Patanjali Foods expects edible oil margins to stay above 4% this year, with CEO Sanjeev Asthana citing strong momentum across the segment.

Asthana pointed to three parts of the edible oil business driving this confidence: the oil palm plantation, which alone generated close to ₹357 crore in EBITDA last year and is expected to cross ₹400 crore this year, the oilseed crushing business, and a broader spike in edible oil prices that has worked in the company’s favour.

He said pointers for the coming quarters, including effects from El Niño and tensions in West Asia, suggest prices should stay elevated, which would keep supporting the segment.

On the FMCG side, the company faced a one-off setback in the June quarter due to an inventory write-off in its staples business, something Asthana described as largely an accounting issue that has now been resolved.

Away from staples, he said the rest of the FMCG portfolio performed in line with expectations, including biscuits, which delivered margins better than the company’s own 12% target, and the Nutrela consumer business, which came in at nearly 18%.

The company reaffirmed its full-year guidance of 8-10% margins for its foods portfolio and 15%-plus for its home and personal care business.

It also stood by its longer-term target of a 6.5% blended margin by FY28, a goal Asthana said remains achievable as the oil palm business keeps growing as a share of overall revenue.

Rural demand emerged as a soft spot. Asthana said the second quarter has seen some weakness in rural markets, partly linked to an uneven monsoon, though he added it’s still too early to tell whether this will persist.

On corporate structure, Asthana ruled out both a demerger of the FMCG business and a share buyback for now, citing the company’s strong cash reserves and free cash flow generation.

He also clarified that Patanjali Ayurved’s recent approval to acquire a stake in Magma General Insurance is unrelated to Patanjali Foods and will not draw on the listed company’s balance sheet.

For the June quarter, Patanjali Foods reported consolidated revenue of ₹11,337.45 crore, up 29% year-on-year, marking its fourth straight quarter of record revenue. Profit after tax rose to ₹335.73 crore from ₹180.36 crore a year earlier.

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