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Patanjali Foods Limited has recorded its highest-ever quarterly revenue for its edible oils segment, reaching Rs 8,532.25 crore in Q2FY27, representing a 22.39% year-on-year increase. This financial milestone coincides with a significant expansion in the company's oil palm cultivation area, which reached 127,265 hectares as of September 30, 2026. Notably, approximately 34% of this cultivated area has entered the prime-yielding phase, consisting of trees aged between 7 and 25 years.
The edible oils segment generated earnings before interest, tax, depreciation, and amortisation (EBITDA) of Rs 256.22 crore, yielding a 3.00% EBITDA margin. Within this segment, the oil palm plantation business contributed Rs 742.29 crore to the quarterly revenue. While the edible oils business significantly outperformed the fast-moving consumer goods (FMCG) segment in terms of total revenue, the FMCG division maintained a higher margin of 7.57% on revenues of Rs 2,923.48 crore.
Currently, Patanjali Foods has a total allocated plantation area of 6.63 lakh hectares, suggesting substantial room for future cultivation beyond the current footprint. To accelerate this growth, the company is conducting farmer-awareness seminars and dedicated outreach programmes across India. Overall performance for the first half of the fiscal year (H1FY27) was also strong, with total operations revenue rising 22.06% to Rs 22,660.03 crore.
Addressing market dynamics, management noted that global vegetable oil markets remained firm during the quarter. Factors such as dry weather impacting Indonesian production and Indonesia's B50 biodiesel mandate have supported palm oil demand. Additionally, high demand for soybean oil in the United States for biofuel production, alongside fluctuations in rapeseed and sunflower-seed output, continue to shape international supply chains.
Structural changes in the domestic market have also played a role. On September 24, 2026, India reduced the effective import duty on crude palm oil and crude soybean oil to 11.0% from 16.5%, while the duty on crude sunflower oil was slashed to 5.5%. Patanjali Foods also highlighted the introduction of standardised edible oil pack sizes as a positive regulatory shift toward transparency. Looking ahead, the company expects growth momentum to persist through the festive and wedding seasons as it scales its integrated edible oils and FMCG operations.
Source: Multibagg AI