Patanjali Foods Q3 profit slips 26% on rising costs; margins taper; revenue up 17%

Baba Ramdev-helmed Patanjali Foods Ltd on Wednesday (February 11) reported a net profit of ₹364.2 crore for the third quarter, down 26% from ₹491.2 crore in the year-ago period. Revenue for the quarter rose 16.5% to ₹10,483 crore, compared with ₹8,997 crore in the corresponding period last year.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 22.2% to ₹433.4 crore, from ₹557.4 crore in the same quarter last year. EBITDA margin shrank to 4.1%, down from 6.2% in the year-ago

period.

The FMCG segment, which includes food, FMCG, and home & personal care products, recorded combined sales of ₹3,248.35 crore, growing 38.93% YoY and 12.31% quarter-on-quarter. The edible oil segment posted revenue of ₹7,335.71 crore, up 8.98% YoY and 5.22% QoQ.

Gross profit for the quarter stood at ₹1,421.32 crore, with a margin of 13.56%, while profit before tax margin stood at 3.46%. For the nine months ending December 31, 2025, revenue from operations reached ₹29,013.98 crore, with total EBITDA of ₹1,429.56 crore and margins at 4.93%. The FMCG segment contributed 28.30% of revenue and 62.34% of EBITDA during this period.

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The company’s export revenue for Q3FY26 was ₹64.71 crore, with nine-month export revenue at ₹155.74 crore, reaching 36 countries. Advertising and sales promotions accounted for approximately 2% of quarterly revenue. The wind turbine power generation segment generated ₹4.27 crore in revenue during the quarter.

On the agricultural front, the oil palm plantation area reached 1,08,164 hectares as of December 2025. Palm oil prices declined 12.63% YoY and 3.7% QoQ during the December quarter, while palm oil imports dropped 20% and soybean oil imports rose 20.23%. Moderation in inflation was supported by falling vegetable and fuel prices and favourable base effects.

FMCG

In Q3FY26, Patanjali Foods’ FMCG segment reported revenue of ₹3,248.35 crore, growing 38.93% year-on-year and 12.31% quarter-on-quarter. The segment contributed 30.68% to revenue from operations (excluding inter-segment revenue) and 66.33% of EBITDA (excluding unallocable income) for the quarter. EBITDA for the FMCG segment stood at ₹353.45 crore, with a margin of 10.88%, reflecting operational efficiency and disciplined cost management.

Within FMCG, the biscuits business recorded revenues of ₹490.11 crore, up 26.44% YoY. Input costs remained under pressure, with sugar prices rising both YoY and sequentially, while milk prices were higher YoY but stable QoQ. In the first nine months of FY26, revenues from the biscuit brand Doodh crossed ₹1,000 crore, surpassing full-year FY25 levels. Nariyal biscuits also showed promising growth.

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The revised Ghee strategy delivered strong results, with revenues of ₹467.64 crore in Q3FY26, up 46.50% YoY and 21.03% QoQ, driven by festive and winter-season demand. Staple products continued healthy performance, generating ₹1,255.67 crore in revenue. Textured Soya Products reported revenue of ₹121.40 crore for the quarter, reflecting seasonal impact.

Other FMCG categories contributed as follows: Dental Care generated ₹339.27 crore, Skin Care ₹155.74 crore, Home Care ₹77.73 crore, and Hair Care and other products ₹54.78 crore.

Edible Oil

The Edible Oil segment posted revenue of ₹7,335.71 crore, up 8.98% YoY and 5.22% sequentially. Branded edible oils accounted for approximately 85% of total sales and continued to drive growth. Segmental EBITDA was ₹175.16 crore, with margins of 2.39%. Leading branded products, including Ruchi Gold, Mahakosh, and Sunrich, recorded double-digit growth in sales value during 9MFY26.

Despite volatility in pricing, the company focused on operational efficiencies and backward integration to protect margins. As of December 31, 2025, the oil palm plantation area reached 1,08,164 hectares, with around 39% in the prime yielding phase (7–25 years). The total allocated area stood at 6.63 lakh hectares.

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Rural demand continued to outpace urban demand for the seventh consecutive quarter, though urban FMCG growth rebounded in October. The company expects strong demand for the remainder of FY26, supported by macroeconomic tailwinds, GST 2.0 reforms boosting consumption, easing urban inflation, positive taxation measures, and favourable rural conditions from Kharif output, lower inflation, and welfare schemes.

Shares of Patanjali Foods Ltd ended at ₹520.30, down by ₹2.10, or 0.40%, on the BSE.

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