Patanjali Q3 profit up 60%, EBITDA down 22% on increase in raw material costs

Patanjali Foods on Wednesday reported a robust 60.1% increase in its consolidated net profit, which climbed to ₹593.44 crore for the quarter ended December 31, 2025. The company had reported a net profit of ₹370.88 crore in the corresponding quarter of the previous fiscal year. While the company achieved its strongest financial performance across multiple metrics, the bottom line was bolstered by a substantial tax credit of ₹317.21 crore relating to earlier years.

Record revenue amid cost pressures

The company’s revenue from operations reached a new peak of ₹10,483.71 crore, marking a 16.53% year-on-year (YoY) growth fuelled by festive demand and disciplined business execution. Total income for the quarter stood at ₹10,541.12 crore. However, the company faced a challenging industry environment marked by margin compression. Total EBITDA (excluding exceptional items) fell approximately 22% YoY to ₹492.06 crore. This impact was primarily driven by an increase in raw material costs and a shift in the FMCG product mix toward lower-margin staples.

FMCG performance and operational efficiency

Despite broader cost pressures, the FMCG segment emerged as a vital pillar of stability, contributing 66.33% of the total EBITDA (excluding unallocable income).

• Segment growth: FMCG revenue reached ₹3,248.35 crore, reflecting a rapid 38.93% YoY growth.

• Profitability: The segment reported an EBITDA of ₹353.45 crore with a margin of 10.88%.

• Edible oils: Revenue from the edible oil segment stood at ₹7,335.71 crore (8.98% YoY growth), though it faced more direct margin pressure from volatile input prices.

Exceptional items

The company recorded an exceptional charge of ₹30.19 crore during the quarter. This non-recurring expense is attributed to the incremental impact of transitioning to new labour codes.

Patanjali continues to aggressively expand its backward integration. Its palm plantation footprint has now crossed 1.08 lakh hectares as of December 2025. Following the 2:1 bonus share issue in September 2025, the company’s earnings per share (EPS) for the quarter stood at ₹5.46, up from ₹3.42 in the previous year. The company remains on course to establish the FMCG vertical as the central driver of long-term growth and profitability.

The shares of Patanjali Foods ended 0.07% lower at ₹521.20 apiece on the national stock exchange on Wednesday. The company's stock has fallen over 14% in the past year, compared to the 13% gain made by the benchmark Nifty 50 during the same period.