Patanjali Foods delivered exceptional June-quarter results with consolidated net profit jumping 86% year-on-year to ₹3.36 billion, compared with ₹1.8 billion in the corresponding quarter last year. The company achieved its highest-ever quarterly revenue of ₹11,300 crore, representing a 29% YoY increase and coming in 20% ahead of Jefferies estimates. According to the latest disclosure, the company also declared a 40% interim dividend of ₹0.80 per equity share for FY27, payable on or before September 12, 2026. An earnings call is scheduled for August 17, 2026, at 9:30 am IST to discuss these financial outcomes with investors and analysts.
Multiple brokerages have issued bullish recommendations on Patanjali Foods following the strong Q1 performance. Jefferies has retained a Buy call with a target price of ₹560, implying a 59% upside from current levels, while Systematix Institutional recommends buying with a target price of ₹580, highlighting strong revenue growth despite inflation challenges. The brokerages expect the company's profit after tax to grow at a compound annual growth rate (CAGR) of 23% between FY26-29, with return on capital employed (ROCE) improving by about 590 basis points to 18% over the same period. According to Systematix, the stock currently trades at ₹352.05 with their revised target price of ₹580, valuing the stock at 30x P/E to arrive at the June-2028E target.
On the operational front, EBITDA increased 69% YoY to ₹5.43 billion, with the EBITDA margin expanding significantly to 4.79% from 3.61% in Q1FY26, representing an improvement of 118 basis points. According to the latest earnings call, the company implemented calibrated price hikes across categories in response to sharp cost-inflation across edible oils, crude-linked inputs, packaging, freight and logistics. The management indicated that in edible oils, the company carries long positions and thereby benefits from the inflation, with Q1 operating margin expanding 340 basis points. Sequentially, EBITDA rose from ₹3.2 billion, with the margin improvement from around 4.0%, indicating improved operating leverage and cost efficiencies.
Edible oils remained the company's largest revenue contributor with segment revenue rising 27% YoY to ₹8,500 crore, in Q1 FY27, compared with ₹6,682.08 crore in the year-ago quarter. The Foods & FMCG segment grew revenue by 28% YoY, with the biscuits business achieving its strongest quarter yet at ₹560 crore, up 27% YoY, with margins improving to 15.4%. Mustard oil sales stood out, with prices across the category rising amid the West Asia conflict and broader commodity inflation. The plantations business grew 25% YoY, and the company expanded its cultivated land to 116,000 hectares, up from 111,000 hectares in March 2026. Management highlighted strong expansion in biscuits with good growth in ₹5/10 packs along with positive traction in premium biscuits such as almond cookies. The company reaffirmed FMCG FY27 EBITDA growth guidance of 12-15% despite margin pressure from input cost inflation.
Despite strong revenue growth, profitability across the Foods & FMCG segment took a hit due to input cost inflation, with the company unable to pass on rising costs through pricing. According to Jefferies' report, profitability was impacted due to input cost inflation and is expected to recover over the coming quarters. The management cautioned on El Nino and its likely impact on rural demand/income trends during the Q127 earnings call. Sanjeev Asthana, Chief Executive Officer of Patanjali Foods, highlighted the company's consistent performance, stating they delivered their fourth consecutive highest-ever quarterly revenue despite dynamic operating conditions. The upcoming earnings call will address investor queries about the sustainability of margin expansion and the company's plans for increased cash flow allocation between debt reduction, capex, and shareholder returns.
