Patanjali Foods Limited: A Wholesome Growth Story in Q2 FY26

Patanjali Foods Limited has delivered its strongest ever quarterly and half-yearly performance for Q2 and H1 FY26, showcasing robust operational execution and strategic clarity. The company's revenue from operations for Q2 FY26 stood at an impressive ₹9,798.84 crore, marking a significant year-on-year growth of 20.95%. This stellar top-line performance was complemented by a total EBITDA of ₹603.32 crore, reflecting a 22.17% year-on-year growth, with an EBITDA margin of 6.13%. The PBT margin for the quarter was 5.13%. For the first half of FY26, the company reported a revenue of ₹18,564 crore, with a total EBITDA of ₹937.50 crore and a PAT of ₹697.09 crore. This growth underscores Patanjali Foods' deepening market presence and its agile response to evolving consumer behavior patterns.

The company's strategic reclassification of its segments has been a pivotal move this quarter. The earlier Food and Other FMCG and HPC categories have now been consolidated into a unified 'FMCG' segment. This realignment aims to better reflect the integrated nature of Patanjali's portfolio and its long-term growth priorities. The HPC segment, in particular, was integrated into the company effective November 1, 2024. In Q2 FY26, the FMCG segment contributed ₹2,914 crore to the revenue, representing 29.44% of the total revenue from operations, excluding inter-segment revenue. The management's ambition is to steadily increase this contribution to 50% of total revenue in the coming years, expecting this segment to eventually drive 75% of the company's profits.

The Edible Oils segment remains a cornerstone of Patanjali Foods' business, contributing ₹6,971 crore in Q2 FY26. Despite a challenging environment marked by a 35% year-on-year increase in palm oil prices, branded edible oils like Ruchi Gold, Mahakosh, and Sunrich posted impressive double-digit year-on-year growth, driven by strong marketing and deep market penetration. The EBITDA margin for the edible oils portfolio stood at 3.53%. The Oil Palm Plantation segment also demonstrated robust growth, with revenue reaching ₹599.43 crore and an EBITDA margin of 24.16%. A significant milestone was achieved in September 2025, with the area under cultivation crossing 1 lakh hectares, specifically 1,00,997 hectares, out of a total allocated area of 6.63 lakh hectares. The majority of these plantations are now in the high-yielding age group, promising future growth.

The company's focus on innovation and market responsiveness is evident in its new product launches and strategic initiatives. In the nutraceuticals segment, Patanjali introduced Renal Health Care solutions, including specialized formulations, which have shown positive initial traction. The biscuits and confectionary category also performed exceptionally well, with revenue of ₹499.91 crore in Q2 FY26, driven by healthy sales momentum. The 'Doodh' brand biscuits, a ₹1,000 crore brand, registered sales of ₹360.51 crore. Furthermore, the advent of GST rate rationalization is expected to positively impact nearly 55% of the FMCG portfolio, with approximately 85% of the overall portfolio now in the 5% GST bracket. This is anticipated to spur stronger volume growth, particularly in price-sensitive categories, leading to a projected 300 to 400 basis points increase in volumes over the coming months.

Patanjali Foods Limited's Q2 FY26 performance reflects a company in a strong growth trajectory, underpinned by strategic reclassification, robust brand building, and an expanding agricultural footprint. The management's clear vision to elevate the FMCG segment's contribution, coupled with ongoing investments in technology and sustainable practices like renewable energy, positions Patanjali Foods for sustained growth and enhanced profitability in the Indian market.