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 net profit rose 86.14% year on year to Rs 335.73 cr, while EPS fell 37.95% to Rs 3.09.
- Operating margin improved 1.18 percentage points year on year as revenue growth of 27.39% exceeded expense growth of 25.83%.
- At 4.79%, operating margin was 11.31 percentage points below the 16.1% median of 45 reported FMCG peers.
Price around the results
Revenue growth translated into higher operating profit
Patanjali Foods reported consolidated revenue growth of 27.39% year on year, with expenses increasing 25.83%; that operating leverage lifted operating profit 69.16%. Sequentially, revenue rose 1.63% while expenses increased 0.78%, raising operating margin by 0.8 percentage points. Other income contributed only 0.98% of pre-tax profit, so reported profit was not materially dependent on this line.
Profit rose year on year, but the sequential comparison is tax-distorted
Pre-tax profit increased 82.33% year on year, helped by the wider operating margin, despite interest expense rising 73.68%. The tax rate fell 1.52 percentage points year on year to 25.92%, providing a modest additional lift to net profit. Net profit fell 35.93% sequentially because the previous quarter included a negative tax rate of -122.35%, whereas the current quarter had a normal positive tax charge.
Margin recovered from Q4FY26 but remains below the recent peak
Operating margin improved from 3.99% in Q4FY26 to 4.79%, ending two consecutive quarters of decline from the 5.63% recorded in Q2FY26. The margin remains well below the 16.1% median for 45 FMCG peers that have reported, placing Patanjali Foods sixth from the bottom.
No immediate market reaction after the late filing
The consolidated results were filed after market close, so there is no current market reaction to assess. In the stock's eight prior result reactions, it rose three times and fell five times, with a median absolute move of 1.44%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| 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.
What to watch
- Whether operating margin holds above 4.79% after the sequential recovery.
- Whether interest expense growth of 73.68% year on year moderates.
- Whether EPS recovers from Rs 3.09 without another large tax distortion.