This article first appeared on GuruFocus .
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Revenue from Operations (Q3 FY26):INR10,483.71 crores, 16.53% year-on-year growth.
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EBITDA (Q3 FY26):INR492.06 crores, margin of 4.69%.
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Profit Before Tax (Q3 FY26):INR364.54 crores, PBT margin of 3.46%.
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Revenue from Operations (9M FY26):INR29,013.98 crores.
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EBITDA (9M FY26):INR1,429.56 crores, margin of 4.93%.
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Profit Before Tax (9M FY26):INR1,118.24 crores, PBT margin of 3.84%.
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Edible Oil Revenue (Q3 FY26):INR7,335.71 crores, 8.9% year-on-year growth, EBITDA margin of 2.39%.
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Oil Palm Plantation Revenue (Q3 FY26):INR418 crores, margin of 22.4%.
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FMCG Revenue (Q3 FY26):INR3,248 crores, 38.93% year-on-year growth, EBITDA margin of 10.88%.
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Biscuit Revenue (Q3 FY26):INR490 crores, 26.4% year-on-year growth.
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Staples Revenue (Q3 FY26):INR1,255 crores, 68.70% year-on-year growth.
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Ghee Revenue (Q3 FY26):INR467 crores, 21% quarter-on-quarter growth, 46% year-on-year growth.
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HPC Revenue (Q3 FY26):INR627 crores.
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Retail Outlets:Over 2 million retail outlets, with an addition of 0.2 to 0.25 million new outlets in the last year.
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Release Date: February 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Patanjali Foods Ltd ( BOM:500368 ) achieved the highest ever revenue from operations in Q3 FY26, amounting to INR10,483.71 crores, marking a year-on-year growth of 16.53%.
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The FMCG segment showed robust growth with a quarterly revenue of INR3,248 crores, reflecting a 38.93% year-on-year increase.
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The company successfully introduced higher grammage packs and revised pricing to pass on GST-related benefits to consumers, anticipating stronger volume recovery.
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The edible oil segment recorded a revenue of INR7,335.71 crores, with 85% of sales coming from branded oils, driven by strong marketing initiatives.
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Patanjali Foods Ltd ( BOM:500368 ) expanded its distribution network, now present in over 2 million retail outlets, and increased its presence across modern trade, e-commerce, and quick commerce platforms.
Negative Points
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The EBITDA margin for the edible oil segment was relatively low at 2.39%, indicating pricing pressures in this segment.
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Temporary trade disruptions occurred in September and October due to GST 2.0 reforms, impacting operations.
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The company faced challenges with palm oil prices declining by 12.6% year-on-year, affecting the edible oil segment's profitability.
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Staples continue to be a drag on margins due to lower brand loyalty and price sensitivity in this category.
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The competitive intensity in the toothpaste market remains high, with limited growth potential between 3% and 5%.
Q & A Highlights
Q: How did Patanjali Foods handle the GST pass-through for biscuits, toothpaste, and hair oil? A: Sanjeev Asthana, CEO, explained that for biscuits, the company increased the grammage, while for shampoo and hair oil, the price benefit was transferred through pricing adjustments.
Q: What is the outlook for the toothpaste industry in terms of volume growth and competitive intensity? A: Sanjeev Asthana, CEO, noted that competition is intense with limited growth of 3% to 5%. Patanjali's dental care business has performed well, with significant growth driven by new variants, brand ambassadors, and strong traction in B and C towns and rural areas. The company aims for a 15% growth rate in the HPC segment.
Q: Can you provide the EBITDA numbers for HPC, biscuits, staples, and ethnic foods? A: Sanjeev Asthana, CEO, provided the following EBITDA figures: Nonfood - INR157 crores (24.95% margin), Biscuits - INR47 crores (9.57% margin), Foods - INR151 crores (7.54% margin), and Edible Oil - INR175 crores (2.4% margin).
Q: How does Patanjali Foods view growth in the staples and higher-margin food segments? A: Sanjeev Asthana, CEO, stated that the company targets 8% to 10% growth in the food space with margins between 8% and 10%. The HPC business aims for 15% growth, and the edible oil business targets 3% to 4% volume growth. The company expects to maintain these growth rates despite seasonal variations.
Q: What is the outlook for margins in the edible oil segment given the current pricing pressures? A: Sanjeev Asthana, CEO, explained that the company targets an EBITDA margin of 2% to 4% for the edible oil business, focusing on volume growth. The company is confident in maintaining margins close to 4% despite pricing pressures, with a shift towards branded players and consolidation in the segment.
Q: How does Patanjali Foods manage inventory and pricing in the edible oil segment? A: Sanjeev Asthana, CEO, noted that inventory is marked down to quarter-end pricing, and any subsequent price increases benefit the company. The interplay between palm, soya, and sunflower oils affects pricing, but the company focuses on maintaining a balanced portfolio.
Q: What is the company's strategy for expanding its product lines and addressing competition from new-age brands? A: Sanjeev Asthana, CEO, mentioned that Patanjali Foods has a pipeline of new products and SKUs, with plans to launch premium products in the biscuits category and new products in the HPC segment over the next six months. The company aims to remain nimble and responsive to market challenges.
Q: What are the company's plans for expanding the area under oil palm cultivation? A: Sanjeev Asthana, CEO, stated that the company plans to add 40,000 hectares of oil palm cultivation in FY26-27, with 20,000 hectares in the Northeastern region and 20,000 hectares in South India. The company collaborates with farmers for long-term cultivation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
