Q1 2027 Patanjali Foods Ltd Earnings Call Transcript
Key Points
- Patanjali Foods Ltd (BOM:500368) delivered its fourth consecutive quarter of highest-ever quarterly revenues, with revenue from operations growing 29% year-on-year to INR11,337 crores.
- The edible oil segment achieved its highest-ever quarterly revenue of INR8,505 crores, driven primarily by mustard oil growth, with an EBITDA margin of 5.22%.
- The oil palm plantation business generated record quarterly revenue of INR740 crores, up 25% year-on-year, supported by government initiatives for self-reliance in edible oils.
- The FMCG segment showed strong performance, with biscuits revenue growing 27% year-on-year to INR560 crores and EBITDA margin expanding to 15.35% from 9.35% in the prior year.
- The company successfully navigated commodity price inflation by taking calibrated price increases in edible oils and leveraging long positions, which acted as a net positive for the business.
- New product launches, including Dant Kanti Sensitive toothpaste and summer beverages, are performing well, with a strong pipeline for future launches.
- The company is expanding its presence in e-commerce and quick commerce channels, aiming to increase contribution from 15% to 20% of overall revenue within 18 months.
- The acquisition of the home and personal care business was completed at a slump sale price of INR1,100 crores, which is less than 18 months of EBITDA, providing significant value to shareholders.
- The company faces challenges from delayed monsoon and geopolitical tensions, leading to commodity price inflation that raises input costs for FMCG businesses, weighing on profitability.
- Ghee sales were softer during the quarter, with revenue of INR219 crores, due to seasonal demand and lower offtake in export markets like the Middle East amid geopolitical disruptions.
- The staples category reported negative EBITDA of INR59 crores, impacted by inventory markdowns due to quality issues in pulses and higher input inflation.
- The company expressed caution about potential rural demand stress and food inflation due to El Niño effects, which could impact margins and demand in coming quarters.
- Packaging, freight, and logistics costs increased during the quarter, adding to input cost pressures across the portfolio.
- The textured soya product division, while growing, faces hyper-competition and limited ability to pass through sharp commodity price increases, potentially affecting margins.
- The company acknowledged that about 30-35% of new product launches do not perform as expected, requiring tweaks or reorientation, which could impact returns on innovation.
Ladies and gentlemen, good day and welcome to the Patanjali Foods Limited Q1 FY27 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements do not guarantee the future performance of the company and may involve risks and uncertainties that are difficult to predict. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Sanjiv Asthana, CEO, Patanjali Foods. Thank you, and over to you, sir.
Thank you, and good morning to everyone joining us today. A warm welcome to all of you on Patanjali Foods Limitedâs call to discuss the financial performance for Q1 FY27. I am accompanied by the companyâs CFO, Kumar Rajeshji, along with Mr. Priyendu Jha from Investor Relations, and our IR partners, the Strategic Growth Advisors.
The results collateral has been uploaded on
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
