on-year growth of 20.95%.

The company's newly consolidated Fast-Moving Consumer Goods (FMCG) segment, which combines Food & Other FMCG and Health and Personal Care (HPC) divisions, demonstrated impressive momentum. This segment achieved sales of ₹2,914.24 crore, marking a significant sequential growth of 34.31% and year-on-year growth of 30.09%. The core Edible Oil segment also posted healthy growth, with sequential growth of 4.33% and year-on-year growth of 17.17%.

For the first half of the fiscal year (H1FY26), revenue from operations stood at ₹18,564.86 crore, with total EBITDA at ₹937.50 crore and an EBITDA margin of 5.05%. During H1FY26, the FMCG segment contributed 27.10% to the revenue and a substantial 60.08% to EBITDA, excluding inter-segment revenues.

Patanjali Foods continues its strategic expansion in oil palm plantations, surpassing 1 lakh hectares by September 2025. The company also invests in brand visibility, allocating approximately 2% of its Q2FY26 revenue to advertising and sales promotions. Export revenues for the quarter were ₹51.69 crore, reaching 23 countries. The Wind Turbine Power Generation segment contributed ₹13.33 crore in revenue.

Product-wise, festive demand boosted sales for Dry Fruits, Spices & Condiments, contributing ₹937.68 crore. Textured Soya Products also showed quarter-on-quarter growth. The branded edible oils segment remains a primary growth driver, contributing approximately 76% of total sales.

Impact: This news demonstrates strong financial health and operational efficiency for Patanjali Foods, a key player in the Indian consumer goods sector. Positive earnings reports typically boost investor confidence and can lead to stock price appreciation, reflecting the company's growth trajectory and strategic expansion efforts. Rating: 7/10.

Difficult Terms: * **Net Profit**: The profit remaining after all expenses, taxes, and interest have been deducted from total revenue. * **Revenue from Operations**: The total income generated from the company's primary business activities. * **EBITDA**: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance before considering certain non-operating expenses. * **EBITDA Margin**: EBITDA divided by revenue, expressed as a percentage. It indicates how efficiently a company is generating profit from its core business. * **Sequential Growth**: The growth in a metric from one period to the next consecutive period (e.g., Q1 to Q2 of the same year). * **Year-on-year (YoY) growth**: The growth in a metric from a specific period in one year to the same period in the previous year (e.g., Q2 2024 compared to Q2 2023). * **FMCG**: Fast-Moving Consumer Goods. These are everyday items sold quickly at relatively low cost, such as packaged foods, toiletries, and beverages. * **HPC**: Health and Personal Care. This segment typically includes products related to hygiene, health, and beauty. * **H1FY26**: The first half of the Financial Year 2025-2026. * **Oil Palm Plantations**: Cultivation of oil palm trees, the primary source of palm oil. * **Dry Fruits, Spices & Condiments**: Food items including dried fruits, ground spices, and seasoning products. * **Textured Soya Products**: Food products made from processed soy protein designed to mimic the texture of meat.