Patanjali Foods Limited

Patanjali Foods reported its highest-ever quarterly and half-yearly performance in Q2 FY26. The company achieved a revenue of ₹9,798.84 crores, marking a significant 20.95% year-on-year growth. EBITDA for the quarter stood at ₹603.32 crores, up 22.17% YoY, with an EBITDA margin of 6.13%. The PBT margin was 5.13%, and PAT saw a partial increase due to tax refunds from previous years. For the first half of FY26, revenue reached ₹18,564 crores, with EBITDA at ₹937.50 crores and PAT at ₹697.09 crores.

The edible oils segment generated ₹6,971 crores in revenue, growing 17.17% year-on-year, primarily driven by strong brand building and market penetration. Branded edible oils accounted for 76% of total edible oils sales. The segment's EBITDA margin was 3.53%. Despite a 7% year-on-year volume de-growth due to a spike in palm oil prices and a 3% decline in overall edible oil imports, the company expects sequential volume growth to continue.

The oil palm plantation business recorded a revenue of ₹599.43 crores with a robust margin of 24.16% in Q2 FY26. For H1 FY26, the segment reported ₹1,191 crores in revenue and an EBITDA margin of 21.17%. The company achieved a significant milestone by expanding its cultivation area to over 1 lakh hectares (1,00,997 hectares) as of September '25, with Q2 volumes increasing by 13% QoQ to 2.74 lakh tons, indicating continuous growth from maturing plantations.

Following GST changes, the company reclassified its segments, consolidating food and other FMCG/HPC into a unified FMCG segment. This segment contributed 29.44% to Q2 FY26 revenue and 27.10% to H1 FY26 revenue, with a goal to reach 50% contribution in the coming years. Q2 FMCG revenue grew 34.3% QoQ to ₹2,914 crores, achieving a segmental EBITDA margin of 12.28%. Biscuits revenue was ₹499.91 crores (up 16.47%), ghee saw a significant uptick of ₹191 crores QoQ to ₹448 crores, and HPC revenue was ₹659 crores with an EBITDA margin of 27.7%.

The FMCG sector experienced a short-term slowdown due to GST 2.0 rate revisions, as wholesalers and retailers prioritized liquidating pre-GST inventory. However, the company noted that 55% of its FMCG portfolio now falls under the 5% GST bracket, creating opportunities for stronger consumer traction. Management anticipates a 300 to 400 basis points increase in volumes over the coming months due to GST reform and expects urban demand to strengthen after early signs of recovery in late September.

Despite a 35% YoY and 20% QoQ increase in palm oil prices, Patanjali Foods implemented de-risking strategies including hedging, inventory management, and passing on price increases to consumers, particularly in edible oils. The company is also investing heavily in cost efficiency through technology, including SAP HANA implementation and the use of AI/ML for inventory management, and renewable energy to cut costs. These efforts aim to maintain margins and achieve cost leadership.

The company's gross debt increased by ₹2,108 crores compared to March '25. This increase was primarily attributed to the development of working capital loans, including ₹1,376 crores for working capital, ₹367 crores from buyer's credit from SBI London, and ₹360 crores from unsecured working capital loans. These borrowings were sourced from banks to support working capital facilities, both fund-based and non-fund-based.