Shares of Patanjali Foods Ltd slipped close to 3% in early trade on Monday, November 3, despite the firm posting strong second-quarter numbers. The stock opened weak and dropped to around ₹584 before recovering slightly, trading nearly 2.7% lower at ₹585.80 at 9:42 am. The counter has slipped about 2% over the past year.
The decline comes a day after the Baba Ramdev-led company reported its best-ever quarterly earnings, with standalone net profit surging 67.4% year-on-year to ₹517 crore in Q2 FY26. Revenue jumped 21% YoY to ₹9,344.9 crore, supported by stronger demand trends, while EBITDA rose 19.4% YoY to ₹552 crore. EBITDA margin stood at 5.6%, slightly lower than 5.7% a year ago.
Management highlighted that recent GST revisions supported its performance, with 85% of the product portfolio now taxed at just 5%. The FMCG arm remained the key growth engine, surging 34% QoQ and 30% YoY, while edible oil revenue grew modestly by 4.33% QoQ and 17% YoY.
Jefferies view: Maintain ‘Buy’
Even with the stock declining today, global brokerage Jefferies reaffirmed its ‘Buy’ rating on Patanjali Foods with a target price of ₹700 per share. The firm noted strong traction in the foods and FMCG segment, normalization in edible oil performance, and expectations of stronger demand in the second half aided by GST cuts.
Market mood vs fundamentals
While the earnings print impressed, profit-booking and a muted broader market trend appear to have weighed on the stock in early trade. Investors will be watching margin trends and FMCG momentum closely over the coming quarters.
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