Patanjali shares fall 3% after Q2 results; should you buy or sell -- check brokerage call

Patanjali Foods Ltd

Patanjali Foods Ltd shares fell as much as 3 percent in the opening trade on Monday even with the company reporting strong July-September financial results, and Jefferies maintaining a bullish view. Patanjali stock fell to Rs 584, as of 9:25 am; it is now down 2 percent over the past year.

Patanjali Foods posted a 67.4 percent year-on-year rise in standalone net profit to Rs 517 crore in Q2 FY26, marking its strongest quarter to date on turnover and profit metrics. Revenue rose 21 percent year-on-year to Rs 9,344.9 crore, while EBITDA increased 19.4 percent to Rs 552 crore. EBITDA margin stood at 5.6 percent, marginally lower than 5.7 percent a year earlier.

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The company said GST rate changes have supported performance, with 85 percent of its portfolio now under the 5 percent tax bracket. The FMCG segment grew 34 percent quarter-on-quarter and 30 percent year-on-year, while revenue from edible oils rose 4.33 percent sequentially and 17 percent year-on-year.

Patanjali Foods stock call: Should you buy or sell?

Jefferies maintained a ‘Buy’ call on Patanjali foods stock with a target price of Rs 700 per share, noting a Q2 beat driven by strong food and FMCG profitability. The brokerage said edible oils have normalised and home and personal care performance remains steady. Jefferies also cited management’s expectations of better demand in the second half, supported by GST rate cuts.

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