Patanjali Foods shares extended their impressive rally, gaining nearly 16.5% over the past four trading sessions from ₹338.55 on September 15 to ₹412.90 on September 23. The stock was trading at ₹411.55 as of 11:19 am on September 23, outperforming the NIFTY LARGEMIDCAP 250 index which was up 0.45%. The stock opened at ₹394 and climbed to an intraday high of ₹412.90, while its day's low stood at ₹394. According to Goodreturns, the buying interest came even as the stock remains below its levels at the beginning of the year, with management's confidence around FY27 and strong June-quarter numbers bringing attention back to the stock. Active trading was witnessed with nearly 79.29 lakh shares traded on the NSE, compared with an average daily volume of around 52.15 lakh shares, recording roughly 1.52 times its average full-day volume.
Global investment firm Jefferies remains confident of Patanjali Foods achieving the higher end of edible oil margin guidance of 4% and sustaining 18-20% margins in the home and personal care segment. According to Jefferies, management highlighted near-term rural demand softness but expects a festive-led recovery driven by resilient urban demand. Despite sunflower oil supply disruptions and commodity inflation, the company maintained its FY27 growth guidance of 4% volume for edible oil, 8-10% for foods and 15% for home and personal care segment. CEO Sanjeev Asthana told CNBC TV18 that the company continues to see healthy urban demand, while higher input costs and the rural slowdown remain key factors to watch. "Overall, I would be less optimistic on the rural demand. But the urban demand side looks very optimistic," Asthana noted, adding that the company is getting into the peak season with Pay Commission enthusiasm creating broader market positivity.
The yoga guru-backed company delivered impressive first-quarter results, with consolidated net profit surging 87% year-on-year to ₹336 crore in Q1 FY27, compared to ₹180 crore in the same period last year. Revenue from operations advanced 29% to ₹11,337 crore compared with ₹8,766 crore in the year-ago period. The company reported strong operational performance with EBITDA advancing 69% to ₹543 crore and EBITDA margin improving by 110 basis points to 4.8%. As per Goodreturns, the June quarter was the fourth consecutive quarter in which Patanjali Foods recorded its highest-ever revenue, demonstrating consistent growth momentum across quarters.
Management provided detailed growth projections for FY27 across key business segments, with FMCG business expected to grow 18-20% while the foods business is projected to expand 8-10%. According to Jefferies, Asthana said the company expects the food business to grow in the range of 8-10% and added that its biscuits business is doing well and the nutraceuticals segment is picking up. However, the management's commentary on consumer demand was mixed, with Asthana noting that urban consumption continues to be strong and the company expects the festive period to remain favourable, but rural demand is comparatively weaker with the monsoon emerging as a concern. Supply conditions in edible oils present another challenge, with more than 90% of India's sunflower oil imports currently stuck, making supply a major issue for the company.
The management has addressed investor concerns regarding regulatory issues and promoter stake. As reported by Goodreturns, Asthana confirmed there were no regulatory issues affecting the foods business and further stated that loans had not been taken against the promoters' 38% holding in the company. These comments come as the stock attempts to recover after remaining under pressure for much of 2026. The company is also looking at free cash flow of ₹700-800 crore in FY27, providing investors with another measure of how management expects the business to perform beyond reported revenue and profit.
