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Patanjali Foods Eyes 15% FMCG Growth Amid Rural Slowdown, Strong Urban Demand
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CNBC TV18•21-09-2026, 12:38
Patanjali Foods Eyes 15% FMCG Growth Amid Rural Slowdown, Strong Urban Demand
- •Patanjali Foods anticipates a 15% growth in its FMCG business, driven by robust urban demand despite a weakening rural market.
- •CEO Sanjeev Asthana noted that while rural demand has softened over the past 5-6 weeks, urban areas show strong optimism, especially with the upcoming peak season and Pay Commission enthusiasm.
- •The company expects its overall foods business to grow by 8-10%, with strong performance in biscuits, soya protein, and nutraceuticals.
- •Patanjali Foods projects edible oil growth to exceed 4%, an increase from previous guidance, due to lower domestic crop availability.
- •The company aims for positive free cash flow of ₹700-800 crore this year, a significant turnaround from negative operating cash flow in the prior fiscal year.
Key Questions Answered
Patanjali Foods remains confident of delivering around 15% growth in its FMCG business, driven largely by healthy urban demand heading into the peak season.
The company expects to generate around ₹700-800 crore in free cash flow this year following a negative operating cash flow previously, while edible oil volume growth is now expected to exceed 4% due to lower domestic crop availability.
CEO Sanjeev Asthana clarified that the reported promoter share encumbrance should not be viewed as traditional pledging against a loan, and noted that the company does not currently have a share buyback under consideration.
