Patanjali Foods lifts profit, but margin remains sixth-lowest among 45 peers
Revenue growth outpaced expenses and lifted operating margin year on year, while the quarter-on-quarter profit comparison was distorted by a prior tax benefit.
Filed 14 Aug 2026, 20:18 IST · after market close · Patanjali Foods Ltd (PATANJALI)
Key takeaways
- Consolidated revenue grew 27.39% YoY to Rs 11,337.45 cr, while expenses grew 25.83%, lifting operating margin by 1.18 percentage points.
- Net profit rose 86.14% YoY to Rs 335.73 cr, helped by a 1.52 percentage-point lower tax rate, while other income contributed only 0.98% of pre-tax profit.
- The stock initially gained 0.54% after the results but was down 0.57% five sessions later, broadly in line with its 1.44% median move after the past eight results.
Price around the results
Revenue growth outpaced costs in Q1FY27
Sequential momentum was modest, with revenue up 1.63% and expenses up 0.78%, which lifted operating margin by 0.80 percentage points. Operating margin has recovered from 3.99% in Q4FY26 but remains below the 5.63% recorded in Q2FY26.
Lower tax aided profit, while interest costs rose
Net profit growth of 86.14% YoY exceeded pre-tax profit growth of 82.33% because the tax rate fell by 1.52 percentage points to 25.92%. Other income was not a material profit driver at 0.98% of pre-tax profit. Interest costs increased 73.68% YoY and 14.97% QoQ, partly offsetting the operating improvement.
Margin remains well below the FMCG peer median
Patanjali Foods' 4.79% operating margin was 11.31 percentage points below the 16.10% median for 45 Fast Moving Consumer Goods peers that had reported the quarter. The company ranked sixth from the bottom on this measure. The multi-quarter trend shows margin falling from 5.63% in Q2FY26 to 4.14% in Q3FY26 and 3.99% in Q4FY26 before the Q1FY27 recovery.
Initial market response was within the stock's usual range
The stock gained 0.54% on the first reaction day, after opening 1.42% higher, but was down 0.57% five sessions after the results. Across the past eight result reactions, it rose three times and fell five times, with a median absolute move of 1.44%, making the latest response relatively contained.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹11,337 cr | ₹11,156 cr | +1.63% | +27.39% |
| Other income | ₹4 cr | ₹-112 cr | — | -65.82% |
| Expenses | ₹10,794 cr | ₹10,710 cr | +0.78% | +25.83% |
| Operating profit | ₹543 cr | ₹445 cr | +21.99% | +69.16% |
| Operating margin (%) | 4.79% | 3.99% | — | — |
| Interest | ₹41 cr | ₹36 cr | +14.97% | +73.68% |
| Depreciation | ₹53 cr | ₹62 cr | -13.51% | -13.88% |
| Profit before tax | ₹453 cr | ₹236 cr | +92.33% | +82.33% |
| Tax | ₹117 cr | ₹-288 cr | — | +72.25% |
| Net profit | ₹336 cr | ₹524 cr | -35.93% | +86.14% |
| EPS (₹) | ₹3.09 | ₹4.82 | -35.89% | -37.95% |
Operating margin of 4.79% compares with a Fast Moving Consumer Goods sector median of 16.10% across 45 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.54% | +0.86% |
| Next session | -0.10% | — |
| 5 sessions | -0.57% | +0.03% |
Volume on the results session was 1.42× its 20-day average.
What to watch
- Whether operating margin holds above 4.79% after the Q1FY27 recovery.
- Whether interest expense moves below Rs 41.25 cr as revenue momentum continues.
- Whether the tax rate remains near 25.92% rather than the unusual negative rates reported in Q2FY26, Q3FY26 and Q4FY26.