Patanjali Foods shares extend rally, jump 6% as management backs FY27 growth targets

Reports coming in for today mention that Patanjali Foods shares extended their recent surge on Monday, September 21, rising more than 6 percent after the firm's management struck an optimistic note on its FY27 expansion prospects, particularly in FMCG and edible oils, while additionally forecasting firm free cash flow.

The stock advanced 6.5 percent to Rs 390.75 in late-morning trade, taking its four-session gain to around 15 percent. Despite the rebound, Patanjali Foods stays down around 30 percent in 2026 so far, compared with a 10.7 percent slide in the Nifty 50. The firm had a market capitalisation of around Rs 42,300 crore.

Sanjeev Asthana, CEO of Patanjali Foods, told CNBC-TV18 that the firm anticipates its FMCG business to grow 18-20 percent in FY27, while the foods business is projected to expand 8-10 percent. Edible oils are anticipated to register expansion of more than 4 percent. Asthana stated the firm was confident of meeting its FY27 targets and anticipates to generate free cash flow of Rs 700-800 crore during the year.

Share Markets Live Updates | Sensex, Nifty, GIFT Nifty Today

The management commentary on consumer demand was more mixed. Asthana stated urban demand remained firm and the festive season was anticipated to be good, but the firm was less optimistic around rural demand because of the poor monsoon. Supply conditions in edible oils are another concern. According to Asthana, more than 90 percent of India's sunflower oil imports are at present stuck, making supply a major offering.

Asthana additionally stated there were no regulatory issues concerning the firm's foods business and that no loans had been taken against the promoters' 38 percent stake.

The latest management outlook follows a firm June-quarter performance. Patanjali Foods' consolidated net earnings surged 86 percent year on year to Rs 335.7 crore in Q1 FY27, while topline from operations rose 29 percent to Rs 11,337.5 crore. EBITDA increased 69 percent to Rs 543.3 crore, with the EBITDA margin expanding to 4.8 percent from 3.7 percent a year earlier. The June quarter marked the firm's fourth consecutive quarter of record topline.

The stock's recent upside have additionally coincided with legal relief for the broader Patanjali group after the Delhi High Court quashed seven Income Tax Appellate Tribunal orders concerning Patanjali Ayurved, criticising procedural lapses and the tribunal's handling of the matters.