Patanjali Foods Shares Rally 16.5% Over Four Sessions Amid Strong Q1 Earnings
Patanjali Foods shares rose for a fourth straight session on Wednesday, September 23, climbing as much as 16.5% to an intraday high of ₹412.90 on the BSE. The Haridwar‑based fast‑moving consumer goods company has seen a steady upward trend over the past four trading days, with the latest session marking a significant gain in the market. Investors noted the company’s performance amid broader market movements and sectoral optimism.
Jefferies, a global investment firm, issued a note affirming confidence that Patanjali Foods will achieve the higher end of its edible oil margin guidance of 4% and sustain 18‑20% margins in the home and personal care segment. The firm highlighted the company’s management comments on near‑term rural demand softness while expecting a festive‑led recovery driven by resilient urban demand. Despite sunflower oil supply disruptions and commodity inflation, the company has maintained its FY27 growth guidance of 4% volume for edible oil, 8‑10% for foods and 15% for home and personal care.
Chief Executive Officer Sanjeev Asthana told CNBC TV18 that the company remains optimistic about urban demand but cautions that rural demand is softer. He said the firm is entering the peak season, with Pay Commission enthusiasm contributing to a broader sense of positivity in the markets. Asthana added that the food business is expected to grow 8‑10%, biscuits are performing well, and the nutraceuticals segment is picking up, reflecting diversified growth within the portfolio.
Patanjali Foods reported a first‑quarter net profit surge of 87%, rising to ₹336 crore from ₹180 crore year‑on‑year. Revenue from operations increased 29% to ₹11,337 crore compared with ₹8,766 crore in the same period last year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed 69% to ₹543 crore, with the EBITDA margin improving by 110 basis points to 4.8%. These figures underscore robust operational performance amid rising input costs.
As of 11:19 am, Patanjali Foods shares traded 1.75% higher at ₹41155, outperforming the NIFTY LARGEMIDCAP 250 index which was up 0.45%. The rally reflects investor confidence in the company’s guidance and recent earnings. The article is written purely for informational purposes and should not be considered investment advice. Securities mentioned are illustrative and not recommendations; investors are advised to consult a financial adviser before making any investment decisions.