PATANJALI - Patanjali Foods Limited Share Price

Major Questions and Answers from the Q&A Section of Patanjali Foods Limited Q3 FY26 Earnings Conference Call

Question 1: "In terms of GST pass-through, have you taken the grammage route or have you taken the price cut route for biscuits, toothpaste, and hair oil?"

Answer: In biscuits, we increased the grammage. For shampoo and hair oil, the price benefit was transferred through pricing adjustments.

Question 2: "How do you see toothpaste industry volume growth and competitive intensity in FY27 and Q4?"

Answer: Competition remains intense, with overall growth between 3% and 5%. However, our dental care business achieved nearly Rs. 340 crores this quarter, and we aim for over 15% growth in the HPC segment, supported by product variants and strong presence in B and C towns.

Question 3: "Can you give the EBITDA absolute numbers for the quarter for HPC, biscuits, staples, and ethnic foods?"

Answer: Certainly! HPC contributed an EBITDA of Rs. 157 crores (24.95% margin), biscuits at Rs. 47 crores (9.57% margin), staples at Rs. 151 crores (7.54% margin), and edible oil at Rs. 175 crores (2.4% margin).

Question 4: "How does one think about growth in the food segments going ahead?"

Answer: We project long-term food growth between 8% to 10%, targeting similar margins. For HPC, we aim for 15% growth, driven by improved margins post-strategic changes.

Question 5: "What about margins in the edible oil business going forward?"

Answer: We expect margins to stabilize around 2% to 4%. While there are seasonal pressures, consumer demand for branded oils remains strong. There's potential for margin improvements as prices stabilize.

Question 6: "Does that mean we have higher inventory at lower prices?"

Answer: Yes, we mark down inventory to a particular pricing level at quarter-end. If prices subsequently rise, the benefit will accrue to the company.

Question 7: "What has grown faster in the edible oil segment?"

Answer: Sunrich has shown the fastest growth recently, with nearly 12,000 tons sold monthly, although overall growth has also come from soya and palm oil segments.

Question 8: "Is biscuit growth driven by volume or price?"

Answer: The growth is primarily volume-driven with no significant price inflation affecting it; we increased grammage in response to GST adjustments.

Question 9: "What is the contribution of the South region to your overall revenue?"

Answer: The South contributes about 33% to total revenue, while FMCG alone accounts for around 10%, which we aim to grow further.

Question 10: "What are your views on expanding the dairy product line?"

Answer: We have no immediate plans for new dairy products beyond potential variations of ghee, focusing instead on what we currently have.

Question 11: "What is the plan for area under oil palm cultivation?"

Answer: We plan to add 40,000 hectares this year, split between the northeast and southern states, which will enhance our cultivation capacity.

Question 12: "How does the leasing work with the government for oil palm cultivation?"

Answer: The land remains with farmers under a 35-year agreement with no payment involved. We collaborate closely with them throughout this period.

These concise summaries represent the key questions and answers from Patanjali Foods' Q&A session while complying with your requirements regarding detail and character limits.