Thank you, and good morning to everyone. A very warm welcome to Patanjali Foods Limited's call to discuss the results for the third quarter and nine months ended FY26.

I am joined by the company's CFO, Kumar Rajesh ji, along with Mr. Priyendu Jha from the investor relations team, and our IR partners, Strategic Growth Advisors.

We have uploaded the results collateral on the stock exchanges as well as the company's website for your reference. Let me begin by giving a quick snapshot of our financial performance.

During the course of this call, we will be referring to standalone financials. During Q3 of FY26, the company delivered a highest ever revenue from operations of ₹10,483.71 crores, registering year-on-year growth of 16.53%.

The total EBITDA, excluding the exceptional items for the quarter, stood at ₹492.06 crores with a margin of 4.69%, while profit before tax was ₹364.54 crores, translating into a PBT margin of 3.46%. Please note the impact of labor code during Q3 stood at ₹30.19 crores.

This has been classified under the exceptional items. The company also delivered the highest ever revenue from operations for the nine months of FY26 with reported revenue from operations amounting to ₹29,013.98 crores.

Total EBITDA, excluding exceptional items for the period, was ₹1,429.56 crores with the margin of 4.93%, and profit before tax stood at ₹1,118.24 crores, translating into a PBT margin of approximately 3.84%. Let me now give an overview of the operating environment of Q3 FY26.

Q3 FY26 was a period of transition and execution, largely influenced by the rollout of GST 2.0 reforms. Months of September and October experienced temporary trade disruptions due to repricing actions, packaging updates, and operational adjustments.

By November, inventory levels began to stabilize. During the quarter, we introduced higher grammage packs, revised pricing to pass on the GST-related benefits to consumers.

We anticipate a stronger volume recovery ahead, with the positive effects of GST rate reductions expected to become more evident in the upcoming quarters. The rural consumption continues to outperform urban demand for the seventh straight quarter.

However, we are now seeing a robust rebound in the urban consumption as well, supported by rising disposable incomes, particularly benefiting the key food categories and the positive impacts from revised direct and indirect taxation measures. The quarter was also benefited from the festive season, with Diwali acting as a key demand catalyst across categories.

Festive-led purchases were supported by positive consumer sentiment, while the GST-led price corrections improved affordability and further supported. On the cost front, the palm oil prices declined materially by 12.6% on a year-on-year basis, with a sequential moderation of 3.7% during the quarter.

In December '25, the palm oil imports were down 20%, while soybean oil imports increased by 20.2%, reflecting a shift in the edible oil basket. Looking ahead, the pricing pressures are expected to persist amid tightening global vegetable oil supplies.

Wheat prices remained range-bound with no significant movement, supported by comfortable supply levels in the physical markets. The government's intervention schemes continued to effectively cap price increases.

During Q3, sugar prices stayed firm. While supply conditions remained comfortable, festive demand provided the price support.

Let me now walk you through the segment-wise performance during Q3 of FY26. For the edible oil segment, the quarterly revenues stood at ₹7,335.71 crores, registering 8.98% year-on-year growth, and EBITDA margin for the segment was 2.39%.

The primary growth driver in edible oil is our branded oil, such as Ruchi Gold, Mahakosh, and Sunrich. In the nine months of FY26, each of these brands recorded double-digit growth in sales value.

It is notable that nearly 85% of total edible oil sales now come from branded edible oils, driven by strong marketing initiatives and impactful brand endorsements. In Q3 FY26, the palm oil prices decreased considerably.

India's palm oil imports fell to an eight-month low in December, mainly due to seasonal demand and increased purchases of rival oils such as soya oil and sunflower oil. India's palm oil imports typically moderate during the winter months, as the tropical oil solidifies at lower temperature, limiting its use in the northern parts of the country, and North India continues to be our strong area of presence.

For the nine months, our revenue stood at ₹20,989.43 crores, registering 16.55% year-on-year growth, and EBITDA margin for the segment was 2.57%. For oil palm plantation business, the segmental revenue stood at ₹418 crores with margin of 22.47%.

For nine months FY26, revenue were ₹1,610 crores with an EBITDA margin of 21.53%. At the end of the calendar year, the area under cultivation stood at 108,000 hectares, with nearly 39% of plantation in prime yield years of 7 to 25 years.

Coming to our FMCG segment, the quarterly revenue stood at ₹3,248 crores, reflecting 38.93% year-on-year growth and a sequential growth of 12.31%. In Q3 '26, EBITDA margin came in at 10.88%.

On nine months basis of FY26, revenue stood at ₹8,297 crores with an EBITDA margin of 11.06%. The FMCG segment contributed 30.68% of revenues in Q3 FY26 while contributing nearly 66.33% of EBITDA in Q3 of FY26.

During the quarter, within the FMCG segment, biscuits reported revenue of ₹490 crores with an year-on-year growth of 26.4%. Doodh biscuit accounted for nearly 70% of biscuit sales.

In the nine months of FY26, the revenues from the biscuit brand Doodh surpassed FY25 levels, with cumulative sales crossing ₹1,000 crores. The Nariyal biscuit continues to gain traction.

Distribution is the key in driving the sales in this category. We are also strategizing on strengthening our reach in the southern region.

Staples generated revenue of ₹1,255 crores, growing at 68.70% on year-on-year basis. This increment weighed upon our margin profile for the segment.

The revised ghee strategy delivered encouraging results, with the category reporting a healthy performance driven by festive and winter season demand. Revenues stood at ₹467 crores in Q3 FY26, reflecting quarter-on-quarter growth of 21% and year-on-year growth of 46%.

Within nutraceuticals, the general nutrition showed increased customer acceptance. We have undertaken multiple targeted initiatives to further strengthen this category and expand its reach.

Additionally, our Vaidya enrollment program is progressing as planned, and we expect it to begin contributing meaningfully to the growth in the coming quarters. Our HPC categories generated a total revenue of ₹627 crores, with dental care leading the pack at ₹339.27 crores, followed by skin care at ₹155 crores, home care at ₹77 crores, and hair care and other products generating revenue of ₹54.78 crores.

We constantly evaluate our portfolio that resonate with Patanjali's ethos. In line with this philosophy, we introduced date almond spread, gond katira, and yellow mustard oil in the FMCG category.

In the HPC category, we launched new variants across shampoos, soaps, detergents, and creams, which have received encouraging consumer response. The Kesh Kanti Saundarya product range continues to gain strong traction, reflecting increasing acceptance of Patanjali's premium offerings.

Distribution remains the core strength of our business, and we continue to focus on expanding our omnichannel reach. Over the last calendar year, we added an estimated 0.2 million to 0.25 million new retail outlets, are now present in over 2 million retail outlets.

We are also intensifying our efforts to strengthen distribution in our core markets to drive higher penetration throughout. In parallel, we are scaling our presence across modern trade, e-commerce, and quick commerce platforms, with products available on Zepto, BigBasket, Amazon, JioMart, and other leading channels.

Now commenting on the outlook, from a demand perspective, we are hopeful that at the end of FY26 could be strong, primarily supported by favorable macro tailwinds. The demand benefits are likely to accrue progressively over the coming months, supported by improved affordability, wider distribution, and a continued shift from unbranded to branded consumption.

Together, these factors position the company well to capture the incremental demand and deliver a stronger performance in the coming quarters. Further, GST 2.0 reforms are likely to stimulate consumption over time.

Urban demand is expected to strengthen in the coming quarters, aided by easing inflationary pressure and the positive impact of revised direct and indirect taxation measures, which should support discretionary spending. On the rural front, we anticipate sustained growth momentum, primarily supported by a healthy kharif output, moderating inflation, and continued support from the government welfare schemes that are enhancing disposable incomes.

Together, these factors provide us with greater confidence in demand recovery and volume growth across categories. With this, I conclude my opening remarks and open the floor for the Q&A session.

Thanks. My first question is on biscuits, toothpaste, and hair oil.

If you could tell us in terms of GST pass-through, have you taken the grammage route, or have you taken the price cut route? For example, biscuits, I think some regional players are still operating at ₹4.5 and ₹9, while the number one player has transitioned fully to ₹5 and ₹10.

Wanted to understand that for each of the three categories, what have you done? Toothpaste, hair oils, and biscuits.

Thank you.

Am I audible?

Oh, I'm sorry, this phone went on a mute. No, to answer your question straight out, that the biscuits, we increased the grammage.

In case of shampoo and hair oil, the price benefit was transferred through the pricing itself.

In terms of outlook, how do you expect toothpaste competition, for example? Last one year, toothpaste competitive intensity, promotional intensity has been high, and there is the LUP, the GST benefit also because 30%, 40% for the industry leader at least is LUP, and they are adding back grammage there.

If you could comment how do you see toothpaste industry volume growth and competitive intensity in FY27 and Q4?

No, competition is fairly intense, that is straightforward. It's pretty much since the growth is very limited, anywhere between 3% and 5%, so that continues to grow stronger.

Our sort of dental care business has done exceedingly well. In the quarter, we did nearly ₹340 crores of business in the dental care, and we continue to gain quite substantial growth.

If I were to compare the dental care versus the last year, Q3 versus Q3 of last year, it's almost ₹116 crores up. This momentum is driven by two counts.

One is the multiple variants that we used, the new brand ambassadors that we got, the packaging change, some of that which were introduced, and very strong traction that we have in B and C towns, as well as the rural areas. That has been a very redeeming feature.

While the market overall the category may continue to grow between 3% and 5%, our target clearly is that we want to exceed 15% is what we set on the overall basis as a growth objective for HPC. On a fully annualized basis, this will take as what we've said that we'll take 18 months to take the benefit of the margins as well as the growth.

I'm pretty confident that the time when we took over the business, we should be pretty much close to 15% growth rate from that time.

Thanks. That's all from me.

Thank you.

Hi. Good morning, Sanjeev sir.

Thank you for the opportunity. First, just a bookkeeping questions.

If you can give the EBITDA absolute numbers for the quarter for HPC, biscuits, staples, and ethnic foods?

EBITDA, the breakup of each of these I can certainly give you. For the non-food, it's ₹157 crores, and the margin is about 24.95%.

Likewise, for the biscuits business, our EBITDA is ₹47 crores, margin is 9.57%. Foods, the EBITDA is ₹151 crores, the margin is 7.54%.

Edible oil the EBITDA is ₹175 crores, the margin is 2.4%, 2.39% to be exact.

Great, sir. Thanks for that.

Secondly, just wanted to check, there's been a strong growth turnaround in our foods businesses, both staples and the higher-margin foods, the ethnic foods. How does one think about growth in this and biscuits also.

How does one think about growth in these segments going ahead? How are you looking at this turnaround, and is it sustainable, and what is the steady-state growth that we should think about in terms of biscuits, staples, and the higher-margin food segments?

Look, I think the rational expectation, and pardon my cough and cold, Delhi is bad flu right now. Two two parts.

One is that our projected long-term growth is very clear that in the food space, we will grow between 8% to 10% will be our growth rate. Our margin construct in the food business will be between 8% and 10% as well.

That EBITDA margin, that's what we're targeting, and progressively we'll continue to sort of improve that. In the HPC business, when we took over the business, the margin was about 18% EBITDA was with the parent company.

We had targeted that we will take that 18% by 200 basis points over the next 18 months. Based on several changes that were introduced, we've been able to accomplish almost nearly 25% EBITDA in this quarter.

Now, on a sustainable basis, the question that you're asking is that how it's going to grow. Longer term, the guidance is very clear that the food business, 8% to 10% growth; HPC business, 15% growth, which is a high-margin category for us; and veg oil business, anywhere between 3% and 4% growth is what we target, and where in the volume terms.

Value, of course, is determinant of multiple how the values ultimately play. That is pretty much the set course how the company is looking at its businesses.

Yes, because of the GST relief, because of seasonality part of it, and certain seasonal changes that occur, some quarters you will see a better performance, but broadly that is the directional outlook that we have.

Great, sir. A final one if I can squeeze in.

On the edible oil segment, now the September last year import duty hike would be in the base, anniversary-ized, and we have talked about palm oil prices trending lower, albeit you have mentioned some pressures in terms of pricing. With this scenario, how does one think about the margins in the edible oil business going forward?

That's it from me. Thanks.

No, that's a great question, and I was hoping that we will do that because last year September, the margin construct was very positive. We had one-off gain that we got on account of the duty increase of nearly 20% gain that accrued in September '25.

That was more a one-time gain. Likewise, previous Q3 of FY25, our margins were ₹581 crores, and on a base sale of 9,000—no, our margins were ₹364 crores on a revenue of ₹6,731 crores, about nearly 5.5%.

As I have mentioned very often that the edible oil business, by its very nature, our targeted EBITDA stream is between 2% and 4%. The orientation in terms of the planning that is entirely done by the company is on the volume growth of between 3% and 4%.

We are seeing consolidation in that segment. We are seeing that the consumers are gravitating towards the branded players.

The larger players have the benefit of managing their treasury and working capital and risk better and superior. There is a consolidation happening in that space.

The performance evaluation on a quarter-on-quarter basis is always a challenge. Because of the requirements of accounting and the audit, you have to take a particular price on the mark-to-market at the end of a quarter, and that starts to change, which is what happened in this quarter as well.

After that, the uptick has happened. I'm pretty confident of not only remaining within the framework of the objectives that we define for ourselves, but also maintaining that closer to 4% is what we target.

I'm witnessing that there's some change already quite afoot right now as we speak as well, in last three weeks that the prices have started moving up. All that benefit should accrue in this quarter.

That is broadly the direction we have. The interplay between palm, soya, and sun, because three big import items, that will always happen.

Palm because it had gone down because of the exceptionally high prices, which had exceeded soya and sun, so that will happen. Broadly on the overall category basis, this is what we're targeting.

Progressively, we are expecting with the 15% and 20% growth in food and non-food and the other businesses, I think we should head closer to the stated objective of 50-50 between the edible oils and the non-edible oils portion of it. For example, our margin construct if you were to look at right now also, 2/3 of the margin is now accruing from non-edible oil proportion.

Nearly if I were to say that the 71% margin came from the FMCG segment in this quarter, and about 25.6% margin came from the edible oil, whereas the edible oil segment contributed 69%, and the FMCG segment contributed about 30%, 31%. This spread will consistently as we grow our revenues on the FMCG side, and we reach closer to at the growth rates that we've discussed closer to about ₹20,000 crores, I think at that level this margin profile of the company going towards the double-digit EBITDA that we're targeting, I think will pretty much become a reality.

That's what the objective the company is looking at.

Right. Great, sir.

Thanks for the detailed answer, and all the best. Thanks.

Hi, team. Good morning.

Thank you for the opportunity. Sanjeev sir, my first question is on edible oil.

You mentioned that the imports generally quarter three declines for palm. Does that mean the system and even us have a higher inventory at the lower price?

Maybe if there is a price increase, we will have to take the price increase as and when the price increases happens for the imports?

Yes, that's right. Shirish, what will happen is that you mark down the inventory to the quarter-end pricing.

That's the accounting part, Mr. Kumar Rajesh will explain better.

We have to mark it down and bring it to a particular level, and if thereafter the prices increase, then typically that benefit accrues to the company.

Okay. The second thing is that even soya and sunflower is also becoming very lucrative in India.

Does that mean that the shift will happen from palm to sunflower or soya, or that is not correct way to look at it?

I would say that the thesis is correct that the perceived value for soya and sun is at higher level, where people see it as more premium oils. Palm is lesser premium, or in some cases, attaching the health connotations, etc.

All three are set to grow. The interplay between them is the prices at the origin in the countries from where they're exported and the global edible oil complex.

Many times that undergoes a change, on which there's very little control the companies have. Then what happens that the consumers might switch between one versus the other, and this could happen.

The pecking order is very clear that sunflower is typically the highest price, the soybean is at next to it, and the palm is the cheapest. Now occasionally it might happen that the palm may exceed or soya may change or otherwise depending on supply situation, but broadly that is in eight out of 10 cases, that is how it will remain.

Some insecurity, for example, out of Russia or Ukraine supply, suddenly the prices might spike for sunflower, but broadly that is a spread which will happen. Some shifting happens, but consumers are largely price inelastic.

Especially in case of sunflower, which is largely sold through the branded form, the consumers will stay with sunflower oil, they will not switch to palm oil or soya. It is the industrial consumers typically who tend to switch.

For example, when the palm went too high, the B2B consumers, they started switching from palm to soya. That may happen, but otherwise not too much of a change.

This will pretty much remain same.

One follow-up on this. We have three, four brands: Sunrich and Ruchi Gold.

Within these four categories or subcategories, which has grown faster in quarter three?

Quarter three, Sunrich, we have made very big inroads. We are nearly today doing close to from that perspective of doing nearly 12,000 tonnes a month now, and we will continue to gain momentum, which is a sunflower oil.

That has been the fastest growth on a percentage basis, but in absolute terms, our growth has been largely through soya and palm.

Okay. My second question is on FMCG.

You mentioned that the biscuit growth is about 26.4%. Is that driven by the volume and grammage changes?

I'm just trying to understand is the volume and price is half and half, or volume is higher?

It's obviously very volume-driven without a question. Price is not the bigger driver in this.

As I was mentioning earlier that we actually in case of biscuits, we increased the grammage post the GST. Largely it is not driven by any price inflation, it is entirely on the volume growth.

This has come through distribution expansion and a natural velocity that we had on the growth rates of the biscuits market. Overall, that has been a very redeeming feature for the biscuits business because we are outpacing the industry by a very substantial, wide margin.

Okay. The last question on HPC.

I think you mentioned that we are trying to ramp up in South. If I look back overall as a company, what South contribution was there including all the FMCG categories a year before and now what your target is to ramp up the distribution?

There's a very good pickup. Sure.

Because this is very often discussed. If I will look at for the overall distribution, but this is obviously not a correct reflection because palm oil is very substantive, our Ruchi Gold sells largely in South, which is a branded play.

I'll just give the overall numbers just for benefit of everyone, that I was just pulling out that why don't we consolidate everything and see where the numbers stack up. Zone-wise mix 33% is contributed by South, the largest, if I were to look at the overall including edible oils and FMCG.

North is 31%, East is 18%, Central is 9%, and West is 9%. Now if I were to look purely at the FMCG, I would say that this number would be closer to about 10%, and that has got on a lower base.

That is growing at 15% to 18% now. There we are expanding, putting a lot of energy, where this base of growth we want to establish and gain momentum, and a lot of products are now gaining a lot of traction.

For example, our food products, some of the HPC products now, they're gaining a lot of traction, and we are quite confident that the reach that we have in the distribution, the cross-selling amongst the distributors and retail that we work towards. There's a reasonable amount of confidence that we should be able to pull through on that and put a good growth rate for South India.

Okay. Thank you, and all the best.

Thank you. Thank you.

Hello. Good morning, sir.

I had a couple of questions. First, staples continue to be a drag, and that is little brand loyalty in this category.

What are our plans from the FMCG mix perspective?

Broadly what has happened over a period of time, staples have always been a revenue driver and less from a margin perspective, as you rightly mentioned, that there's a bit of lower margin compared to ethnic foods. Clearly as I mentioned in my opening remarks and the release that we gave as well, that for example in ghee, we had exponential growth.

Of course, it was led to a large extent by the festival demand, etc., and some of the promos that we've had. There was a huge pickup in the ghee business.

Likewise, we did almost 470 crore ₹468 crores in ghee in the last quarter, of course, driven a lot by the overall buoyancy that we saw on the demand side. There is a lot of effort that is happening towards pulling businesses on the ethnic food side on the higher level.

At the same time, the staples have a particular way of sort of coming in because the demand is not in the sense that it's not very defined. It is also seasonal, and it is very price-driven as well.

Many times if they find a greater value in what we are offering, the demand pickup is very suddenly that people would be buying a lot more because there the brand loyalty is lesser, and the focus is a lot more in terms of the value proposition that you're offering on the staples pricing. My sense is the mix will not dramatically alter.

The mix will pretty much remain same, but progressively as the ethnic foods category will continue to increase, I think we will start seeing better margin construct as well in the overall food category as we speak.

Sir. Sir, next one, sir, ghee can be very cyclical in nature.

How do we manage consistency in procurement throughout the year?

What typically happens in ghee is that the sell side, as I mentioned, there is some cyclicity, not volatility in pricing, but seasonality uptick is always there. The procurement is very consistent.

There is a season in which you're able to procure, so that market is, of course, depends a lot on supply side and how the demand for the cow butter, etc., is there. That we have to do, but the supply chain is fairly well-oiled machine.

There's a large vendor base. There are companies who supply on a consistent basis the cow butter to us.

We secure our supplies over a period of time. That works in general quite well, and there is some bit of pricing change there as well, so that may have some impact on the margin profile of the business.

That is one reason why the raw material pricing plays a very crucial role in business verticals like biscuits and ghee and some of these areas where you might see certain degree of variation. Which is why we always target that 8% to 10% is a good blend of margin between ethnic and the staples food, we should be able to generate constantly that.

Sir. Got it.

Sir, one last thing. Do we have also any plan to bring other dairy related products?

No, we have no immediate plans of introducing new dairy products. We have enough on the plate.

We have, of course, that innovation constantly happens. We want to introduce new products, but on the dairy side, I would imagine the variations of ghee we will certainly do, but products like butter or cheese or liquid milk or flavored milk, etc., that category perhaps there's no immediate plans for that.

Sir. That answers my questions.

Thank you so much.

Hello, am I audible, sir?

Yes. Sir, my question is on the product side, which product lines are you planning to expand?

We have not had many new product innovations, and the new-age brands are giving competition give us stiff competition. What is your take on this and on the product innovation side?

There's a pipeline of products that are constantly planned, and we continue to introduce new variants, SKU. Within the SKU itself, there's a constant mixing of new products, new SKUs, new ideas in terms of blends, etc., as was just mentioning.

Also responding to the channel through which it is getting distributed. For example, as the change in e-com and quick com has defined and redefined in the way consumers shop, and likewise for the modern trade and general trade.

To avoid the conflict many times those adjustments are done. Some products on a trial basis largely are tried out first on the e-com and quick com, and then on the modern trade, and then finally through the GT.

To answer your question specifically, as I mentioned, that it's a constant work which is happening. You will see a slew of products that will get launched.

This quarter, for example, other than what I have mentioned in the call, you will see that in the biscuit category, we will have multiple premium products that will get launched now. I would not be able to give the details on this call, but that is under the works.

Likewise, for the HPC category, we are planning at least three more new product launches which will happen over the next six months in the skin care and some variations in the dental side, as well as in the hair care. A lot of work and in the home care category.

There is a constant sort of product pipeline. Yes, competition is there from the new-age companies, and yes, they are doing a great job, and so we will do our job.

We will be found nimble, we'll be found quick, and we will be able to respond to any challenges.

Got it, sir. Got it.

My last question is about last year we had signed up multiple brand ambassadors. Just wanted to ask that when do their contracts expire, and are we likely to renew it?

If yes, what will be the cost and the tenure of the contract?

I would not share on this call, and that's confidential. The tenure continues to run with all the five ambassadors.

Mr. Dhoni is signed up for additional two years.

The contract for Mrs. Shilpa Shetty continues, and likewise both for Tiger Shroff and Tamannaah Bhatia, and similarly for Mr.

Shahid Kapoor, that also continues. As we speak right now, their contracts are very much on and active.

Sir. Got it.

Thank you. All the best.

Thank you.

Good morning, sir. I wanted to understand regarding area under cultivation.

It is approximately 16% for the total area allocated. Could you guide how much hectares are we going to add in the area under cultivation?

You're talking of oil palm, right?

Yes, sir.

Okay. Oil palm currently what we have is that 108,000 hectares which has been planted.

This year our target is that we should do close to 40,000 additional hectares, which is a mix of 20,000 in northeastern part of the country and 20,000 in the South India. For that we need to prepare well in advance on getting our sprouts and nurseries and others, and we are very much on course for that.

When I'm saying this year means '26, '27 I'm talking now.

Yes, sir. Sir, the area has been allocated by the government, is it a long-term lease, and how much amount does it cost us?

We don't pay any amount. What the government does is that, of course, to give an answer to that, it's in perpetuity.

It's for 35 years the life cycle of the oil palm. After when it gets closer to the trees having lived their life, then you can extend that by you do the replanting.

There is no tenure fixed for the lease because the land continues to be owned by the farmer only. We simply work in close collaboration with the farmer and work alongside him for 35 years.

That is almost it can be seen as perpetuity because government is not asking to do anything on that. We're basically saying that this company is allowed to do the oil palm plantation work along with the farmers, and ensure that they are able to 100% work on this.

That's it.

Okay. Thank you, sir.

Thank you.

With this, I conclude the call. I sincerely thank you for your continued support and trust in Patanjali Foods.

If you have any further queries, please contact

Thank you.