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Informist, Monday, Aug. 17, 2026

 

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--Patanjali Foods: Monsoon, West Asia war drove commodity prices up in Q1
--CONTEXT: Comments by Patanjali Foods mgmt in post-earnings analyt concall 
--Patanjali Foods: Took calibrated price hikes in edible oil segment 
--Patanjali Foods: Cautious on staple sales due to El Nino, rural demand 
--Patanjali Foods: Target FMCG revenues growth 10-12% in FY27 
--Patanjali Foods: Aim sales growth from quick commerce, e-commerce in 18 mos

 

By Avishek Rakshit and Shruti Nair

 

KOLKATA/MUMBAI – Patanjali Foods Ltd. is eyeing a 10-12% on-year top line growth from its fast-moving consumer goods business in the ongoing financial year to nearly INR 125 billion, even as the company remains cautious on rural demand for its staples portfolio, a senior company official said on Monday.

 

"Our total sales from FMCG overall was, including the HPC (home and personal care products), INR 11,000 crores plus (more than INR 110 billion), and this year, my estimation is that we should certainly increase it by 10% plus. And we should be somewhere closer to INR 12,500 crores (INR 125 billion) in our revenues," Sanjeev Kumar Asthana, chief executive officer at Patanjali Foods, told sector analysts in its post-earnings call.

 

Fast-moving consumer goods products usually account for around 28% of the company's top line before making adjustments like inter-segmental revenue. In the June quarter, Patanjali Foods' revenue from the consumer goods business increased over 35% on year to over INR 29 billion.

 

The company, which increased prices and introduced smaller pack sizes for its edible oils portfolio in the June quarter due to cost pressures, is banking on e-commerce and quick commerce channels for faster growth in its consumer goods and edible oil sales. The war in West Asia, which ushered in global commodity price volatility, led Patanjali Foods to incur higher costs, in tune with industry trends, which were passed onto consumers.

 

"Right now (we) do close to about 15% (contribution) between modern trade and e-commerce, quick commerce. We want to take that number up to 20%. And I'm confident that over the next 18 months, we will see our numbers reaching 20% of the overall revenue through these channels," Asthana said. 

 

However, the official is cautious about rural demand being negatively impacted, and, hence, demand for its staples products, which is part of its consumer goods portfolio, on account of erratic monsoons arising from the El Nino phenomenon. The company earned over INR 10 billion from sales of staples in the June quarter, which made for over 34% of its revenues from the consumer goods business.

 

"One is that this El Nino impact is still very unclear in the way how markets are going to react, both on the production side and the availability side. And a very direct impact of that could be on the food inflation, which is the number one," he said. "Number two is that the rural incomes and the rural market demand side, we have to watch with great deal of care as to how they play out."

 

Although the company sells its products across the country in metros, cities and rural areas, Patanjali Foods largely depends on rural demand where its consumer goods products find more traction. Hence, the company closely monitors rural demand, which is a key determinant of its revenues. 

 

In the June quarter, retail inflation edged higher, rising from 3.48% in April 2026 to 3.93% in May and 4.38% in June 2026. This is the sharpest rise in six months, as food inflation accelerated to 5.32% in June from 4.78% in May, the company said in a statement while declaring its June quarter results. 

 

Rural inflation had outpaced urban inflation during the June quarter, even as rural consumption broadly continued to outpace urban markets, extending a multi-quarter trend visible across the consumer goods sector. 

 

At 1114 IST, shares of Patanjali Foods traded slightly higher at INR 352.15 on the National Stock Exchange. For the June quarter, Patanjali Foods reported a net profit of INR 3.36 billion on revenues of INR 113.37 billion.  End

 

Edited by Deepshikha Bhardwaj

 

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