Patanjali Foods Limited — Q3 FY26 earnings call

Call held 12 Feb 2026

Management summary

Patanjali Foods reported its highest ever quarterly revenue in Q3 FY26, driven by strong performance in the FMCG segment, particularly HPC. Despite temporary trade disruptions from GST 2.0 reforms and volatile palm oil prices impacting edible oil margins, the company expanded its distribution and maintained robust profitability in high-margin segments. Management provided optimistic long-term growth and margin targets across its business verticals.

Highlights

  • Revenue from operations for Q3 FY26 reached a highest ever of ₹10,483.71 crores, marking a 16.53% year-on-year growth.

  • The FMCG segment demonstrated robust growth of 38.93% year-on-year, with its EBITDA margin at 10.88% and contributing 66.33% to the total EBITDA in Q3 FY26.

  • The HPC category, particularly dental care, showed exceptional performance, with its EBITDA margin reaching 24.95% on revenues of ₹627.52 crores.

  • Oil Palm Plantation segment reported a healthy EBITDA margin of 22.81% on revenues of ₹416.23 crores, with plans to add 40,000 additional hectares in FY27.

  • Distribution reach significantly expanded by adding 0.2-0.25 million new retail outlets, bringing the total to over 2 million, supporting volume growth across categories.

Concerns

  • The rollout of GST 2.0 reforms led to temporary trade disruptions in September and October due to repricing actions and operational adjustments.

  • Palm oil prices declined materially by 12.6% YoY and 3.7% QoQ, and pricing pressures are expected to persist amid tightening global vegetable oil supplies.

  • The edible oil segment's EBITDA margin was 2.39%, below the targeted 2-4% range, partly due to mark-to-market accounting at quarter-end.

Key financials

  1. Revenue from Operations ₹10,483.71 Cr +16.5%YoY
  2. Total EBITDA (excl. exceptional) ₹492.06 Cr
  3. EBITDA Margin (excl. exceptional) 4.7%
  4. Profit Before Tax ₹364.54 Cr
  5. PBT Margin 3.5%

What they filed

Q1 FY27: revenue up 29.3%, net profit up 86.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue8,102 8,997 9,692 8,766 9,777 +21%10,484 +17%11,156 +15%11,337 +29%
EBITDA463 558 516 321 552 +19%435 −22%445 −14%543 +69%
Net profit309 371 359 180 517 +67%594 +60%524 +46%336 +87%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentRevenueEBITDA Margin
Edible Oil₹7,335.71 Cr2.4%
Oil Palm Plantation₹416.23 Cr22.8%
FMCG₹3,248 Cr10.9%
FMCG - Biscuits₹490 Cr9.6%
FMCG - Staples₹1,255.67 Cr—
FMCG - Ghee₹467.64 Cr—
FMCG - HPC₹627.52 Cr24.9%
FMCG - Foods (General)—7.5%

Guidance & targets

Growth

  • HPC Segment Growth Growth · fully annualized · High confidence exceed 15%
    our target clearly is that we want to exceed 15% is what we have set on the overall basis as a growth objective for HPC and on a fully annualized basis.

    — Sanjeev Asthana

  • Food Space Growth Growth · long-term · High confidence 8% to 10%
    One is that our projected long-term growth is very clear that in the food space, we will grow between 8% to 10% will be our growth rate.

    — Sanjeev Asthana

  • Vegetable Oil Business Growth Growth · High confidence 3% and 4%
    veg oil business, anywhere between 3% and 4% growth is what we target.

    — Sanjeev Asthana

Profitability

  • Food Business EBITDA Margin Profitability · long-term · High confidence 8% to 10%
    Our margin construct in the food business will be between 8% and 10% as well. That EBITDA margin, that's what we are targeting.

    — Sanjeev Asthana

  • Edible Oil Business EBITDA Stream Profitability · High confidence 2% and 4%
    the vegetable oil business, edible oil business by its very nature, our targeted EBITDA stream is between 2% and 4%.

    — Sanjeev Asthana

  • Overall Foods Category Margin Blend Profitability · High confidence 8% to 10%
    Always target that 8% to 10% is a good blend of margin between ethnic and the staple food. We should be able to generate constantly that.

    — Sanjeev Asthana

Volume Growth

  • Edible Oil Business Volume Growth Volume Growth · High confidence 3% and 4%
    The orientation in terms of the planning that is entirely done by the company is on the volume growth of between 3% and 4%.

    — Sanjeev Asthana

Capacity Expansion

  • Oil Palm Plantation Additional Hectares Capacity Expansion · FY27 · High confidence 40,000 hectares
    This year, our target is that we should do close to 40,000 additional hectares, which is a mix of 20,000 in the northeastern part of the country and 20,000 in the South India. And for that we need to prepare well in advance on getting our sprouts and nurseries and others. And we are very much on course for that. What I am saying this year is '26-27. I am talking now.

    — Sanjeev Asthana

What to watch in Q4 FY26

Volume recovery post GST 2.0 reforms

coming quarters
Current Temporary trade disruptions in Q3 FY26
Target Stronger volume recovery and stabilization

Why it matters

Indicates the effectiveness of price corrections and operational adjustments in stimulating demand and overcoming initial disruptions.

We anticipate a stronger volume recovery ahead, with the positive effects of GST rate reductions expected to become more evident in the upcoming quarters.

Risks & concerns

  • Volatile and persistent pricing pressures in edible oil

    medium

    Palm oil prices declined materially by 12.6% YoY and 3.7% QoQ, and pricing pressures are expected to persist amid tightening global vegetable oil supplies.

    Management acknowledged

  • Intense competition in the HPC segment

    medium

    Competition in the dental care market is intense, with overall market growth limited to 3-5%, requiring Patanjali to target aggressive growth rates.

    Management acknowledged

  • Temporary trade disruptions due to GST 2.0 reforms

    low

    September and October experienced temporary trade disruptions due to repricing actions, packaging updates, and operational adjustments related to GST 2.0 reforms.

    Management acknowledged

  • Quarter-on-quarter volatility in edible oil margins due to mark-to-market accounting

    low

    Performance evaluation on a quarter-on-quarter basis is challenging due to mark-to-market pricing requirements at quarter-end, which can cause fluctuations in reported margins.

    Management acknowledged

Q&A highlights

8 direct
GST pass-through strategy for biscuits, toothpaste, and hair oil Direct
To answer your question straight up, in biscuits we increased the grammage and in case of shampoo and hair oil, the price benefit was transferred through the pricing itself.

Clarifies the company's approach to passing on GST benefits, differentiating between grammage increases for biscuits and price adjustments for HPC products.

Asked by Abneesh Roy

Outlook on toothpaste industry volume growth and competitive intensity Direct
So, competition is fairly intense, that is straightforward and it's pretty much since the growth is very limited, anywhere between 3% and 5% so that continues to grow stronger. Our dental care business has done exceedingly well... our target clearly is that we want to exceed 15% is what we have set on the overall basis as a growth objective for HPC.

Provides insight into the competitive landscape of the toothpaste market and Patanjali's ambitious target to significantly outgrow the industry average.

Asked by Abneesh Roy

Sustainability of growth turnaround in foods segments and long-term growth targets Direct
One is that our projected long-term growth is very clear that in the food space, we will grow between 8% to 10% will be our growth rate. Our margin construct in the food business will be between 8% and 10% as well. That EBITDA margin, that's what we are targeting. And progressively, we continue to improve that. In the HPC business... we had targeted that we will take that 18% by 200 basis points over the next 18 months.

Offers comprehensive long-term growth and EBITDA margin guidance for the food and HPC segments, indicating management's strategic vision.

Asked by Abhishek Mathur

Future margins in the edible oil business given price trends and duty changes Direct
the vegetable oil business, edible oil business by its very nature, our targeted EBITDA stream is between 2% and 4%... I am pretty confident of not only remaining within the framework of the objectives that we defined for ourselves, but also maintaining that closer to 4% is what we target. And I am witnessing that, there's some change already quite afoot right now, as we speak as well. In the last three weeks, the prices have started moving up. So, we should gain some, all that benefit should accrue in this quarter.

Addresses concerns about edible oil profitability, reiterating the target margin band and indicating potential for margin improvement due to recent price upticks.

Asked by Abhishek Mathur

Consumer shift between palm, soya, and sunflower oils based on perceived value and price Direct
The perceived value for soya and sun is at higher level, where people see it as more premium oils and palm is lesser premium... The pecking order is very clear that sunflower is typically the highest price. The soybean is next to it and the palm is the cheapest... But consumers are largely, this price inelastic. So especially in case of sunflower, which is largely sold through the branded form, the branded players, the consumers will stay with sunflower oil, they will not switch to palm oil or soya. It is the industrial consumers typically who tend to switch.

Explains the dynamics of consumer preference and switching behavior in the edible oil market, highlighting the stickiness of branded sunflower oil consumers versus industrial users.

Asked by Shirish Pardeshi

HPC segment's contribution and distribution targets in South India Direct
If I were to look purely at the FMCG, I would say that this number would be closer to about 10%. And that has caught on the lower base that is growing at 15% to 18% now. And there we are expanding, putting a lot of energy where this base of growth we want to establish and gain momentum.

Details the company's strategic focus on expanding its FMCG presence and distribution in South India, a region currently under-indexed for the segment but showing high growth.

Asked by Shirish Pardeshi

Product innovation pipeline and strategy against new-age brand competition Direct
There is a pipeline of products that are constantly planned. And we continue to introduce new variants. SKU within the SKU itself, there's a constant mixing of new products, new SKUs, new ideas... this quarter, for example, other than what I mentioned in the call, you will see that in the biscuits category, we will have multiple premium products that will get launched now... for the HPC category, we are planning at least three more new product launches which will happen in the next 6 months... Yes, competition is there from the new age companies. And yes, they are doing a great job. And so, we will do our job and we will be found nimble. We will be found quick and we will be able to respond to any challenges.

Demonstrates the company's commitment to continuous product innovation and its proactive stance in addressing competition from new-age brands across key categories.

Asked by Priya Kulkarni

Oil palm cultivation area expansion and the nature of land tenure/cost Direct
Oil palm currently what we have is that 1,08,000 hectares... This year, our target is that we should do close to 40,000 additional hectares... So, it's for 35 years, the life cycle of the oil palm. And after when it gets closer to the trees having lived their life, then you can extend that by doing the replanting. So, there is no tenure fix for that, for the lease, because the land continues to be owned by the farmer only. And we simply work in close collaboration with the farmer and work alongside him for 35 years. So that is almost it can be seen as perpetuity because government is not asking to do anything on that. They are saying that this company is allowed to do the oil palm plantation work along with the farmers and ensure that they are able to 100% work on this.

Clarifies the significant expansion plans for oil palm cultivation in FY27 and the unique, long-term, and cost-effective collaboration model with farmers for land use.

Asked by Shagun Kabra

3 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

Patanjali Foods reported its highest-ever quarterly revenue from operations in Q3 FY26, reaching ₹10,483.71 crores, a 16.53% year-on-year increase. Total EBITDA, excluding exceptional items, stood at ₹492.06 crores with a margin of 4.69%, while Profit Before Tax (PBT) was ₹364.54 crores, translating to a 3.46% PBT margin. The company also noted a ₹30.19 crores impact from labor code implementation, classified as an exceptional item.

Operating Environment and GST 2.0 Impact

Q3 FY26 was characterized by a period of transition due to GST 2.0 reforms, causing temporary trade disruptions in September and October from repricing actions and operational adjustments. However, inventory levels stabilized by November. The company introduced higher grammage packs and revised pricing to pass on GST benefits to consumers, anticipating stronger volume recovery in coming quarters. Rural consumption continued to outperform urban demand, though urban markets are now seeing a robust rebound supported by rising disposable incomes and festive season demand.

Segmental Performance - Edible Oil

The edible oil segment recorded revenues of ₹7,335.71 crores in Q3 FY26, an 8.98% year-on-year growth, with an EBITDA margin of 2.39%. Branded oils like Ruchi Gold, Mahakosh, and Sunrich were primary growth drivers, achieving double-digit sales value growth in 9M FY26, and now account for nearly 85% of total edible oil sales. Palm oil prices declined by 12.6% YoY and 3.7% QoQ, leading to a shift in the edible oil basket towards soybean oil, which saw imports increase by 20.2%.

Segmental Performance - FMCG (Biscuits, Staples, Ghee, HPC)

The FMCG segment demonstrated strong growth, with quarterly revenue at ₹3,248 crores, up 38.93% YoY and 12.31% QoQ, and an EBITDA margin of 10.88%. This segment contributed 30.68% of Q3 revenues and 66.33% of Q3 EBITDA. Biscuits revenue grew 26.4% to ₹490 crores, with Doodh biscuits surpassing ₹1,000 crores in 9M FY26. Staples revenue surged by 68.70% to ₹1,255.67 crores. Ghee revenues increased by 46.50% YoY to ₹467.64 crores, driven by festive demand. The HPC category generated ₹627.52 crores, with dental care leading at ₹339.27 crores and an EBITDA margin of 24.95%.

Oil Palm Plantation Business Update

The oil palm plantation business reported revenues of ₹416.23 crores with an EBITDA margin of 22.81% in Q3 FY26. For the 9 months, revenue stood at ₹1,607.33 crores with an EBITDA margin of 21.60%. The area under cultivation reached 108,164 hectares, with nearly 39% in prime yield years. The company targets adding approximately 40,000 additional hectares in FY27, split between the northeastern and southern parts of India, through a perpetual collaboration model with farmers without land acquisition costs.

Product Innovation and Market Strategy

Patanjali Foods continues to focus on product innovation, introducing new variants and SKUs across categories. Recent launches include Date Almond Spread, Gond Katira, and Yellow Mustard Oil in FMCG, and new variants in shampoos, soaps, detergents, and creams in HPC. The company is intensifying efforts to strengthen distribution, adding 0.2-0.25 million new retail outlets to reach over 2 million. They are also scaling presence across modern trade, e-commerce, and quick-commerce platforms like Zepto, Big Basket, Amazon, and JioMart.

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