PATANJALI - Patanjali Foods

📊 NSE: PATANJALI 🏢 Solvent Extraction 📅 Last Updated: 12/14/2025 10:55

💰 Financial Performance

Revenue Growth by Segment

Edible Oils (H1 FY26: INR 13,653.72 Cr, +21% YoY), Oil Palm Plantation (H1 FY26: INR 1,191 Cr), FMCG (Q2 FY26: INR 2,914 Cr). Overall Q2 FY26 revenue grew 20.95% YoY to INR 9,798.84 Cr.

Geographic Revenue Split

Not disclosed in available documents, though the brand has a presence in India and abroad.

Profitability Margins

Q2 FY26: EBITDA 6.13%, PBT 5.13%. FMCG segment targets >10% OPBITDA margin. Biscuits segment reported 9.65% EBITDA margin in the previous year.

EBITDA Margin

6.13% in Q2 FY26, with segment-specific margins of 3.53% for edible oils and 24.16% for oil palm plantation. Absolute EBITDA grew 22.17% YoY to INR 603.32 Cr.

Capital Expenditure

FPO expected to bring ~INR 4,300 Cr; routine capex funded via internal accruals; no major debt-funded capex planned over the medium term.

Credit Rating & Borrowing

[ICRA]A+ (Stable) and [ICRA]A1+ assigned; BWR upgraded ratings based on scale growth. Borrowing increased due to withdrawal of working capital limits and LC to fund business operations.

⚙️ Operational Drivers

Raw Materials

Crude palm oil, sugar, flour (wheat), packing material, and fresh fruit bunches (FFB).

Import Sources

Indonesia (palm oil), Russia, and Ukraine (sunflower oil supply chain context).

Key Suppliers

Patanjali Group entities (provide raw materials, packaging, logistics, and security services).

Capacity Expansion

Strategically expanded area under oil palm cultivation to reduce import dependence; segment revenue reached INR 599.43 Cr in Q2 FY26.

Raw Material Costs

Edible oil segment (70% of revenue) is highly sensitive to global price volatility; biscuits margins are critically dependent on palm oil, sugar, and flour costs.

Manufacturing Efficiency

Improvement in crushing capacity utilization following acquisition and availability of working capital limits.

Logistics & Distribution

Synergy with Patanjali Group's distribution network; addition of new distributors to penetrate new markets.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Restructuring into a focused FMCG enterprise; targeting 8-10% growth in Food and 15% in HPC; leveraging MS Dhoni endorsements for brands like Ruchi Gold and Mahakosh; expanding oil palm plantation as a major growth driver.

Products & Services

Edible oils (Ruchi Gold, Mahakosh, Sunrich), Nutrela honey, high-protein atta, Doodh Biscuits, ghee, and Home & Personal Care (HPC) products.

Brand Portfolio

Ruchi Gold, Mahakosh, Sunrich, Nutrela, Patanjali.

New Products/Services

Nutrela honey, high-protein atta, biscuits, and bakery products (acquired for INR 60 Cr).

Market Expansion

Penetration into new markets through addition of distributors and utilizing Patanjali Group's existing network.

Market Share & Ranking

Patanjali is a prominent brand name; Ruchi Gold, Mahakosh, and Sunrich are flagship brands with robust growth in the edible oil sector.

Strategic Alliances

Acquisition of Patanjali Ayurved's FMCG business; operational linkages with Patanjali Group entities for logistics and raw materials.

🌍 External Factors

Industry Trends

Shift from low-margin edible oils to high-margin FMCG; growing focus on Ayurveda and wellness; domestic palm oil cultivation to reduce import reliance.

Competitive Landscape

Intense competition from large MNCs and domestic players in the FMCG and edible oil sectors affecting pricing power.

Competitive Moat

Strong brand association with Swami Ramdev; massive distribution synergy with Patanjali Group; diversified portfolio (Edible Oil, Food, HPC, Plantation).

Macro Economic Sensitivity

Sensitive to high inflation which can slow growth in FMCG segments and reduce consumer purchasing power.

Consumer Behavior

Addressing demand for wellness and Ayurvedic products; shifting to value-added FMCG products like high-protein atta.

Geopolitical Risks

Supply disruptions from Russia-Ukraine war and Indonesia export bans previously impacted profitability.

⚖️ Regulatory & Governance

Industry Regulations

GST rate changes; environmental norms for manufacturing waste; import/export duties on edible oils.

Environmental Compliance

Exposed to physical climate risks affecting raw material availability (FFBs, grains); impact of waste treatment and plastic usage norms.

Taxation Policy Impact

GST rate changes expected to be 300-400 bps accretive to growth; Q2 FY26 PAT aided by tax refunds from previous years.

Legal Contingencies

Ongoing litigations against parent company and key management (Swami Ramdev, Acharya Balkrishna); penalty order issued by Office of the Commissioner of Central Excise & Central Tax, Mangalore in December 2025.