Patanjali Foods Stocks Extend Winning Streak, Up 6% With Management Optimistic About FY27 Growth Estimates

Stocks of Patanjali Foods extended their recent rally as on Monday, September 21, gaining over 6% as the company’s management expressed optimism about growth estimates for FY27 and announced free cash flow of ₹700-800 crore in the financial year. 

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Stock gained 6.5% to ₹390.75 in late morning deals, taking its gains over four sessions to around 15%. 

Notwithstanding the recent rally, stocks of Patanjali Foods have declined by around 30% this year. In contrast, the Nifty 50 index has fallen by 10.7% this year. Market capitalization of Patanjali Foods was around ₹42,300 crore. 

FMCG business expected to grow 18-20% in FY27 

According to the management outlook, Patanjali Foods forecasts growth of 18% to 20% in its FMCG business in FY27. 

Foods business will see growth of 8-10%, and edible oils business will grow by over 4%. 

Management is confident about meeting company’s FY27 growth targets and Patanjali Foods is expected to report free cash flow of ₹700-800 crore in FY27. 

Urban and rural demand show different trends 

The company’s assessment of consumer demand was mixed. 

Urban demand remained strong, while the festive season was expected to be good. The outlook for rural demand was less positive due to the poor monsoon. 

Supply conditions in the edible oils business were another area highlighted by the management. More than 90% of India’s sunflower oil imports were currently stuck, making availability a concern for the segment. 

The management also clarified that there were no regulatory issues concerning the company’s foods business. It further stated that no loans had been taken against the promoters’ 38% stake. 

Q1 profit rises 86% to ₹335.7 crore 

The FY27 outlook follows a strong performance by Patanjali Foods in the June quarter. 

Consolidated net profit increased 86% year-on-year to ₹335.7 crore in Q1 FY27. 

Revenue from operations rose 29% to ₹11,337.5 crore, while EBITDA increased 69% to ₹543.3 crore. 

The company’s EBITDA margin improved to 4.8% from 3.7% in the corresponding period a year earlier. 

The June quarter was also Patanjali Foods’ fourth consecutive quarter of record revenue. 

Shares gain around 15% in four sessions 

The latest rise extended the stock’s recovery for a fourth consecutive session. 

Patanjali Foods shares reached ₹390.75 during late-morning trading on Monday, representing a 6.5% increase for the session and taking the four-session advance to around 15%. 

The rally has come after a difficult year for the stock. Even after the recent gains, shares remain down around 30% in 2026 so far. 

The latest management outlook places the focus on the company’s FY27 operating targets, with FMCG expected to record the strongest growth among the businesses highlighted, alongside projected free cash flow of ₹700-800 crore.