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

Patanjali Foods Limited has received a show cause notice from the Office of the Assistant Commissioner (ST), Royapuram (C) Assessment Circle, North Division, Chennai, demanding a total tax of Rs. 1352,92,49,106 plus a penalty of Rs. 135,29,24,910 for the financial year 2022-23. The notice, dated May 25, 2026, was issued under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017. The demand arises from alleged differences and anomalies identified by the tax authorities upon comparing GSTR-3B returns filed by the company with GSTR-7 returns filed by deductors.

The tax authority has demanded Rs. 676,46,24,553 each in SGST and CGST, along with a penalty of Rs. 135,29,24,910, calculated at 10% of the demand for each tax component. Additionally, the notice includes an interest charge of 18% on the CGST and SGST components. The company stated that the discrepancies were found due to alleged differences in turnover reported by the company and the deductors of TDS.

Company Response and Financial Implications

Patanjali Foods Limited is currently in the process of submitting appropriate responses in consultation with its tax advisors. The company 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 stated that it does not expect any financial liability arising from this matter.

However, the company noted that the exact financial implications cannot be determined until the completion of the proceedings. The disclosure was made to BSE Limited and National Stock Exchange of India Limited in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Breakdown of Demand