Patanjali Foods Limited has received a prohibition order from the Office of Designated Officer (Food Safety), Civil Station, Kannur District, restricting the sale of a specific batch of Sorghum Flour due to the presence of maximum levels of pesticide residues. The order, received via email on June 20, 2026, specifically cites the presence of Chlorpyrifos in the product. The company stated that there is no material impact on its financial or operational activities, except to the extent of the value of the Sorghum Flour belonging to the particular batch.

The regulatory action limits the sale of the affected batch to the Kannur District. According to the disclosure, the violation identified was the presence of maximum levels of Pesticide Residues of Chlorpyrifos. The company has indicated that it will file an appeal against the order passed by the Designated Officer.

The disclosure was made to the stock exchanges in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The communication was submitted by Ramji Lal Gupta, Company Secretary of Patanjali Foods Limited.

Details of the Prohibition Order

Patanjali Foods Limited has invested ₹5 crore in its wholly-owned subsidiary, Contemporary Agro Private Limited (CAPL), through a rights issue to strengthen the subsidiary's capital base. The investment was made on June 19, 2026, by subscribing to 50,00,000 zero percent redeemable preference shares of ₹10 each. This infusion of funds is aimed at supporting CAPL's operations in the agricultural sector without altering the parent company's control.

The transaction was disclosed to the stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. As CAPL is a wholly-owned subsidiary, the investment falls within the ambit of related party transactions. The company confirmed that the deal was conducted at arm’s length and that no other promoter or group companies hold any interest in CAPL beyond the parent company's stake.

CAPL was incorporated on April 18, 2024, and operates within the agricultural and allied activities sector. The subsidiary's primary objectives include providing training to farmers, improving farming techniques, and innovating in agriculture and plantation. Additionally, CAPL focuses on producing high-quality seeds for fruits, vegetables, and grains. For the financial year ended March 31, 2026, the subsidiary reported a turnover of NIL.

The rights issue was executed entirely via cash consideration. Following this investment, Patanjali Foods continues to hold 100% of the share capital of CAPL, meaning there is no change in the percentage of shareholding or control. The company stated that no specific governmental or regulatory approvals were required for this acquisition, as it involved an internal capital restructuring of an existing subsidiary.

Investment Details

The table below outlines the key financial and structural details of the investment:

Regulatory Context

The filing referenced SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, alongside the standard Listing Obligations and Disclosure Requirements Regulations. The disclosure was signed by Ramji Lal Gupta, Company Secretary of Patanjali Foods Limited, and submitted to both BSE Ltd. and National Stock Exchange of India Ltd. The submission confirmed that the investment is strategic in nature, intended to bolster the subsidiary's capacity to innovate and expand within the farming and agricultural domain.