PATANJALIBSEQ3 FY26February 18, 2026

Patanjali Foods Limited

6,010words
58turns
7analyst exchanges
3executives
Management on call
Sanjeev Asthana
CHIEF EXECUTIVE OFFICER, PATANJALI FOODS LIMITED
Kumar Rajesh
CHIEF FINANCIAL OFFICER, PATANJALI FOODS LIMITED,
Priyendu Jha
INVESTOR RELATIONS, PATANJALI FOODS LIMITED
Key numbers — 40 extracted
Rs. 10,483.71 crore
financials. During Q3 of FY26, the company delivered the highest ever revenue from operations of Rs. 10,483.71 crores, registering year-on-year growth of 16.53%. The total EBITDA, excluding the exceptional items fo
16.53%
highest ever revenue from operations of Rs. 10,483.71 crores, registering year-on-year growth of 16.53%. The total EBITDA, excluding the exceptional items for the quarter, stood at Rs. 492.06 crores wi
Rs. 492.06 crore
ear growth of 16.53%. The total EBITDA, excluding the exceptional items for the quarter, stood at Rs. 492.06 crores with a margin of 4.69%, while profit before tax was Rs. 364.54 crores, translating into a PBT ma
4.69%
TDA, excluding the exceptional items for the quarter, stood at Rs. 492.06 crores with a margin of 4.69%, while profit before tax was Rs. 364.54 crores, translating into a PBT margin of 3.46%. Please no
Rs. 364.54 crore
s for the quarter, stood at Rs. 492.06 crores with a margin of 4.69%, while profit before tax was Rs. 364.54 crores, translating into a PBT margin of 3.46%. Please note, the impact of labour code during Q3 stood
3.46%
margin of 4.69%, while profit before tax was Rs. 364.54 crores, translating into a PBT margin of 3.46%. Please note, the impact of labour code during Q3 stood at Rs. 30.19 crores. This has been classi
Rs. 30.19 crore
translating into a PBT margin of 3.46%. Please note, the impact of labour code during Q3 stood at Rs. 30.19 crores. This has been classified under the exceptional items. The company also delivered the highest
Rs. 29,013.98 crore
enue from operations for the 9 months of FY26, with reported revenue from operations amounting to Rs. 29,013.98 crores. The total EBITDA, excluding exceptional items for the period, was Rs. 1,429.56 crores, with a m
Rs. 1,429.56 crore
unting to Rs. 29,013.98 crores. The total EBITDA, excluding exceptional items for the period, was Rs. 1,429.56 crores, with a margin of 4.93%. Profit before tax stood at Rs. 1,118.24 crores, translating into a PBT
4.93%
tal EBITDA, excluding exceptional items for the period, was Rs. 1,429.56 crores, with a margin of 4.93%. Profit before tax stood at Rs. 1,118.24 crores, translating into a PBT margin of approximately
Rs. 1,118.24 crore
items for the period, was Rs. 1,429.56 crores, with a margin of 4.93%. Profit before tax stood at Rs. 1,118.24 crores, translating into a PBT margin of approximately 3.84%. Let me now give an overview of the oper
3.84%
Profit before tax stood at Rs. 1,118.24 crores, translating into a PBT margin of approximately 3.84%. Let me now give an overview of the operating environment of Q3 FY26: Q3 FY26 was a period of t
Guidance — 20 items
Sanjeev Asthana
opening
“During the course of this call, we will be referring to standalone financials.”
Sanjeev Asthana
opening
“During Q3 of FY26, the company delivered the highest ever revenue from operations of Rs.”
Sanjeev Asthana
opening
“The company also delivered the highest ever revenue from operations for the 9 months of FY26, with reported revenue from operations amounting to Rs.”
Sanjeev Asthana
opening
“Let me now give an overview of the operating environment of Q3 FY26: Q3 FY26 was a period of transition and execution, largely influenced by the rollout of GST 2.0 reforms.”
Sanjeev Asthana
opening
“We anticipate a stronger volume recovery ahead, with the positive effects of GST rate reductions expected to become more evident in the upcoming quarters.”
Sanjeev Asthana
opening
“Let me now walk you through the segment-wise performance during Q3 of FY26: For the edible oil segment, the quarterly revenue stood at Rs.”
Sanjeev Asthana
opening
“In the 9 months of FY26, each of these brands recorded double-digit growth in sales value.”
Sanjeev Asthana
opening
“In Q3 FY26, the palm oil prices decreased considerably.”
Sanjeev Asthana
opening
“For the 9 months FY26, the revenue were Rs.”
Coming to our FMCG segment
opening
“For the 9 months FY26, the revenue stood at Rs.”
Risks & concerns — 5 flagged
Please note, the impact of labour code during Q3 stood at Rs.
— Sanjeev Asthana
Urban demand is expected to strengthen in the coming quarters, aided by easing inflationary pressure and the positive impact of revised direct and indirect taxation measures, which should support discretionary spending.
— Now commenting on the outlook
The larger players have the benefit of managing their treasury and working capital and risk better and superior.
— Sanjeev Asthana
But the performance evaluation on a quarter-on- quarter basis is always a challenge.
— Sanjeev Asthana
So first, Staple continue to be a drag and that is little brand loyalty in this category.
— Tanya Sharma
Q&A — 7 exchanges
Q
Thanks. My first question is on biscuits, toothpaste and hair oil. If you could tell us in terms of GST pass-through, have you taken the grammage route or have you taken the price cut route? For example, biscuits, I think some regional players are still operating at Rs. 4.5 and 9 while the number one player transition fully to Rs. 5 and 10. I wanted to understand that for the three categories, what have you done, toothpaste, hair oil and biscuits. Thank you.
Sanjeev Asthana
To answer your question straight up, in biscuits we increased the grammage and in case of shampoo and hair oil, the price benefit was transferred through the pricing itself. In terms of outlook, how do you expect toothpaste for example, last one year toothpaste competitive intensity, promotional intensity has been high and there is the LUP, the GST benefit also because 30%-40% for the industry leader at least is the LUP and they are adding back grammage there. If you could comment, how do you see toothpaste industry volume growth and competitive intensity in FY27 and Q4? So, competition is fai
Q
Good morning, Sanjeev sir. Thank you for the opportunity. First, just a bookkeeping question. If you can give the EBITDA absolute numbers for the quarter for HPC, biscuits, staples and ethnic foods.
Sanjeev Asthana
EBITDA, the breakup of each of these, I can certainly give you. So, for the non-food, it's Rs. 157 crores and the margin is about 24.95%. Likewise, for the biscuit business, our EBITDA is Rs. 47 crores. Margin is 9.57%. Foods, the EBITDA is Rs. 151 crores. Margin is 7.54% and edible oil, the EBITDA is Rs. 175 crores, the margin is 2.4%. Great, sir. Thanks for that. Secondly, I just wanted to check, there has been a strong growth turnaround in our foods businesses, both staples and the higher margin foods, ethnic foods and biscuits also. So How does one think about growth in these segments goin
Q
Hi, team. Good morning. Thank you for the opportunity. Sanjeev sir, my first question is on edible oil. You mentioned that the imports, generally Quarter 3 declines for palm. Does that mean the system and even us have a higher inventory at the lower price or do you think we are just managing? So maybe if there is a price increase, we will have to take the price increase as and when the price increases happen for the imports.
Sanjeev Asthana
Yes, that's right. So, Shirish, what will happen is that you mark down the inventory to the quarter end pricing. That's the accounting part. Mr. Kumar Rajesh will explain better. But we have to mark it down and bring it to a particular level. And if thereafter the prices increase, then typically that benefit accrues to the company. The second thing is that even soya and sunflower is also becoming very lucrative in India. So, does that mean that the shift will happen from palm to sunflower or soya or that is not correct way to look at it? I would say that your thesis is correct, that the percei
Q
Hello. Good morning, sir. So, I had a couple of questions. So first, Staple continue to be a drag and that is little brand loyalty in this category. What are our plans from the FMCG mix perspective?
Sanjeev Asthana
So broadly, what has happened over a period of time, Staples have always been a revenue driver and less from a margin perspective, as you rightly mentioned that there's a bit of lower margin compared to the ethnic foods. So clearly, as I mentioned in my opening remarks and the release that we gave as well, that for example, in ghee, we had exponential growth. Of course, it was led to a large extent by the festival demand, etc. and some of the promos that we ran. So, there was a huge pickup in the ghee business. Likewise, so in terms of the, like we did almost Rs. 470 crores, Rs. 468 crores in
Q
My question is, like, on the product side, for which product lines are we planning to expand? So, we have not had many new product innovations and the new agent brands are giving competition, like companies give us this competition. So, what is your take on this and on the product innovation side?
Sanjeev Asthana
There is a pipeline of products that are constantly planned. And we continue to introduce new variants. SKU within the SKU itself, there's a constant mixing of new products, new SKUs, new ideas in the blend sector, as I was just mentioning, and also responding to the vertical through which the channel through which it is getting distributed. So, for example, as the change in e- com and quick-com has defined and redefined in the way consumers shop, and likewise for the modern trade and general trade. And so, to avoid the conflict, many times those adjustments are done. Some products on a trial
Q
Good morning, sir. I wanted to understand regarding area under cultivation. So, it is approximately 16% for the total area allocated. Could you guide how much hectares are we going to add in the area under cultivation?
Sanjeev Asthana
You are talking of oil palm, right? Yes, sir. Oil palm currently what we have is that 1,08,000 hectares (to be read as 1,08,164), which has been planted. This year, our target is that we should do close to 40,000 additional hectares, which is a mix of 20,000 in the northeastern part of the country and 20,000 in the South India. And for that we need to prepare well in advance on getting our sprouts and nurseries and others. And we are very much on course for that. What I am saying this year is ‘26-27. I am talking now. Yes. And the area under cultivation, the area is being allocated by the gove
Q
With this, I conclude the call. I sincerely thank you for your continued support and trust in Patanjali Foods. If you have any further queries, please contact SGA our Investor Relations Advisors.
Management
Speaking time
Sanjeev Asthana
23
Moderator
9
Shirish Pardeshi
6
Abhishek Mathur
4
Tanya Sharma
4
Abneesh Roy
3
Priya Kulkarni
3
Shagun Kabra
2
Shagun Kapra
2
Coming to our FMCG segment
1
Opening remarks
Sanjeev Asthana
Thank you and good morning to everyone. A very warm welcome to Patanjali Foods Limited's call to discuss the results for the 3rd quarter and 9-months-ended FY26. I am joined by the company's CFO; Kumar Rajesh ji along with Mr. Priyendu Jha from the Investor Relations Team and our IR partner, Strategic Growth Advisors. We have uploaded the results collateral on the stock exchanges as well as the company's website for your reference. Let me begin by giving a quick snapshot of our financial performance. During the course of this call, we will be referring to standalone financials. During Q3 of FY26, the company delivered the highest ever revenue from operations of Rs. 10,483.71 crores, registering year-on-year growth of 16.53%. The total EBITDA, excluding the exceptional items for the quarter, stood at Rs. 492.06 crores with a margin of 4.69%, while profit before tax was Rs. 364.54 crores, translating into a PBT margin of 3.46%. Please note, the impact of labour code during Q3 stood at Rs
Coming to our FMCG segment
The quarterly revenue stood at Rs. 3,248 crores, reflecting 38.93% year-on-year growth and a sequential growth of 12.31%. In Q3FY26, EBITDA margin came at 10.88%. For the 9 months FY26, the revenue stood at Rs. 8,297 crores (to be read as Rs. 8,297.79 crores), with an EBITDA margin of 11.06%. The FMCG segment contributed 30.68% of revenues in Q3 FY26, while contributing nearly 66.33% of EBITDA in Q3 of FY26. During the quarter, within the FMCG segment, biscuits reported revenue of Rs. 490 crores with a year-on-year growth of 26.4%. Doodh biscuits accounted for nearly 70% of biscuit sales. In the 9 months of FY26, the revenues from the biscuit brand Doodh surpassed FY25 levels with cumulative sales crossing Rs. 1,000 crores. The Nariyal biscuit continues to gain traction. Distribution is key in driving sales in this category. We are also strategizing on strengthening our reach in the southern region. Staple generated revenue of Rs. 1,255 crores (to be read as Rs. 1,255.67 crores), growi
Now commenting on the outlook
From a demand perspective, we are hopeful that at the end of FY26 could be strong, primarily supported by favorable macro tailwinds. The demand benefits are likely to accrue progressively over the coming months, supported by improved affordability, wider distribution, and a continued shift from unbranded to branded consumption. Together, these factors position the company well to capture the incremental demand and deliver a stronger performance in the coming quarters. Further, GST 2.0 reforms are likely to stimulate consumption over time. Urban demand is expected to strengthen in the coming quarters, aided by easing inflationary pressure and the positive impact of revised direct and indirect taxation measures, which should support discretionary spending. On the rural front, we anticipate sustained growth momentum, primarily supported by a healthy kharif output, moderating inflation, and continued support from the government welfare schemes that are enhancing disposable incomes. Togethe
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