Patanjali Foods Ltd Q2FY26 – When Baba Ramdev’s FMCG Yagna Meets Auditor Resignation Yoga
1. At a Glance
Patanjali Foods Ltd (formerly Ruchi Soya) just wrapped up Q2FY26 like a full-body detox — cleansing debt, sweating out edible oil volatility, and doing “Pranayama” on profits. With a market cap of ₹65,504 crore, the company sits like a chonky yogi between FMCG giants and edible oil titans. At a current price of ₹602, the stock trades at a 45.9x P/E and a book value multiple of 5.76x — proving enlightenment isn’t cheap.
The Q2FY26 showstopper? PAT ₹517 crore, a 67% YoY surge and 21% jump in sales at ₹9,799 crore. Baba Ramdev’s FMCG dream is finally flexing its biceps, but the edible oil belly still wobbles a bit. With edible oils forming 72% of revenue and FMCG growing to 28%, the transition from “Soya Sabziwala” to “Swadeshi FMCG warrior” is underway.
But hold your Surya Namaskars — amid all this, the auditors (Chaturvedi & Shah LLP) hinted at resignation over “fees,” proving that even in Yoga Rajya, paisa matters more than pranayama.
2. Introduction
Picture this: you’re sipping herbal tea from a Patanjali-branded cup, feeling pure inside, and suddenly you realize your investment portfolio just got a chakrapath shock — Patanjali Foods is no longer just an edible oil dripper; it’s now trying to become India’s next HUL, but with tulsi and triphala in every SKU.
Once upon a time, Ruchi Soya was the poster child of “corporate bankruptcy meets spiritual revival.” Now, it’s trying to mix “ghee-driven nationalism” with balance-sheet discipline. Baba Ramdev and Acharya Balkrishna’s grand FMCG Yagna has transformed this edible oil dinosaur into a ₹65,000 crore FMCG beast.
But in typical desi style, the plot thickens — auditors exiting, GST notices entering, and bonus shares doing a 2:1 yoga split. Add to it a ₹1,100 crore acquisition of Patanjali Ayurved’s home and personal care business — and you’ve got yourself a full Bollywood business drama: Swadeshi Mission Impossible.
If food was faith, this company is trying to make balance sheets spiritual. But as we know, not even pranayama can fix profit margins below 6%.
3. Business Model – WTF Do They Even Do?
Patanjali Foods’ business model is basically what would happen if HUL, Adani Wilmar, and Baba Ramdev went to a Vipassana retreat together.
Segment 1: Edible Oils (72%) This is the company’s traditional “Ruchi Soya” legacy. Think sunflower, soybean, and palm oil — branded as Nutrela, Mahakosh, Sunrich, and of course, Patanjali. But let’s be honest — it’s hard to sell oil as “healthy” when it’s the same stuff used in roadside samosas.
Patanjali also runs one of India’s largest oil palm plantations — with 80,952 hectares under cultivation and 5 mills crushing palm fruit like there’s no tomorrow. It even opened a new Niglok Palm Oil Mill in Arunachal Pradesh (Aug 2024), proving diversification isn’t just for portfolios.
Segment 2: Food & FMCG (28%) Here lies the future dream — 242 products, 500+ SKUs, from Nutrela Protein to Aata, Sauces, Honey, and Biscuits. If it can be eaten, sniffed, or smeared, Patanjali will brand it with yoga and sell it through 8,000+ distributors and 3,420 Arogya Kendras.
But the FMCG segment saw a 4% YoY dip in H1FY25 due to “sluggish demand.” Translation: even Baba can’t force people to buy Ayurvedic peanut butter every week.
Still, with ₹1,100 crore acquisition of Patanjali’s Home & Personal Care arm, the company is aiming for toothpaste-to-shampoo domination. FMCG enlightenment, incoming?
EBITDA margin held at ~6%, which in edible oil world is like pulling off a headstand on a banana peel. Profit growth was muscular, but sustainability? That’s like asking if Ramdev actually levitates during yoga.
5. Valuation Discussion – Fair Value Range (Educational)
Let’s play the valuation chakra balancing act:
(A) P/E Method: Industry P/E ~26x. Company EPS (Annualised): ₹19.0 Fair Value Range = ₹19 × (25–35) = ₹475
