PATANJALI
Mid CapPatanjali Foods Limited
Consumer
Patanjali Foods Limited is a diversified Indian consumer company operating in edible oils, oil palm plantations, and a broad FMCG portfolio including biscuits, staples, ghee, nutraceuticals, and home & personal care products. The company focuses on expanding its omni-channel distribution and strengthening its branded offerings.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is supportive, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 77/100Rev +15% YoY · PAT +46% YoY · +6% QoQ · operating leverage · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹11,156 Cr | +15.1% | +6.4% |
| EBITDA | ₹445 Cr | -13.8% | +2.5% |
| Operating margin | 4.0% | -100 bps | +0 bps |
| PAT | ₹524 Cr | +46.0% | -11.6% |
| PAT margin | 4.7% | +100 bps | -96 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Patanjali Foods reports highest ever Q3 FY26 revenue of Rs. 10,483.71 crores, up 16.53% YoY, driven by strong FMCG growth. Overall EBITDA margin stood at 4.69%, with FMCG contributing 66.33% of EBITDA.
The company delivered robust top-line growth, primarily fueled by its high-growth FMCG segment and strategic distribution expansion. While edible oil margins remain inherently volatile and lower, the increasing contribution from FMCG to overall EBITDA is a positive. Management's ambitious long-term growth and margin targets for FMCG and HPC segments warrant close monitoring.
Revenue by Segment (Q3 FY26)
Latest issuer-disclosed distribution across 2 reported categories.
Branded Edible Oils
Ruchi Gold, Mahakosh, and Sunrich recorded double-digit growth in sales value in 9M FY26, contributing nearly 85% of total edible oil sales.
FMCG Segment
The FMCG segment grew 38.93% YoY in Q3 FY26, driven by distribution expansion and strong performance in categories like biscuits and ghee.
Dental Care Category
Dental care business did nearly Rs. 340 crores in Q3 FY26, growing by Rs. 116 crores YoY, driven by multiple variants, new brand ambassadors, and strong traction in B&C towns/rural areas.
Ghee Category
Ghee revenues stood at Rs. 467.64 crores in Q3 FY26, reflecting 21% QoQ growth and 46.50% YoY growth, driven by festive and winter season demand.
Oil Palm Plantation Expansion
Targeting 40,000 additional hectares for oil palm cultivation in FY27 (20,000 in Northeast, 20,000 in South India). Current area under cultivation is 108,164 hectares.
Favorable Macro Environment
Company is hopeful for a strong end to FY26, primarily supported by favorable macro tailwinds.
GST 2.0 Reforms
GST 2.0 reforms are likely to stimulate consumption over time, with positive effects of rate reductions expected to become more evident.
Urban Demand Rebound
Urban demand is expected to strengthen, aided by easing inflationary pressure and positive impact of revised direct and indirect taxation measures supporting discretionary spending.
Sustained Rural Growth
Rural front anticipates sustained growth momentum, supported by healthy kharif output, moderating inflation, and government welfare schemes enhancing disposable incomes.
Temporary Trade Disruptions
Q3 FY26 experienced temporary trade disruptions in September and October due to GST 2.0 repricing actions, packaging updates, and operational adjustments.
Persistent Pricing Pressures
Pricing pressures are expected to persist amid tightening global vegetable oil supplies.
Intense Competition in HPC
Competition in categories like toothpaste is fairly intense, with industry growth between 3% and 5%.
Edible Oil Margin Volatility
Edible oil business margins are subject to mark-to-market accounting at quarter-end, leading to performance evaluation challenges and potential variations.
Raw Material Price Variation
Raw material pricing plays a crucial role in business verticals like biscuits and ghee, leading to certain degree of margin variation.
Competition from New-Age Brands
Competition exists from new-age companies in the product innovation side, requiring the company to be nimble and responsive.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Overall financial performance and segment growth are primarily compared Year-on-Year (YoY) by management. However, sequential (QoQ) growth is also highlighted for FMCG and ghee, indicating its relevance for assessing recent momentum and seasonal impacts.
Overall Revenue Growth
Company delivered highest ever revenue from operations of Rs. 10,483.71 crores in Q3 FY26, registering year-on-year growth of 16.53%.
FMCG Revenue Growth
FMCG segment quarterly revenue stood at Rs. 3,248 crores, reflecting 38.93% year-on-year growth and a sequential growth of 12.31%.
Edible Oil Revenue Growth
Edible oil segment quarterly revenue stood at Rs. 7,335.71 crores, registering 8.98% year-on-year growth.
Overall EBITDA Margin
Total EBITDA, excluding exceptional items for Q3 FY26, stood at Rs. 492.06 crores with a margin of 4.69%.
Long-term Food Business Targets
Management projects long-term growth rate of 8-10% and EBITDA margin of 8-10% for the food business.
Long-term HPC Business Targets
Management targets 15% growth for the high-margin HPC business, aiming for 25% EBITDA margin on a sustainable basis.
Edible Oil Business Targets
Management targets 3-4% volume growth and 2-4% EBITDA margin for the edible oil business.
Overall Margin and Mix Objective
Company objective is to achieve a 50-50 revenue split between edible oils and non-edible oils, leading to a double-digit overall EBITDA margin.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| FMCG Revenue Contribution | 30.68% of total revenue in Q3 FY26 | Consistent increase towards the stated objective of 50% of total revenue. |
| HPC EBITDA Margin | 24.95% in Q3 FY26 | Sustained margin performance at or above 25% as targeted by management. |
| Oil Palm Area Under Cultivation | 108,164 hectares | Successful addition of 40,000 hectares in FY27 as per management's target. |
| Dental Care Growth Rate | Rs. 116 crores YoY growth in Q3 FY26 | Continued outperformance of the industry's 3-5% growth rate. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
42NeutralSMA20 -13.5% / mo · near 52W low
Technical chart
PATANJALIweekly · 3Y-77.4%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 22. Wait for confirmation.
- SMA20 falling (~15.6% over last month) — short-term momentum negative.
- RSI(14) at 22 — oversold zone; bounce conditions.
- MACD above signal but histogram contracting — bullish momentum cooling.
- Within 5% of 52-week low — testing support.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 67.5%.
- Balance sheet contributes 12/15 to the score.
- Growth contributes 14/25 to the score.
Main drags
- Cash flow is weaker at 3/10; verify the latest quarterly trend.
- Valuation is weaker at 16/30; verify the latest quarterly trend.
- Quality is weaker at 11/20; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +22 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 79th percentile of the scored universe and 80th percentile within Consumer. Main check: cash conversion is weak at 52/100.
High Trust Lite: Promoter holding is 68.3%. Key concern: Operating cash flow is negative at ₹-333 Cr.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Consumer: 80th pctile, median 67 · Mid: 49th pctile, median 76
78 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 68.3%.
- ▸Promoter pledge is zero.
- ▸6 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸Operating cash flow is negative at ₹-333 Cr.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 22.70
- P/B
- 3.50
- EV/EBITDA
- 24.22
- Market Cap
- 45668.00Cr
Profitability
- ROE
- 16.50%
- ROCE
- 12.00%
- ROA
- 9.65%
- Dividend Y
- 0.83%
Growth (CAGR)
- Revenue 5Y
- 9.86%
- EPS 5Y
- 47.24%
- Revenue 3Y
- 7.00%
- EPS 3Y
- 7.00%
Balance Sheet
- Debt/Equity
- 0.21
- Interest Coverage
- 13.48×
- Altman Z
- 8.46
- Book Value
- 120.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 6/5
- OCF
- -333.00 Cr
- EPS TTM
- 16.68
Shareholding
- Promoter Hold
- 68.25%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 5%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.