Patanjali Foods Q2 profit falls 19% to ₹420 crore

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 Patanjali Foods Limited ( PATANJALI ) reported an 18.8% year-on-year decline in consolidated net profit to ₹419.76 crore in Q2 FY27. Revenue from operations increased 15.6% to ₹11,322.58 crore. What happened? EBITDA: Declined 22.9% to ₹425.63 crore. EBITDA margin: Contracted to 3.76% from 5.6%. Total expenses: Increased 17.7% to ₹10,997.51 crore. Edible oils: Revenue grew 22% to ₹8,532 crore. FMCG: Revenue increased marginally to ₹2,923 crore. The company attributed the pressure partly to rising inflation and higher input costs. Why does it matter? Edible oils drove overall revenue growth, while the FMCG business remained relatively subdued. More importantly, expenses grew faster than revenue, resulting in lower operating profitability. My view The revenue growth looks healthy, but the decline in EBITDA and margin contraction indicate that higher sales are not translating into better earnings. The FMCG segment also deserves attention because it contributes a meaningful share of the company's operating profitability. What I am watching next I would track raw material costs, edible oil margins, FMCG growth, operating efficiency and the company's ability to recover EBITDA margins. No Recommendations Source: Business Standard; Company filings Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in Patanjali Foods Limited.