Patanjali Foods shares rally over 16% in four sessions; Here is what you need to know

Shares of Patanjali Foods, the Haridwar-based fast moving consumer goods (FMCG) company, rose for a fourth straight session on Wednesday, September 23. In the four trading sessions, Patanjali Foods shares have advanced as much as 16.5% to hit an intraday high of ₹412.90 on the BSE.

Global investment firm Jefferies in a note said that it remains confident of Patanjali Foods achieving the higher end of edible oil margin guidance of 4% and sustaining 18-20% margins in home and personal care segment.

Jefferies said that its management highlighted near-term rural demand softness but expects a festive-led recovery driven by resilient urban demand.

Despite sunflower oil supply disruptions and commodity inflation, it maintained FY27 growth guidance of 4% volume for edible oil, 8-10% for foods and 15% for home and personal care segment, Jefferies added.

Earlier this week, Patanjali Foods Chief Executive Officer (CEO) Sanjeev Asthana said that the company continues to see healthy urban demand, while higher input costs and the rural slowdown remain key factors to watch.

Asthana said that he expects food business to grow in range of 8-10% and added that its biscuits business is doing well and nutraceuticals segment is picking up.

Patanjali Foods Q1 earnings

Yoga guru Swami Ramdev backed company reported that its net profit in the first quarter of current financial year surged 87% to ₹336 crore from ₹180 crore in the same period last year.

Its revenue from operations advanced 29% to ₹11,337 crore compared with ₹8,766 crore in the year-ago period.

The company reported strong operational performance as its earnings before interest, taxes, depreciation, and amortization (EBITDA) advanced 69% to ₹543 crore and EBITDA margin improved by 110 basis points to 4.8%.

As of 11:19 am, Patanjali Foods shares traded 1.75% higher at ₹41155, outperforming the NIFTY LARGEMIDCAP 250 index which was up 0.45%.