What is Behind Patanjali Foods Ltd's 31% YoY Profit Drop?
Click to start listening
Synopsis
Patanjali Foods Ltd reported a significant 31% decline in net profit for Q1 FY26, amounting to Rs 180.35 crore. Despite this, their revenue has risen by 19%. The company continues to expand its international market presence, exporting to 16 countries. What does this mean for its future?
Key Takeaways
- Patanjali Foods' net profit fell by 31% YoY.
- Revenue increased by 19% to Rs 8,912.69 crore.
- Expenses surged YoY but decreased sequentially.
- Ramdev re-appointed as Non-Executive Non-Independent Director.
- The company's products are in demand internationally.
Mumbai, Aug 14 (NationPress) Patanjali Foods Limited has reported a net profit of Rs 180.35 crore for the first quarter of the financial year 2026 (Q1 FY26), reflecting a 31% decline compared to the same period last year, as indicated in an exchange filing on Thursday.
Last year, the Baba Ramdev-led company recorded a net consolidated profit of Rs 262.72 crore in Q1.
The filing further reveals that the profit for the FMCG sector decreased by over 49% sequentially from Rs 358.51 crore in the previous quarter.
Despite the profit decline, total income for the quarter increased by 19% to Rs 8,912.69 crore, up from Rs 7,202.35 crore during the same quarter last year. However, net income fell quarter-on-quarter from Rs 9,744.73 crore in Q4 FY25.
For the April-June quarter, Patanjali Foods' total expenses were Rs 8,664.13 crore, which is a significant rise from Rs 6,843.38 crore year-on-year, yet it showed a decrease from Rs 9,286.26 crore sequentially.
The filing also noted that the company’s board has re-appointed Ramdev as a Non-Executive Non-Independent Director of Patanjali Foods Limited, pending shareholders' approval.
The company stated, "In the food and other FMCG sector, our products are experiencing robust demand in international markets, leading to exports to 16 countries this quarter, including ghee, biscuits, juices, and textured soya protein, among others."
On the stock market, the company's shares closed down at Rs 1,758.90, a 2.15% decline on the NSE.
This year, the stock has struggled, dropping over 2% thus far, with a nearly 3% decrease in the last five sessions, although it has gained over 5% in the past 30 days.
Point of View
I observe that while Patanjali Foods Ltd has faced a significant decline in net profit, the rise in revenue indicates a strategic focus on market expansion. Their ability to maintain demand for products overseas shows resilience in their business model, which could bode well for future performance.
NationPress
05/10/2025
Frequently Asked Questions
What caused the decline in Patanjali Foods' net profit?
The decline in net profit by 31% year-on-year can be attributed to increased expenses despite a rise in total income.
How did Patanjali Foods perform in terms of revenue?
Patanjali Foods reported a 19% increase in revenue, reaching Rs 8,912.69 crore for Q1 FY26.
What are the future prospects for Patanjali Foods?
The company is expanding its international market presence, exporting to 16 countries, which could enhance future growth.
