As of , Patanjali Foods Ltd (FMCG - Foods) has a deep value score of 37/100 (rated Weak). Earnings are accelerating. 1Y return vs Nifty 500: -23%.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: FMCG EBITDA Contribution: 66.33%
Impact: 71% of total margin
“two thirds of the margin is now accruing from non-edible oil proportion. So nearly... the 71% margin... came from the FMCG segment”
What: Retail Reach: 2 million+ outlets
Impact: 0.2 to 0.25 million adds
“we added an estimated 0.2 million to 0.25 million new retail outlets and are now present at over 2 million retail outlets.”
What: HPC Pipeline: 3+ launches
“we are planning at least three more new product launches which will happen over the next 6 months in the skincare and some variations in the dental side”
What: FMCG segment revenue growth of 38.93% YoY.
“The quarterly revenue stood at Rs. 3,248 crores, reflecting 38.93% year-on-year growth and a sequential growth of 12.31%.”
What: 18% → 25%
“We had targeted that we will take that 18% by 200 basis points... we have been able to accomplish almost nearly 25% EBITDA in this quarter.”
Earnings deceleration risks from management commentary
Trigger: Tightening global vegetable oil supplies and seasonal shifts in India's import basket.
Management view: Marking down inventory to quarter-end pricing and shifting focus to branded oils (85% of sales).
Monitor: commodity
Trigger: Regulatory adjustments to labour costs during the quarter.
Impact: PAT impact: ₹30.19 Cr
Management view: Classified as an exceptional item to isolate from core operating performance.
Monitor: labor
Trigger: Rollout of GST 2.0 reforms in September and October.
Management view: Increased grammage in biscuits and transferred price benefits to consumers to stabilize inventory.
Monitor: regulatory
Key quotes from recent conference calls
“In light of the GST development, we anticipate a 300 to 400 basis points increase in volumes over the coming months [Previous Volume Growth (FMCG) guidance]”
“this is a stated intent that within four years’ time we will be 50:50. [Previous Revenue Mix guidance]”
“we typically would be able to pretty much make margins upwards of between 10% and 12% and could be higher as well. [Initiative: Premiumization of Biscuits]”
“On the cost front, the palm oil prices declined materially by 12.6% on a year-on-year basis, with a sequential moderation of 3.7% during the quarter. [Risk (commodity): HIGH]”
Headline numbers from the latest earnings call
Revenue
₹10,483.71 Cr
Why: Growth was driven by a robust rebound in urban consumption and the positive impact of the festive season including Diwali.
The company achieved its highest-ever quarterly revenue despite temporary trade disruptions in early Q3.
EBITDA
₹492.06 Cr
Why: Margins were impacted by the rollout of GST 2.0 reforms and a ₹30.19 crore exceptional item related to the labour code.
EBITDA excludes exceptional items; the reported margin reflects transition costs from GST repricing.
Other Highlights
• Highest ever 9-month revenue of ₹29,013.98 crores.
• Labour code impact of ₹30.19 crores classified as exceptional item.
• Branded edible oil sales reached 85% of total segment sales.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
FMCG Revenue Growth (YoY)
38.93%
Why: Driven by strong performance in staples and biscuits.
Branded Edible Oil Share
85%
Why: Strong marketing initiatives and brand endorsements.
Staples Revenue Growth (YoY)
68.70%
Why: High demand during the festive season.
Biscuit Revenue Growth (YoY)
26.4%
Why: Distribution expansion and natural velocity.
HPC EBITDA Margin
24.95%
Why: Price benefits from advertisements and lower-priced raw materials.
Oil Palm Plantation EBITDA Margin
22.47%
Why: Seasonal shift into leaner months.
Total Retail Outlets
2 million+
Why: Intensifying efforts to strengthen distribution in core markets.
Oil Palm Area Under Cultivation
1,08,164 hectares
Why: Strategic expansion of plantation activities.
Forward-looking targets from management for Long-term
OPM Guidance
8–10%
₹20,000 crores
REAFFIRMED
REAFFIRMED
Guidance Changes
HPC EBITDA Margin: 18% → 25%
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +17% | +7% | Decelerating |
| PAT (Net Profit) | +60% | +80% | Inflection Up |
| OPM | 4.0% | -200 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Patanjali Foods Ltd has a deep value score of 37/100 (rated Weak). This score is calculated from three components
Patanjali Foods Ltd's quarterly profit (PAT) growth trajectory
Patanjali Foods Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
Patanjali Foods Ltd's earnings momentum is Accelerating — profit growth is speeding up.
Patanjali Foods Ltd's valuation metrics
Patanjali Foods Ltd's revenue and margin trends
Patanjali Foods Ltd's trailing twelve month (TTM) performance
Patanjali Foods Ltd key facts
Patanjali Foods Ltd shows limited deep value signals currently — score is 37/100 (Weak). Monitor for improvement.
FMCG - Foods deep value sector overview
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
Patanjali Foods Ltd has 5 key growth catalysts identified from recent earnings analysis
Patanjali Foods Ltd has 3 key risks worth monitoring
In Q3 FY26, Patanjali Foods Ltd's management highlighted
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
