Patanjali Foods shares rise up to 4%, extend gains for third straight day on FY27 growth targets

Reports coming in for today mention that Patanjali Foods shares rose up to 4 percent in Tuesday's market session after the firm's management backed its expansion targets for FY27.

The stock hit an intraday high of Rs 412.80 per share on the NSE, gaining more than 4 percent. Earnings booking emerged at elevated marks, and the stock was quoting at Rs 400.35 per share, up 1.05 percent, around 12:45 pm.

The stock had advanced 8 percent in the previous session 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.

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.

Patanjali Foods shares extend surge, jump 6% as management backs FY27 expansion targets

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.

The management's commentary on consumer demand was 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 due to 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.

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.