Patanjali Foods Q1FY27 profit up 87% to ₹3.36 billion on margin expansion

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Reviewed by
Ashish TScanX News Team
Key Highlights
  • Net profit rose 87% YoY to ₹3.36 billion; revenue grew 27% to ₹113.4 billion
  • Edible oil segment hit record quarterly revenue of ₹8,505 crore with 5.22% EBITDA margin
  • Biscuits revenue grew 27% to ₹560 crore with EBITDA margin expanding to 15.35%
  • HPC business acquired for ₹1,100 crore has repaid acquisition cost within 18 months
  • Full-year guidance: Food/FMCG growth 8-10%, HPC growth ~15%
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Patanjali Foods Limited raised prices of edible oils in a planned manner, the company disclosed during its concall. The update came alongside the company's Q1FY27 results, which showed net profit climbing 87% year-on-year to ₹3.36 billion and revenue rising 27% to ₹113.4 billion. The financial results were filed with stock exchanges on August 18, 2026, covering the quarter ended June 30, 2026.

Q1FY27 financial performance

Patanjali Foods delivered strong financial results for Q1FY27, with growth across all key metrics. The table below summarises the company's consolidated performance compared to Q1FY26:

Metric Q1FY27 Q1FY26 Change
Net profit ₹3.36 billion ₹1.8 billion +87%
Revenue ₹113.4 billion ₹88.99 billion +27%
EBITDA ₹5.43 billion ₹3.2 billion +70%
EBITDA margin 4.79% 3.61% +118 bps

Segmental breakdown

The earnings call transcript provided detailed segmental insights for the quarter. The edible oil segment delivered quarterly revenue of ₹8,505 crore, marking the highest-ever quarterly revenue, led primarily by mustard oil. Quarterly EBITDA margin for this segment came in at 5.22%. On the oil palm plantation front, the company generated highest-ever quarterly revenue of ₹740 crore, growing 25% year-on-year.

The FMCG segment recorded quarterly revenue of ₹2,938 crore with an EBITDA of ₹190 crore and an EBITDA margin of 6.45%. Within this segment, biscuits generated revenue of ₹560 crore, registering year-on-year growth of 27%, with an EBITDA margin of 15.35% versus 9.35% in the same period last year. Home and Personal Care (HPC) delivered a strong performance with total revenue of ₹629 crore. Dental care generated revenues of ₹325 crore, followed by skin care at ₹165 crore.

The consumer staples segment stood at more than ₹1,000 crore. Textured soya products (TSP) recorded revenue of ₹160 crore, growing 14% year-on-year and 50% quarter-on-quarter, with an EBITDA margin of over 18%. Beverages generated revenue of ₹38 crore, while ghee sales were softer at ₹219 crore due to seasonal demand and geopolitical disruptions in export markets. Other food categories collectively generated revenues of ₹203 crore, and nutraceuticals stood at ₹18 crore.

What the numbers show

The simultaneous growth in revenue and EBITDA margin indicates improved operating leverage. While revenue increased 27%, EBITDA grew approximately 70%, suggesting that cost efficiencies or favorable input prices contributed significantly to bottom-line expansion beyond topline growth alone. The planned edible oil price increases disclosed during the concall add further context to the company's margin trajectory. Management noted that commodity price inflation from delayed monsoons and geopolitical factors acted as a net positive for edible oils due to long positions, offsetting input cost pressures in FMCG.

Operational updates and guidance

Management reaffirmed full-year guidance, projecting edible oil margin construct between 3% to 5%, food and FMCG growth at 8% to 10%, and beauty and personal care growth at around 15%. FMCG vertical EBITDA growth is guided at 12% to 15% for the year. Volume growth across the foods segment was reported at 5%, with pricing inflation contributing approximately 12%.

Regarding the acquisition of Patanjali Ayurved's Home and Personal Care business, management clarified that it was acquired on a slump sale basis for ₹1,100 crore in November 2024. The business had generated almost ₹600 crore of EBITDA in the previous year. Management stated that the acquisition has already repaid its cost within 18 months and built up assets substantially, describing it as nearly "free" to the listed entity relative to its profitability.

Earnings call details

The disclosure was made pursuant to Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The earnings call was scheduled for Monday, August 17, 2026, at 9:30 am IST. The company emphasized that no price-sensitive information or forward-looking statements would be disclosed during the session.

Key participants

Senior leadership from Patanjali Foods addressed queries during the call. The confirmed participants included:

  • Sanjeev Asthana, Chief Executive Officer
  • Kumar Rajesh, Chief Financial Officer
  • Priyendu Jha, Investor Relations

The company secretary, Ramji Lal Gupta, signed the intimation letter dated August 12, 2026. Strategic Growth Advisors Pvt. Ltd., represented by Shikha Puri and Stuti Shah, managed the RSVP process.

Historical Stock Returns for Patanjali Foods

1 Day5 Days1 Month6 Months1 Year5 Years
-0.12%-1.65%-5.91%-31.88%-43.43%-2.63%

How might the planned edible oil price increases impact consumer volume growth and market share against competitors in the coming quarters?

Given the reliance on long commodity positions for margin expansion, what is the company's hedging strategy to mitigate risks from potential geopolitical shifts or monsoon recovery?

Will the integration of the Patanjali Ayurved HPC business continue to drive double-digit growth, and are there plans for further acquisitions in the personal care segment?

Patanjali Foods declares ₹1.50 interim dividend per share for FY26

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Reviewed by
Anirudha BScanX News Team
Key Highlights

Patanjali Foods Limited announced a third interim dividend of ₹1.50 per share for FY26 and a first interim dividend of ₹0.80 per share for FY27. The total interim payout for FY26 reaches ₹3.50 per share. The record date for eligibility is August 21, 2026, with specific TDS guidelines outlined for resident and non-resident shareholders.

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Patanjali Foods declared a third interim dividend of ₹1.50 per equity share for the financial year ended March 31, 2026 (FY26) and a first interim dividend of ₹0.80 per equity share for the current financial year (FY27). The Board of Directors approved the payouts during its meeting held on August 14, 2026.

Shareholders registered as beneficial owners in the Depositories or as members in the Register of Members as on close of business on Friday, August 21, 2026, will be eligible to receive the dividends. The face value of each equity share is ₹2.

Dividend History and Payout Structure

For FY26, this declaration follows previous interim payouts. The company had already paid a first interim dividend of ₹1.75 per share and a second interim dividend of ₹1.75 per share during the financial year. Including the newly declared amount, the total interim dividend for FY26 stands at ₹3.50 per share.

Dividend Component Amount Per Share Fiscal Year
First Interim Dividend ₹1.75 FY26
Second Interim Dividend ₹1.75 FY26
Third Interim Dividend ₹1.50 FY26
First Interim Dividend ₹0.80 FY27

Tax Deduction at Source Guidelines

Under the Income-tax Act, dividends are taxable in the hands of shareholders. Patanjali Foods will withhold tax at prescribed rates based on residential status and applicable exemptions.

Resident Shareholders

For resident individuals, tax will be deducted at source at 10% unless exempt. No tax deduction applies if the aggregate dividend paid during FY26-27 does not exceed ₹10,000. Shareholders must provide a valid Permanent Account Number (PAN); failure to do so results in a higher deduction rate of 20%. Resident non-individuals, including insurance companies and mutual funds, may claim exemption by submitting specific documentary evidence and self-declarations.

Non-Resident Shareholders

For non-resident shareholders, including Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI), the standard withholding tax rate is 20% plus applicable surcharge and cess. Shareholders can opt for a lower rate under Double Taxation Avoidance Agreement (DTAA) provisions if more beneficial. To avail DTAA benefits, shareholders must submit:

  • A copy of PAN (if available)
  • Self-attested Tax Residency Certificate (TRC)
  • Form 41 filed electronically
  • Self-declaration regarding beneficial ownership and no taxable presence in India

Action Required from Shareholders

Shareholders must ensure their demat account details, including PAN, residential status, category, email ID, address, and bank mandate, are updated with their Depository Participants. Physical shareholders should furnish these details to the Registrar and Share Transfer Agent, Sarthak Global Limited.

To determine the appropriate withholding tax rate, shareholders must submit required documents to the RTA at investors@sarthakglobal.com on or before Friday, August 21, 2026. The company will not entertain communications or documents regarding tax determination after this date. If tax is deducted at a higher rate due to missing documents, shareholders may file income tax returns to claim refunds where eligible.

Historical Stock Returns for Patanjali Foods

1 Day5 Days1 Month6 Months1 Year5 Years
-0.12%-1.65%-5.91%-31.88%-43.43%-2.63%

How does the reduced FY26 third interim dividend of ₹1.50 compared to the previous ₹1.75 payouts signal Patanjali Foods' capital allocation strategy for FY27?

What impact will the new ₹0.80 interim dividend for FY27 have on the company's overall payout ratio and retained earnings for future expansion?

Will the strict August 21, 2026 deadline for tax documentation submissions lead to a spike in refund claims from shareholders who missed the cutoff?

More News on Patanjali Foods

1 Year Returns:-43.43%