Patanjali Foods reports muted rural demand amid inflation, banks on wedding season and winter demand for H2 growth

Patanjali Foods has seen relatively muted demand in rural markets amid rising inflation, while urban markets have remained more resilient, the company said during its post-earnings conference call.

The company expects festive-season momentum, the upcoming wedding season and winter demand to support consumption across its product categories in the second half of FY27.

The company said inflation rose through the September quarter, with food inflation reaching 8.94% in October. Wheat prices also moved above year-ago levels in September, while sugar, milk procurement, soybean and crude-linked input costs, along with freight and logistics expenses, increased during the quarter.


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Patanjali Foods expects commodity inflation to continue in the near term and is managing the pressure through sourcing discipline, product mix and calibrated pricing.

The company reported revenue from operations of Rs 11,323 crore in the September quarter, up 16% year-on-year. First-half revenue reached a record Rs 22,660 crore, up 22%, while operating EBITDA stood at Rs 969 crore.

Its edible oils business recorded its highest-ever quarterly revenue of Rs 8,532 crore, up 22% year-on-year, with an EBITDA margin of 3%. First-half revenue stood at Rs 17,037 crore, up 25%. Soybean, rice bran, sunflower and groundnut oils performed well, while mustard oil remained seasonally weaker.

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The government’s September 24 decision to reduce the effective import duty on crude palm and soybean oils from 16.5% to 11%, and on crude sunflower oil from 16.5% to 5.5%, is expected to support affordability. Palm oil accounts for nearly half of the company's edible oils portfolio. Patanjali Foods said it was passing on the benefit to consumers under its pass-through model.

The company's FMCG business reported revenue of Rs 2,923 crore in the quarter, with an EBITDA margin of 7.57%. Revenue for the first half of FY27 stood at Rs 5,861 crore, up 15% year-on-year.

The biscuit segment reported its highest-ever quarterly revenue of Rs 638 crore, up 28% year-on-year. First-half revenue also rose 28% to Rs 1,198 crore. Doodh biscuits, a brand with annual revenue of more than Rs 1,300 crore, continued to anchor the portfolio, while the premium range gained traction. Almond and raisin cookies, along with atta fruit and nut and kaju pista variants, received an encouraging consumer response.

Extruded soya products generated revenue of Rs 186 crore in the quarter, with volume growth of 16% year-on-year. First-half revenue stood at Rs 345 crore, up 15%. Ghee revenue was Rs 306 crore in the quarter and Rs 525 crore in the first half, while other food categories, including honey, dry fruits, spices, condiments and herbal products, contributed Rs 197 crore during the quarter.

The home and personal care business reported revenue of Rs 714 crore in the September quarter, up 11% year-on-year. First-half revenue rose 13% to Rs 1,343 crore. Within the segment, dental care generated revenue of Rs 378 crore in the quarter, skincare Rs 188 crore, home care Rs 91 crore and hair care Rs 55 crore.

The oil palm plantation business generated revenue of Rs 742 crore during the quarter. Its cultivated area stood at 1.27 lakh hectares as of September 30, against a total allocated area of 6.63 lakh hectares. The company said the maturing plantation base is expected to support production and profitability over the coming years.

Patanjali Foods also said modern trade, e-commerce and quick commerce were gaining share relative to traditional trade. It plans to improve product assortment, visibility and availability on leading platforms while continuing to invest in general trade, which remains a key part of its distribution network.