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Patanjali Foods Shares Soar 6% as Management Confirms FY27 Growth Targets
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Moneycontrol•21-09-2026, 11:51
Patanjali Foods Shares Soar 6% as Management Confirms FY27 Growth Targets
- •Patanjali Foods shares jumped over 6% on optimistic FY27 growth projections for FMCG and edible oils, and strong free cash flow forecasts.
- •CEO Sanjeev Asthana expects FMCG to grow 18-20%, foods 8-10%, and edible oils over 4% by FY27, with Rs 700-800 crore free cash flow.
- •Urban demand is strong, but rural demand is a concern due to poor monsoon; over 90% of India's sunflower oil imports are currently stuck.
- •The company reported an 86% surge in Q1 FY27 net profit to Rs 335.7 crore and a 29% revenue increase to Rs 11,337.5 crore.
- •Recent gains also follow the Delhi High Court quashing Income Tax Appellate Tribunal orders against Patanjali Ayurved.
Key Questions Answered
Patanjali Foods management expects its FMCG business to grow by 18-20 percent, the foods business by 8-10 percent, and edible oils to register growth of over 4 percent in FY27, alongside generating free cash flow of Rs 700-800 crore.
During Q1 FY27, Patanjali Foods reported an 86 percent surge in consolidated net profit to Rs 335.7 crore and a 29 percent rise in revenue from operations to Rs 11,337.5 crore, marking its fourth consecutive quarter of record revenue.
While urban demand remains strong, management is less optimistic about rural demand due to a poor monsoon. Additionally, more than 90 percent of India's sunflower oil imports are currently stuck, presenting a major supply challenge.
