Patanjali Foods Q2 FY27: Net Profit Falls 19% to ₹420 Crore Despite Revenue Growth

Patanjali Foods Ltd reported a 19% year-on-year decline in consolidated net profit for the second quarter of FY27, even as revenue increased by more than 15%. The company’s profit fell to ₹419.76 crore for the July-September 2026 quarter, compared with ₹516.69 crore in the corresponding period last year. Higher operating expenses and inflationary pressures affected profitability despite growth in its edible oils business and continued expansion of its FMCG portfolio.

Revenue from operations increased 15.55% to ₹11,322.58 crore from ₹9,798.84 crore a year earlier. However, total expenses rose approximately 18% to ₹10,997.51 crore, outpacing revenue growth. Operating EBITDA also declined, highlighting the pressure on margins. The results reflect a mixed performance for the company, with higher sales but weaker profitability during the September quarter.

Patanjali Foods Q2 FY27 Financial Results

The company’s latest quarterly performance showed a clear difference between revenue growth and profit generation.

Patanjali Foods generated total income of ₹11,406.49 crore during Q2 FY27, compared with ₹9,850.06 crore in the corresponding quarter of FY26.

However, consolidated net profit declined by ₹96.93 crore year over year. The increase in expenses contributed to the lower earnings.

Operating EBITDA, excluding exceptional items, stood at ₹425.63 crore, compared with approximately ₹552 crore in the year-ago quarter. Its operating EBITDA margin contracted to 3.76% from approximately 5.6%.

Patanjali Foods Q2 FY27 performance:

Financial metric	Q2 FY27	Q2 FY26
Revenue from operations	₹11,322.58 crore	₹9,798.84 crore
Total income	₹11,406.49 crore	₹9,850.06 crore
Net profit	₹419.76 crore	₹516.69 crore
Total expenses	₹10,997.51 crore	₹9,344.97 crore
Operating EBITDA	₹425.63 crore	Approx. ₹552 crore
EBITDA margin	3.76%	Approx. 5.6%

The figures indicate that higher sales did not translate into improved earnings because expenses increased faster than revenue.

Edible Oils Business Drives Revenue Growth

The edible oils segment remained Patanjali Foods’ largest revenue contributor during the quarter.

Revenue from the business increased approximately 22% year over year to ₹8,532.25 crore.

The segment includes branded edible oils and other related operations, supported by the company’s established distribution network and presence in India’s packaged cooking oil market.

Patanjali Foods sells edible oil products under brands such as Ruchi Gold, Mahakosh and Sunrich.

The company has been focusing on strengthening its distribution network and expanding its product portfolio to capture demand across different consumer segments.

However, the edible oils business also operates in a market influenced by international commodity prices, import costs and fluctuations in agricultural supply.

Changes in edible oil prices can affect both revenue and profitability, making cost management important for the segment.

The company is also expanding its upstream oil palm plantation business to strengthen its sourcing capabilities and reduce dependence on external supply over the longer term.

FMCG Business Records Marginal Revenue Growth

Patanjali Foods’ FMCG segment generated revenue of ₹2,923.48 crore during Q2 FY27, compared with approximately ₹2,923 crore in the year-ago period.

The business recorded only marginal year-on-year growth, despite continued efforts to expand its product portfolio and distribution reach.

Its key brands include Patanjali, Nutrela, Dant Kanti and Saundarya.

During the quarter, the company said products such as Doodh Biscuits, Nutrela, Saundarya and Dant Kanti maintained their growth momentum.

The FMCG business is an important part of Patanjali Foods’ strategy to diversify beyond edible oils and build a larger presence in packaged food, personal care and wellness categories.

However, the latest results show that growth across its FMCG operations remained relatively modest compared with the edible oils segment.

The company will need to increase consumer demand, strengthen brand visibility and expand distribution to improve the segment’s contribution to overall revenue and earnings.

Rising Expenses Put Pressure on Profitability

One of the biggest challenges during the September quarter was the increase in operating expenses.

Total expenses rose approximately 18% to ₹10,997.51 crore from ₹9,344.97 crore in Q2 FY26.

The faster increase in expenses compared with revenue contributed to the decline in operating profit and net earnings.

Patanjali Foods also highlighted stronger inflationary pressures during the quarter.

According to the company, retail inflation increased from approximately 4.45% in July 2026 to 4.82% in August and 5.54% in September.

Food inflation reached 7.7%, creating additional pressure on household budgets and consumer purchasing power.

The company also pointed to weaker rural sentiment amid deficient monsoon rainfall and El Niño conditions.

Although resilient non-farm rural activity continued to support household incomes, the company acknowledged that higher food prices affected the broader consumption environment.

For an FMCG company with exposure to edible oils and packaged consumer products, managing input costs while maintaining competitive prices remains an important challenge.

Festive Calendar Affects Quarterly Demand

Patanjali Foods also highlighted differences in the festive calendar between FY26 and FY27.

Navratri began in October in 2026, compared with September in the previous year. Additionally, Pitru Paksha during September deferred some festive-related purchases.

This affected the timing of consumer demand and revenue recognition across the two quarters.

The company said the shift in the festive calendar influenced demand patterns during the September quarter.

However, management expects the recent festive season and upcoming wedding season to support continued growth momentum.

Festive demand is important for categories such as packaged foods, biscuits, edible oils and personal care products, as consumers often increase purchases during celebrations and family gatherings.

The company’s ability to capture this seasonal demand could influence its performance in the second half of FY27.

First-Half FY27 Profit Increases Despite Weak Q2

Despite the decline in quarterly profit, Patanjali Foods reported higher earnings for the first six months of FY27.

Consolidated net profit increased to ₹755.49 crore during April-September 2026, compared with ₹697.05 crore in the corresponding period last year.

Total income also increased to ₹22,748.38 crore from ₹18,629.08 crore.

This indicates that the company’s first-half performance remained positive despite the weaker September quarter.

Financial metric	H1 FY27	H1 FY26
Total income	₹22,748.38 crore	₹18,629.08 crore
Net profit	₹755.49 crore	₹697.05 crore

The first-half figures suggest that growth in the earlier part of the financial year helped offset some of the pressure experienced during Q2.

What Patanjali Foods Management Said

Chief Executive Officer Sanjeev Asthana said the September quarter reflected the resilience of the company’s integrated business model across branded edible oils, upstream oil palm plantations and its growing FMCG portfolio.

He highlighted the continued performance of Doodh Biscuits, Nutrela, Saundarya and Dant Kanti, supported by the company’s diversified product range and distribution network.

Asthana also identified premiumisation, expansion of the edible oils and FMCG portfolios, and growth in oil palm plantations as important priorities.

The company intends to improve operational efficiency and strengthen its business fundamentals to support sustainable growth.

Management expects the recent festive season and upcoming wedding season to help maintain demand momentum.

The Bigger Picture

Patanjali Foods’ Q2 FY27 results highlight the challenges facing large consumer goods companies in an environment of rising input costs and uneven consumer demand.

The company continues to generate revenue growth, particularly through its edible oils operations. However, the decline in operating EBITDA and net profit shows that higher sales alone are not sufficient to improve financial performance.

Its long-term growth strategy depends on building a stronger FMCG portfolio, expanding oil palm plantations and improving operational efficiency.

For investors and industry observers, the key indicators in coming quarters will include profit margins, expense growth, FMCG performance and the company’s ability to convert higher revenue into stronger earnings.

Looking Ahead

Patanjali Foods expects demand momentum to continue following the festive season and into the upcoming wedding period. The company plans to focus on premiumisation, expanding its branded edible oils and FMCG businesses, and strengthening its upstream oil palm plantation operations. These initiatives are intended to support revenue growth while improving the quality of earnings.

The next few quarters will show whether the company can bring expense growth under control and restore its operating margins. Its ability to maintain consumer demand while managing commodity costs and inflationary pressures will be important in determining whether revenue growth translates into stronger profitability during the remainder of FY27.