Patanjali Foods Q2 profit falls 19% despite 15.5% revenue growth; FMCG business faces margin pressure

Patanjali Foods reported a 15.55% year-on-year increase in revenue from operations to ₹11,322.58 crore in the September quarter (Q2FY27), but its net profit declined 18.76% to ₹419.77 crore, as rising input costs and weaker profitability weighed on earnings despite higher sales.

The company's profit before tax (PBT) fell 19.02% to ₹409.02 crore from ₹505.09 crore in the year-ago quarter. Operating EBITDA, excluding exceptional items, stood at ₹425.63 crore, translating into a margin of 3.76%. Gross profit during the quarter was ₹1,439.14 crore, with a margin of 12.62%.

The company's two key businesses, edible oils and FMCG, reported contrasting performances. While edible oils drove topline growth, the FMCG business saw relatively subdued revenue growth and lower segment profitability.

For the first half of FY27, Patanjali Foods reported its highest-ever revenue from operations of ₹22,660.03 crore, registering 22.06% growth over the year-ago period. Operating EBITDA stood at ₹969.03 crore, with a margin of 4.28%, while PBT was ₹862.36 crore, with a margin of 3.79%.

Edible oils drive growth as FMCG profitability comes under pressure

The edible oils segment recorded its highest-ever quarterly revenue of ₹8,532.25 crore, growing 22.39% year on year. However, its EBITDA margin stood at 3%, with EBITDA of ₹256.22 crore.

The FMCG segment, meanwhile, reported revenue of ₹2,923.48 crore, contributing 25.5% to the company's revenue from operations. Its EBITDA stood at ₹221.33 crore, with a margin of 7.57%. The segment contributed 45.04% to the company's EBITDA, excluding unallocable income.

Within FMCG, the biscuits business emerged as a bright spot, recording its highest-ever quarterly revenue of ₹638.31 crore, up 27.69% year on year. Its EBITDA margin improved to 11.91% from 9.79% in Q2FY26. The company's Doodh biscuits brand, valued at around ₹1,300 crore, generated approximately ₹475 crore in quarterly revenue.

The home and personal care category also grew 11.06% to ₹713.88 crore, led by skin care, which reported 25.58% growth to ₹187.50 crore. Home care revenue increased 17.53% to ₹91.07 crore.

However, the broader FMCG segment's revenue remained largely flat compared with ₹2,914.24 crore in the corresponding quarter last year.

Commenting on the performance, Sanjeev Asthana, CEO of Patanjali Foods, said, “The quarter also saw a shift in festive demand, with Navratri commencing in October this year compared to September last year, while Pitru Paksha during September deferred some festive-led purchases influencing the timing of festive-led demand and revenue across the quarters.”

He added that the company expects growth momentum to continue following the festive season and with the upcoming wedding season. Its priorities include premiumisation, scaling its edible oils and FMCG portfolio, expanding its oil palm plantation business and improving operational efficiencies.