Patanjali Foods Limited has received show cause notices from the Office of the Deputy Commissioner (S.I.B./Enforcement), State Tax Department, Uttarakhand, demanding a total tax of Rs 4,07,16,282 along with a penalty aggregating to Rs 72,55,70,769. The notices, dated May 30, 2026, allege the availing of ineligible Input Tax Credit (ITC) and other discrepancies for the financial year 2022-23 under the provisions of applicable GST laws.

The authority has issued the demand under Section 74(1) read with Section 50 and 122 of the Uttarakhand Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017. The total tax demand comprises Rs 1,14,32,784 each in SGST and CGST, and Rs 1,78,50,714 in IGST, plus applicable interest.

Company Response and Financial Impact

Patanjali Foods stated that it is currently in the process of submitting appropriate responses in consultation with its tax advisors. The management believes it has adequate grounds to substantiate its position and intends to file an appropriate response before the relevant authority within the prescribed timelines.

As of now, the company does not expect any financial liability arising from these notices. However, it noted that the exact financial implications cannot be determined until the completion of the proceedings.

Breakdown of Demand

The disclosure was made to the exchanges in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Patanjali Foods reported a robust financial performance for the year ended March 31, 2026 (FY26), with net profit rising 39.5% year-on-year to Rs 1,814.47 crore. The company achieved its highest-ever annual revenue from operations, which grew 19% to Rs 40,169.58 crore, driven by strong performance in both its Edible Oils and FMCG segments. For the quarter ended March 31, 2026 (Q4FY26), net profit increased 46.2% to Rs 524.02 crore, while revenue from operations climbed 17.3% to Rs 11,155.60 crore.

Board Approves Audited Results and Dividend

The Board of Directors, in its meeting held on May 30, 2026, approved the audited standalone and consolidated financial results for FY26. M/s Walker Chandiok & Co LLP, Statutory Auditors, issued an audit report with an unmodified opinion. Subsequent to the year-end, the Board declared a second interim dividend of Rs 1.75 per equity share of Rs 2 each for FY26, with the record date fixed as April 25, 2026. This brings the total dividend declared for the fiscal year to Rs 3.50 per share.

Operational Performance and Segment Highlights

The Edible Oils segment reported annual revenue of Rs 29,313.54 crore, growing 18.4% YoY, while the FMCG segment recorded revenue of Rs 11,188.25 crore, a 19.95% increase. The FMCG segment contributed 27.6% to total revenue and 61.1% to EBITDA (excluding unallocable income) for the year. In Q4FY26, the Edible Oils segment revenue grew 23.3% YoY to Rs 8,324.11 crore, and the FMCG segment revenue rose 13.8% YoY to Rs 2,890.46 crore.

Exceptional Items and Margins

The company recognised an exceptional item of Rs 168.81 crore during the year, primarily comprising an impairment provision of Rs 168.81 crore for idle and non-operational building, plant, and equipment. Excluding exceptional items, the EBITDA for FY26 stood at Rs 1,931.52 crore, with a margin of 4.79%. For Q4FY26, EBITDA before exceptional items was Rs 501.96 crore, translating to a margin of 4.48%.

Key Financial Metrics for FY26