Patanjali Foods de-rated as edible oil squeeze exposes FMCG valuation stretch
Q4FY26 FMCG revenue grew just 2.6% YoY to ₹2,890 cr while edible oils Ebit slumped 31% to ₹178 cr on palm (+20%) and soya (+23%) price spikes. ICICI Securities cut FY27 EPS by ~14%, with valuation now at 35x FY27 EPS versus a peak market cap of ~₹73,000 cr in April 2025.
What happened
Patanjali Foods Q4FY26 FMCG revenue rose 2.6% to ₹2,890 cr with biscuits and HPC up ~15%, but edible oils Ebit fell 31% on palm/soya price spikes. ICICI
Key facts
- Q4FY26 FMCG revenue ₹2,890 cr (+2.6% YoY)
- FMCG Ebit ₹276 cr (+16% YoY)
- Doodh biscuit brand >₹1,300 cr annual sales
- Edible oils Ebit ₹178 cr (-31% YoY)
- Palm oil +20%, soya oil +23%
- FY25 PAT ₹1,283 cr
- Peak market cap ~₹73,000 cr at ₹670.33 (16 Apr 2025)
- FY26 FMCG Ebitda margin 10.81%
- FY27 EPS cut ~14%
- Valuation 35x FY27 EPS
Why this matters
The de-rating from ₹73,000 cr peak exposes a window to revisit FMCG bolt-on valuations, as commodity-exposed peers may now entertain strategic conversations at more rational multiples.