Patanjali Foods expects a stronger volume growth in the coming quarters as the impact of GST rate reductions and broader tax reforms begins to meaningfully reflect in consumer demand, CEO Sanjeev Asthana said, expressing confidence in a sustained consumption rebound across rural and urban markets.
The company believes the positive effects of GST 2.0 reforms will progressively stimulate demand, supported by improved affordability, rising disposable incomes and an accelerating shift from unbranded to branded consumption. While rural markets have outperformed urban demand for the seventh consecutive quarter, the company is now witnessing a robust rebound in urban consumption as well, aided by easing inflationary pressures and revised direct and indirect taxation measures.
Asthana noted that favourable macroeconomic tailwinds , including a healthy kharif output, moderating inflation and continued government welfare support, are expected to sustain rural momentum. Urban demand, meanwhile, is projected to strengthen further as discretionary spending improves.
Against this backdrop, the company delivered its highest-ever quarterly revenue in Q3 FY26. Revenue from operations rose 16.53% year-on-year to ₹10,483.71 crore. EBITDA for the quarter, excluding exceptional items, stood at ₹492.06 crore, with a margin of 4.69%. Profit before tax came in at ₹364.54 crore, translating into a PBT margin of 3.46%.
Q3 FY26 was described as a period of transition and execution, largely shaped by the rollout of GST 2.0 reforms. September and October saw temporary trade disruptions driven by repricing actions, packaging revisions and operational adjustments. However, inventory levels began stabilising by November. During the quarter, the company introduced higher grammage packs and revised pricing to pass on GST-related benefits to consumers, enhancing affordability.
The festive season, particularly Diwali, acted as a key demand catalyst across categories. Festive-led purchases were supported by positive consumer sentiment, while GST-led price corrections further boosted uptake.
Distribution continues to remain a core strategic lever. Over the past calendar year, the company added an estimated 2,00,000–2,50,000 new retail outlets, expanding its footprint to over 2 million outlets nationwide. Alongside deepening penetration in core markets, the company is accelerating its omni-channel push, strengthening its presence across modern trade, e-commerce and quick commerce platforms such as Zepto, BigBasket, Amazon and JioMart.