Patanjali Foods reported a 46% year-on-year rise in net profit for the March quarter, aided by strong growth across its edible oils and FMCG businesses. However, higher raw material and packaging costs weighed on profitability. The company’s profit after tax rose to Rs 524 crore in the quarter ended March 2026 from about Rs 359 crore a year earlier.

Revenue from operations increased 17% year-on-year (YoY) and 6% sequentially to Rs 11,217 crore during the quarter. Despite the strong top-line performance, margins remained under pressure due to rising input costs.

Gross profit stood at Rs 1,398 crore, translating into a margin of 12.47%. The company said profitability was impacted by a sharp rise in packaging material costs during the latter half of March, particularly for PET bottles and polyester films, driven by crude oil volatility and higher freight expenses.Cost of goods sold increased by 294 basis points as a percentage of revenue on a YoY basis. EBITDA, excluding exceptional items, came in at Rs 502 crore with an EBITDA margin of 4.48%.

The edible oils business remained the largest contributor to revenue. The segment reported revenue of Rs 8,324 crore during the quarter, up 23% YoY and 13.5% sequentially. Segment EBITDA stood at Rs 215 crore, with margins of 2.58%.
Branded edible oils accounted for nearly 75% of total edible oil sales and continued to drive growth.
The company said palm oil prices strengthened sharply during the quarter, with refined palm oil prices rising nearly 20% between January and March 2026. The increase was driven by higher import costs from Malaysia and Indonesia, elevated freight charges, rising insurance costs and expectations of tighter global supplies.
Soya oil prices also moved higher, rising 23% during the quarter.

The FMCG segment continued its strong performance and generated revenue of Rs 2,890 crore, up 14% YoY. Segment EBITDA rose 14% to Rs 292 crore, while margins stood at 10.1%.

The FMCG business contributed nearly 26% of quarterly revenue and almost 58% of segment EBITDA during the quarter, underscoring its growing importance in the company’s earnings mix.

Within FMCG, biscuits remained a key growth driver. Quarterly biscuit revenue rose nearly 14% to Rs 478 crore. For FY26, biscuit revenue crossed Rs 1,907 crore, growing 16%.

The company said its Doodh biscuit brand has now become a Rs 1,300-crore-plus annual sales brand, while Nariyal biscuits continued gaining market share.

The Staples portfolio generated quarterly revenue of Rs 849 crore, while the home and personal care business posted strong growth of 35% to Rs 840 crore. The skincare category emerged as one of the fastest-growing segments, with revenue rising 58% YoY.

The ghee business reported quarterly revenue of Rs 339 crore, while textured soya products contributed Rs 106 crore.

Beverages and juices also witnessed improved demand toward the end of the quarter as summer consumption recovered after an initially delayed season.

The company’s nutraceutical business generated revenue of Rs 18 crore following internal restructuring initiatives. Exports contributed Rs 32 crore during the quarter, while annual export revenue stood at Rs 187.8 crore. Patanjali Foods exported products to 37 countries during FY26.

For the full year, Patanjali Foods reported its highest-ever annual revenue from operations at Rs 40,170 crore, representing growth of 19% over FY25.

The edible oils business generated annual revenue of Rs 29,313 crore, while the FMCG segment reported annual revenue of Rs 11,188 crore, up nearly 20%. The company also continued expanding its oil palm plantation business under the government’s edible oil self-sufficiency push.

As of March 2026, the total oil palm cultivated area under the company’s network stood at 1.11 lakh hectares across 12 states, reflecting growth of 24% YoY.

Patanjali Foods spent around 2% of quarterly revenue on advertising and brand-building activities during the quarter.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times.)

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