Patanjali Foods Ltd Q1 FY27 Results Analysis: PAT Nearly Doubles, FMCG Revenue Surges 35.4%

Patanjali Foods Ltd reported Q1 FY27 numbers with revenue of Rs. 11,337.45 Cr (+29.33% YoY) and PAT growth of +86.18% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Patanjali Foods delivered a record Q1 with revenue up 29% YoY to Rs.11,337 Cr and PAT nearly doubling. The edible oil segment's EBITDA margin of 5.22% exceeded its 2-4% guidance, while FMCG revenue grew 35.4% vs 8-10% guidance. Management's full-year guidance appears conservative; the company is on track to exceed its 12-15% EBITDA growth target.

Key Investment Insights

Key Positives

• Revenue reached a record Rs.11,337.45 Cr, up 29.33% YoY, marking the fourth consecutive quarterly record.
• EBITDA margin expanded 102 bps YoY to 4.83%, driven by edible oil margins surging to 5.22% (above 2-4% guidance).
• PAT nearly doubled to Rs.335.86 Cr, up 86.18% YoY.
• FMCG revenue grew 35.39% YoY, materially exceeding the 8-10% guidance.
• Credit rating upgraded to AA- (Stable) by ICRA.

Risk Factors

• FMCG EBIT margin compressed from 8.76% in Q1FY26 and 9.56% in Q4FY26 to 5.91%, due to input and packaging cost inflation.
• Finance costs rose 73.62% YoY to Rs.41.25 Cr, reflecting higher working capital borrowings.
• Other expenses grew 26.23% YoY and 10.88% QoQ, with unallocable net costs spiking to Rs.93.23 Cr from Rs.5.07 Cr QoQ.