PATANJALI FOODS SHARES RALLY ON GROWTH OUTLOOK

Patanjali Foods shares extended their recent rally on September 21, rising more than 6% after the company’s management expressed confidence in its FY27 growth prospects, particularly across its FMCG and edible oils businesses, while also projecting strong free cash flow generation. The stock gained 6.5% in late-morning trading, taking its four-session advance to around 15%. Despite the recent recovery, Patanjali Foods remains down nearly 30% so far in 2026, compared with a 10.7% decline in the Nifty 50. The company’s market capitalisation stood at around Rs 42,300 crore. Patanjali Foods CEO Sanjeev Asthana said the company expects its FMCG business to grow 18–20% in FY27, while the foods segment is projected to expand 8–10%. Edible oils are expected to grow by more than 4%. Asthana said the company remains confident of achieving its FY27 targets and expects to generate free cash flow of Rs 700–800 crore during the year. Addressing concerns around the business, Asthana said there were no regulatory issues related to the company’s foods operations. He also clarified that no loans had been raised against the promoters’ 38% stake in the company. The optimistic outlook follows a strong performance in the June quarter. Patanjali Foods reported an 86% year-on-year jump in consolidated net profit to Rs 335.7 crore, while revenue from operations increased 29%. EBITDA rose 69%, with the EBITDA margin improving to 4.8% from 3.7% a year earlier. The June quarter marked the company’s fourth consecutive quarter of record revenue, adding to investor optimism around its growth trajectory.