Patanjali Foods posts 29 per cent revenue growth, declares two interim dividends

MUMBAI: Patanjali Foods has found the right recipe for growth. The company posted a 29.3 per cent year-on-year rise in standalone revenue from operations to Rs 11,337.45 crore for the quarter ended 30 June 2026, marking its fourth consecutive quarter of record topline growth.

Revenue was up from Rs 8,766.03 crore in the year-ago quarter and edged 1.6 per cent higher than the Rs 11,155.60 crore recorded in the March quarter. Total income stood at Rs 11,341.89 crore, compared with Rs 8,779.02 crore in the corresponding quarter last year.

The performance was powered by both sides of the business, with edible oils retaining their heavyweight status while the FMCG portfolio continued to gather pace.

The edible oil segment generated revenue of Rs 8,504.72 crore, up 27.3 per cent from Rs 6,682.08 crore a year earlier and 2.2 per cent from the previous quarter.

The segment reported EBITDA of Rs 443.87 crore, translating into a margin of 5.22 per cent. Its segment result before finance costs and tax rose sharply to Rs 412.20 crore from Rs 82.11 crore in Q1 FY26.

The FMCG business, meanwhile, was the faster-growing engine. Revenue rose 35.4 per cent year on year to Rs 2,937.75 crore from Rs 2,169.79 crore. The segment accounted for 25.65 per cent of revenue, excluding inter-segment revenue, and generated EBITDA of Rs 189.52 crore at a 6.45 per cent margin.

Even the company’s smaller wind power generation business moved into the green, posting revenue of Rs 11.87 crore and a pre-tax segment profit of Rs 1.96 crore, compared with a loss in the year-ago period.

The stronger topline also made its way down the profit statement.

Gross profit increased 35.2 per cent year on year to Rs 1,521.97 crore, with a margin of 13.42 per cent. Operating EBITDA, excluding exceptional items, climbed 69.2 per cent to Rs 543.40 crore, taking the operating margin to 4.80 per cent.

Profit before tax jumped 82.4 per cent to Rs 453.34 crore. Standalone profit after tax rose to Rs 335.86 crore from Rs 180.39 crore in Q1 FY26.

Earnings per share stood at Rs 3.09 on a face value of Rs 2 per share.

On a consolidated basis, revenue was Rs 11,337.45 crore, while profit after tax stood at Rs 335.73 crore and profit before tax at Rs 453.22 crore.

The FMCG portfolio delivered growth across several categories.

Biscuits had their biggest quarter yet, with sales reaching Rs 560.14 crore, up 27.3 per cent year on year and 17.2 per cent sequentially. The Doodh biscuit brand alone generated around Rs 400 crore, helped by newer offerings including Almond and Chyawanprash cookies.

Consumer staples crossed the Rs 1,000-crore mark, while Nutrela revenue rose 14.3 per cent year on year to Rs 159.55 crore. Its EBITDA margin remained above 18 per cent.

Home and personal care contributed Rs 629.16 crore. Dental care remained the largest contributor at Rs 325.42 crore, up 13.8 per cent year on year. Skin care rose 21.8 per cent to Rs 164.82 crore, while home care revenue increased 5.2 per cent to Rs 82.98 crore.

Ghee contributed Rs 219.09 crore, while beverages generated Rs 37.99 crore and nutraceuticals Rs 17.85 crore. Honey, spices and herbal products together contributed Rs 202.94 crore.

Patanjali Foods also continued to expand its upstream oil palm operations. The cultivated area reached 1,15,861 hectares out of an allocated 6.63 lakh hectares, with about 37 per cent of the cultivated area in the prime yield age of seven to 25 years.

Exports, however, remained a soft spot. Revenue from overseas markets fell to Rs 29.82 crore amid supply chain disruption and logistics challenges linked to the conflict in the Middle East.

Patanjali Foods Limited chief executive officer Sanjeev Asthana attributed the performance to continued investment in brands, wider distribution and integrated sourcing. The company spent about 1 per cent of its operating revenue on advertising and promotion during the quarter.

The strategy appears to be paying off, particularly as Patanjali expands beyond its traditional edible oil base into biscuits, staples, personal care, beverages and health products.

The company also served up a little extra for shareholders.

Its board declared a third interim dividend of Rs 1.50 per share for FY2025-26 and a first interim dividend of Rs 0.80 per share for FY2026-27. Both dividends have 21 August 2026 as the record date, with payment scheduled on or before 12 September.

The board also approved the reappointment of Acharya Balkrishna as chairman and non-executive non-independent director, subject to retirement by rotation at the annual general meeting.

Patanjali Foods’ 40th annual general meeting is scheduled for 29 September 2026 at 3pm through video conferencing. The board also appointed Balwinder & Associates as cost auditors for FY2026-27.

During the quarter, the company allotted 4,400 equity shares under its 2023 employee stock option scheme, taking paid-up equity capital marginally higher to Rs 217.58 crore.

With food inflation rising to 5.32 per cent in June from 4.78 per cent in May, Patanjali Foods’ ability to grow both its oil franchise and higher-margin FMCG categories could prove crucial. For now, the numbers suggest its recipe is working: more brands on the shelf, stronger distribution and a business that is increasingly about more than just oil.
Shareholders get a double serving

The company also served up a little extra for shareholders.

Its board declared a third interim dividend of Rs 1.50 per share for FY2025-26 and a first interim dividend of Rs 0.80 per share for FY2026-27. Both dividends have 21 August 2026 as the record date, with payment scheduled on or before 12 September.

The board also approved the reappointment of Acharya Balkrishna as chairman and non-executive non-independent director, subject to retirement by rotation at the annual general meeting.

Patanjali Foods’ 40th annual general meeting is scheduled for 29 September 2026 at 3pm through video conferencing. The board also appointed Balwinder & Associates as cost auditors for FY2026-27.

During the quarter, the company allotted 4,400 equity shares under its 2023 employee stock option scheme, taking paid-up equity capital marginally higher to Rs 217.58 crore.

With food inflation rising to 5.32 per cent in June from 4.78 per cent in May, Patanjali Foods’ ability to grow both its oil franchise and higher-margin FMCG categories could prove crucial. For now, the numbers suggest its recipe is working: more brands on the shelf, stronger distribution and a business that is increasingly about more than just oil.