Patanjali Foods Ltd (NSE: PATANJALI) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Sanjeev Kumar Asthana — Chief Executive Officer
Kumar Rajesh — Chief Financial Officer
Analysts:
Unidentified Participant
Abneesh Roy — Analyst
Abhishek Mathur — Analyst
Shirish Pardeshi — Analyst
Presentation:
operator
Ladies and gentlemen, you are connected for the Patanjali Foods Limited conference call. Please stay connected, the call will begin shortly. Ladies and gentlemen, we are connected for the Patanjali Foods Limited conference call. Please stay connected, the call will begin shortly. Foreign. Good morning ladies and gentlemen and welcome to The Patanchary Foods Limited Q3FY26 earnings conference call hosted by Strategic Growth Advisor. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded before we proceed. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call.
These statements are not the guarantee of future performance and involve risk and uncertainties that are difficult to predict. I now hand the conference over to Mr. Sanjeev Astana, CEO Patanjali Foods Limited. Thank you. And over to you sir.
Sanjeev Kumar Asthana — Chief Executive Officer
Thank you and good morning to everyone. A very warm welcome to Patanili Food Limited’s call to discuss the results for the third quarter and nine months ended FY26. I’m joined by the company’s CFO Kumar Rajesh Ji along with Mr. Priyandu Jha from the Investor Relations team and our IR partner Strategic Growth Advisors. We have uploaded the results collateral on the stock exchanges as well as the company’s website for your reference. Let me begin by giving a quick. Snapshot of our financial performance during the. Course of this call. We will be referring to standalone financials. During Q3 of FY26 the company delivered the highest ever revenue from operations of rupees 10483.71 crores. Registering year on year growth of 16.53%. The total EBITDA excluding the exceptional items for the quarter IT stood at 492.06 crores with a margin of 4.69%. While profit before tax was rupees 364.54 crores translating into a PBT margin of 3.46%. Please note the impact of labor code during Q3 stood at rupees 30.19 crores. This has been classified under the exceptional items. The company also delivered the highest ever revenue from operations for the nine months of FY26 for with reported revenue from operations amounting to rupees 29013.98 crores.
Total EBITDA excluding exceptional items for the period was rupees 1429.56 crores with a margin of 4.93% and profit before tax is stood at rupees 1118.24 crores translating into a PBD margin of a Grop approximately 3.84%. Let me now give an overview of the operating environment of Q3FY26. Q3FY26 was a period of transition and execution largely influenced by the rollout of GST 2.0 reforms. The months of September and October experienced temporary trade disruptions due to repricing actions, packaging updates and operational adjustments. By November, inventory levels began to stabilize. During the quarter we introduced higher drainage packs, revised pricing to pass on the GST related benefits to consumers.
We anticipate a stronger volume recovery ahead with the positive effects of GST rate reductions expected to become more evident in the upcoming quarters. The rural consumption continues to outperform urban demand for the seventh straight quarter. However, we are now seeing a robust rebound in the urban consumption as well, supported by rising disposable incomes, particularly benefiting the key food categories and the positive impacts from revised direct and indirect taxation measures. The quarter was also benefited from the festive season with Diwali acting as a key demand catalyst. Across categories, festive led purchases were supported by positive consumer sentiment while the GST led price corrections improved affordability and further supported on the cost front, the palm oil prices declined materially by 12.6% on a year on year basis with a.
Sequential moderation of 3.7% during the quarter. In December 25 the palm oil imports were down 20% while soybean oil imports increased by 20.2% reflecting a shift in the edible oil basket. Looking ahead, the pricing pressures are expected to persist amid tightening global vegetable oil supplies. Wheat prices remain rangebound with no significant movement supported by comfortable supply levels in the physical markets. The government’s intervention schemes continued to effectively cap price increases. During Q3. Sugar prices stayed firm while supply conditions remained comfortable. Festive demand provided the price support. Let me now walk you through the segment wise performance during Q3 of FY26 for the arable oil segment, the quarterly revenue stood at rupees 7335.71 crores registering 8.98% year on year growth with EBITDA margin for the segment was 2.39%. The primary growth driver in edible oil. Is our branded oil such as Ruchi Gold, Mahakosh and Sunridge. In the nine months of FY26. Each of these brands recorded double digit. Growth in sales value. It is notable that nearly 85% of total edible oil sales now come from branded edible oils driven by strong marketing initiatives and impactful brand endorsements. In Q3 FY26 the palm oil prices decreased considerably. India’s palm oil imports fell to an eight month low in December mainly due to seasonal demand and increased purchases of rival oils such as soy oil and sunflower oil. Palm Oil Imports typically India’s palm oil. Imports typically moderate during the winter months. As the tropical oil solidifies at lower temperature limiting its use in the northern parts of the country and north India continues to be a strong area of preference. For the nine months our revenue stood at 20,989.43 crores registering 16.55% year on year. Growth in EBITDA margin for the segment was 2.57%. For oil palm plantation business the segmental revenue stood at 418crores with margin of 22.47%. For nine months FY26 revenue were 16.10crores. With an EBITDA margin of 21.53%. At the end of the calendar year the area under cultivation stood at 1,8000 hectares with nearly 39% of plantation in. Prime yield years of 7 to 25 years. Coming to our FMCG segment, the quarterly revenue stood at rupees 3248 crores reflecting 38.93% year on year growth and a sequential growth of 12.31%. In Q3.26, EBITDA margin came in at 10.88%. On nine month basis of FY26 revenue. Stored at rupees 8297 crore with an. EBITDA margin of 11.06%. The FMCG segment contributed 30.68% of revenues in Q3 FY26 while contributing nearly 66.33% of EBITDA in Q3 of FY26 during the quarter within the FMCG segment, biscuits reported revenue of 490 crores with a. Year on year growth of 26.4%. Dood biscuit accounted for nearly 70% of. Biscuit sales in the nine month of FY26. The revenues from the biscuit brand dude surpassed FY25 levels with cumulative sales crossing 1000 crores. The narial biscuit continues to gain traction. Distribution is the key in driving the. Sales in this category. We are also strategizing on strengthening our reach. In the southern region, staple generated revenue of Rupees 1255 crores growing at 68.70% on year on year basis. This increment weighed upon our margin profile for the segment. The revised GHEE strategy delivered encouraging results. With the category reporting a healthy performance. Driven by festive and winter season demand. The revenues stood at 467 crores in Q3FY26 reflecting quarter on quarter growth or 21% and year on year growth of 46%. Within nutraceuticals, the general nutrition showed increased customer acceptance. We have undertaken multiple targeted initiatives to further strengthen this category and expand its reach. Additionally, our Vadya enrollment program is progressing as planned and we expect it to begin contributing meaningfully to the growth in the coming quarters. Our HPC categories generated a total revenue of 627 crores with dental care leading the pack at 339.27 crores followed by skin care at 155 crores, home care at 77 crores and hair care and other products generating revenue of 54.78 crores.
We constantly evaluate our portfolio that resonate with Patagli’s ethos. In line with this philosophy, we introduced Date Almond Spread, Gold Cathedral and yellow mustard oil in the FMCG category. In the HPC category we launched new variants across shampoos, soaps, detergents and creams. Which have received encouraging consumer response. The Keshe Karthi Sundaria product range continues to gain strong traction reflecting increasing acceptance of Patanjali’s premium offering. Distribution remains the core strength of our business and we continue to focus on expanding our omnichannel reach. Over the last calendar year we added an estimated 0.2 million to 0.25 million new retail outlets, now present at over 2 million retail outlets. We are also intensifying our efforts to. Strengthen distribution in our core markets to drive higher penetration throughout. In parallel, we are scaling our presence across modern trade, e commerce and quick commerce platforms with products available on Zepto, BigBasket, Amazon, JioMart and other leading channels. Now, commenting on the outlook from a demand perspective, we are hopeful that at the end of FY26 could be strong, primarily supported by favorable macro tailwinds. The demand benefits are likely to accrue progressively over the coming months supported by improved affordability, wider distribution and a continued shift from unbranded to branded consumption. Together, these factors position the company well to capture the incremental demand and deliver a stronger performance in the coming quarters.
Further, GST 2.0 reforms are likely to stimulate consumption over time. Urban demand is expected to strengthen in. The coming quarters, aided by easing inflationary pressure and the positive impact of revised direct and indirect taxation measures, which should support discretionary spending. On the rural front, we anticipate sustained growth momentum primarily supported by a healthy Kharif output moderating inflation and continued support from the government welfare schemes that are enhancing disposable incomes. Together, these factors provide us with greater. Confidence in demand recovery and volume growth across categories. With this, I conclude my opening remarks. And open the floor for the Q and A session.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two Participants, you are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have the first question from the line of Avnish Roy from Nuama Wealth. Please go ahead.
Abneesh Roy
Thanks. My first question is on biscuits, toothpaste and hair oil. If you could tell us in terms of GST pass through, have you taken the grammage route or have you taken the price cut route? For example biscuits. I think some regional players are still operating at 4.5 and 9 rupee while the number one player has transitioned fully to 5 and 10. So wanted to understand that for each of the three categories. What have you done? Toothpaste, share oils and biscuits. Thank you.
operator
Hello sir,
Abneesh Roy
am I audible?
Sanjeev Kumar Asthana
Oh, I’m sorry, I’m sorry, this phone. Went on a mute. No, to answer your question straight up, that the biscuits we increased, you know, the grammage and in case of shampoo and hair oil, the price benefit was transferred to the pricing itself.
Abneesh Roy
And in terms of outlook, how do you expect toothpaste competition? For example, last one year toothpaste competitive intensity, promotional intensity has been high. And there is the LUP, the GST benefit also because 30, 40% for the industry leader at least is LUP and they are adding back grame is there if you could comment. How do you see toothpaste industry volume growth and competitive intensity in FY27 and Q4?
Sanjeev Kumar Asthana
No. So competition is fairly intense. That is straightforward and you know it’s pretty much since the growth is very. Limited, you know, anywhere between 3 and 5% so that continues to grow stronger. Our sort of dental care business has done exceedingly well in the quarter. We did nearly 340 crores of business. In the dental care and we continue. To you know, gain quite substantial growth. If I were to compare the dental care versus the last year Q3 versus. Q3 of last year, it’s almost 116 crores up. And this momentum is driven by two counts. One is the multiple variants that we used, the new brand ambassadors that we got, the packaging change, some of that which were introduced and very strong traction that we have in B and C towns as well as the rural areas. So that has been a very redeeming feature. And while the market overall, the category may continue to grow between 3 and 5, our target clearly is that we want to exceed 15% is what we had set on the overall basis as a growth objective for HPC and on a fully annualized basis.
I mean this will take us what we said that will take 18 months to take the benefit of the margins as well as the growth. But I’m pretty confident that we should, the time that we took over the business, we should be pretty much close to 15% growth rate from that time.
Abneesh Roy
So thanks, that’s all for me. Thank you.
operator
Thank you. We have the next question from the line of Abhishek Mathur from Systematics. Please go ahead.
Abhishek Mathur
Yeah. Hi, good morning Sanjeev sir, thank you for the opportunity. First, just a bookkeeping question. If you can give the EBITDA absolute numbers for the quarter for hpc, biscuits, staples and ethnic foods.
Sanjeev Kumar Asthana
So ebitda, the breakup of each of these I can certainly give you. So for the non food it’s 157 crores and the margin is about 24.95%. Likewise for the biscuit business our EBITDA. Is 47 crores margin is 9.57% foods. The EBITDA is 151 crores, the margin is 7.54%. And edible oil is the EBITDA is 175 crores. The margin is 2.4% to be exact.
Abhishek Mathur
Great sir, thanks for that. Secondly, just wanted to check, you know, there’s been a strong growth turnaround in our foods businesses, both staples and the higher margin foods. So how does one think about growth in this and biscuits also how does one think about growth in these segments going ahead? How are you looking at this turnaround and is it sustainable and what is the steady state growth that we have that we should think about in terms of biscuits, staples and the higher margin food segments?
Sanjeev Kumar Asthana
Look, I think the rational expectation and. Pardon my cough and cold, I mean Delhi is like bad flu right now. But two parts. One is that our projected long term growth is Very clear that in the food space we will grow between 8. To 10% will be our growth rate. Margin construct in the food business will be between 8 and 10% as well. That EBITDA margin, that’s what we’re targeting and progressively we continue to sort of. Improve that in the HPC business. When we took over the business the margin was about 18%. EBITDA was with the parent company. We had targeted that we will take that 18% by 200 basis points over next 18 months. But you know, based on several changes. That were introduced, we’ve been able to. Accomplish almost nearly 25% EBITDA in this quarter. Now on a sustainable basis, the question that you’re asking is that how it’s going to grow. So longer term the guidance is very clear that food business 8 to 10% growth, HPC business 15% growth, which is a high margin category, high category, high margin category for us and wedge oil business, anywhere between 3 and 4% growth is what we target. And where in the volume terms and. Value of course is determinant of multiple, you know, how the values ultimately behave. So that is pretty much the set course, how the company is looking at its businesses. And yes, because of the GST relief, because of seasonality, part of it and certain seasonal changes that occur, some quarters you will see a better performance. But broadly that is a directional outlook that we have.
Abhishek Mathur
Great sir. And a final one if I can squeeze in on the edible oil segment. So now the September last year import duty hike would be in the base anniversaries and we have talked about palm oil prices trending lower, albeit you have mentioned some pressures in terms of pricing. So in these with this scenario, how does one think about the margins in the palm oil business and in the edible oil business going forward? That’s it from me. Thanks.
Sanjeev Kumar Asthana
No, that’s a great question and I was hoping that we will do that because last year, September what had there was a, you know, the margin construct was very positive. We had one off gain that we. Got on account of the duty increase. Of nearly 22% gain that accrued in September 25th. And that was more a one time gain. Likewise. So previous, you know, Q3 of FY25, our margins were 581 crores. And on a base sale of 9,000, no, our margins were 364 crores on a revenue of 6,731 crores, about nearly five and a half percent. But as I mentioned very often that the veg oil business, edible oil business by its very Nature our targeted EBITDA stream is between 2 and 4%. Our the orientation in terms of the planning that is entirely done by the company is on the volume growth of between 3 and 4%. We are seeing consolidation in that segment. We are seeing that the consumers are gravitating towards the branded players.
The larger players have the benefit of managing their treasury and working capital and risk better and superior. So there is a consolidation happening in that space. And but the performance evaluation on a quarter, on quarter basis is always a challenge because of the requirements of accounting and the audit. You have to take a particular price on the mark to market at the end of a quarter and that starts to change which is what happened in this quarter as well. And after that the uptick has happened. So I’m pretty confident of not only. Remaining within the framework of the objectives. That we define for ourselves, but also maintaining that closer to 4% is what we target. And I’m witnessing that there’s some change already quite a foot right now as. We speak as well in last three weeks that the prices have started moving up. So we should gain some. All the benefits should accrue in this quarter. So that is broadly the direction we have and the interplay between Palm, Soya. And Sun because three big import items. That will always happen. So Palm because it had gone down because of the exceptionally high prices which had exceeded soy and son. So that will happen. But broadly on the overall category basis this is what we’re targeting. And progressively we are expecting with the 15 and 20% growth in food and non food and the other businesses, I think we should head closer to the stated objective of 5050 between the edible oils and the non edible oils portion of it. So for example our margin construct if you were to look at right now also 2/3 of the margin is now accruing from non edible oil proportion.
So nearly, if I were to say that the 71% margin came from the FMCG segment in this quarter and about 35.6% margin came from the edible oil, whereas the edible oil segment contributed 69% and the FMCG segment contributed about 30% 31%. So this spread will consistently as we grow our revenues on the FMCG side and we reach closer to the growth rates that we’ve discussed closer to about 20,000 crore. I think at that level this margin profile of the company going towards the double digit EBITDA that we’re targeting I think will pretty much become a reality.
And that’s what the objective the company is looking at Right.
Abhishek Mathur
Great sir, thanks for the detailed answer and all the best. Thanks.
operator
Thank you. A reminder to all the participants, you may press star and one to ask a question. We have the next question from the line of Sirish Pardesi from Motilal Oswal Financial Services. Please go ahead.
Shirish Pardeshi
Hi team, good morning. Thank you for the opportunity. Sanjeev. Sir, my first question is on edible oil. You mentioned that the imports generally quarter three declines for palm. Does that mean the system and even us have a higher inventory at the lower price or do you think we are just managing? So maybe if there is a price increase we will have to take the price increase as and when the price increases happen for the imports.
Sanjeev Kumar Asthana
Yes, that’s right. So Sirish, what will happen is that the, you know, the. You mark down the inventory to the quarter end pricing. That’s the accounting part. You know, Mr. Kumar Rajesh will explain better. But we have to mark it down and bring it to a particular level. And if thereafter the prices increase then typically that benefit accrues to the companies.
Kumar Rajesh
Okay. The second thing is that even soya and sunflower is also becoming very lucrative in India. So does that mean that the shift will happen from palm to sunflower or soya or. That is not correct way to look at it.
Sanjeev Kumar Asthana
So I would say that your the. The thesis is correct that the perceived the value for soya and sun is. At higher level where people see it. As more premium oils and Palmer’s lesser premium or in some cases the attaching the health connotations etc. All three are set to grow. The interplay between them is the prices at the origin in the countries from where they’re exported. And the global edible oil complex. So many times that undergoes a change on which there’s very little control the companies have. So then what happens that the consumers might switch between one versus the other and. And this could happen. But the pecking order is very clear that sunflower is typically the highest price. The the soya bean is at next to it and the palm is the cheapest.
Now occasionally it might happen that you. Know, the palm may exceed or soya may change or otherwise depending on supply situation. But broadly that is in 8 out of 10 cases that is how it will remain. So some insecurity, for example out of Russia or Ukraine supply suddenly the prices might spike for sunflower. But broadly that is a spread which. And so some shifting happens. But consumers are largely you know this price inelastic. So especially in case of sunflower which is largely sold through the branded form the branded players, the consumers will stay with sunflower oil. They will not switch to palm oil or soya. It is the industrial consumers typically who tend to switch. So for example, when the palm went too high, so people started switching from the industrial user, the B2B consumer, they started switching from palm to soya. So that may happen, but otherwise not. Too much of change. This will pretty much remain same.
Shirish Pardeshi
So one follow up on this, we have three, four brands, Sunreach and Gucci Gold. So within these four categories or subcategories, which has grown faster in quarter three.
Sanjeev Kumar Asthana
So quarter three, the largest size that we clearly have is the Mah Kosh. And so sunridge we have made very big inroads. We are nearly today doing, you know, close to, from a, from that perspective of doing nearly 12,000 tons a month now. And we will continue to, you know, gain momentum, which is a sunflower oil. So that has been the fastest growth on a percentage basis. But in absolute terms our growth has been, you know, largely through soya and palm.
Shirish Pardeshi
Okay, my second question is on FMCG. You mentioned that biscuit growth is about 26.4%. Is that driven by the volume and grammatical changes? I mean I’m just trying to understand is the volume and price is half and half or volume is higher.
Sanjeev Kumar Asthana
So I mean it’s obviously very volume driven without a question. So it is not price is not the bigger driver in this. As was mentioning earlier that we actually in case of biscuits we increase the. Grammage post the gst. So largely it is not driven by any price inflation. It is entirely on the volume growth. And this has come through distribution expansion and natural velocity that we had on the growth rates of the biscuits market. So overall that has been a very redeeming feature for the biscuits business because we are outpacing the industry by a very substantial wide margin.
Shirish Pardeshi
Okay. And the last question on hpc, I think you mentioned that we are trying to ramp up in South. So if I look back overall as a company, what south contribution was there including all the MCG categories a year before and now what your target is to distribution.
Sanjeev Kumar Asthana
So there is a very good pickups. Yeah, sure. So but I just want to because this is very often discussed so if I would look at for the overall distribution but this is obviously not a correct reflection because palm oil is, you know, very substantive. Our Ruchi Gold sells largely in south. Which is a branded play. So I’ll just give the overall numbers just for benefit of everyone that, you know, I was just pulling out that why don’t we consolidate everything and see where the numbers stack up. So zone wise mix mix, 33% is. Contributed by south, the largest. If I were to look at the overall, including edible oils and FMC, north is 31%, east is 18%, central is. 9 and west is 9. Now if I were to look at the FMCG part of it, if I were to look purely at the fmcg, I would say that this would, this number would be closer to about 10% and that has got on a lower base that is growing at 15 to 18%. You know, now and there we are. Expanding, putting a lot of energy where. This base of growth we want to establish and gain momentum and lot of products are now gaining a lot of traction. So for example our food products, some of the, you know, the HPC products now, so they’re getting a lot of traction and we are quite confident that the reach that we have in the distribution, the cross selling amongst the distributors and retail that we are pulling, you know, work towards. So there’s a reasonable amount of confidence that we should be able to pull through on that and put a good growth rate for South India.
Shirish Pardeshi
Okay, thank you and all the best.
Sanjeev Kumar Asthana
Thank you.
operator
Thank you. We have the next question from the line of Tanya Sharma from TS Capital. Please go ahead.
Unidentified Participant
Hello. Good morning sir. So I had couple of questions. So first staple continue to be a drag and that is little brand loyalty in this category. So what are plans from the FMCG mix perspective.
Sanjeev Kumar Asthana
So broadly? What has happened over a period of time? Staples, you know, have always been a. Revenue driver unless from a margin perspective. As you rightly mentioned, that there’s a bit of lower margin compared to, compared to the ethnic foods. So clearly as you, as I mentioned. In my opening remarks in the release that we gave as well that for. Example in Ghee we had exponential growth. You know, of course it was led, you know, to a large extent by the festival demand, etc. And some of the promos that we ran. So there was a huge pickup in the Ghee business. Likewise, you know, so in terms of the like we did almost 470 crores. 468 crores in ghee in the last quarter and it was nearly jumped. So driven a lot by, you know, the overall buoyancy that we saw on the demand side. So there is a lot of effort that is happening towards pulling businesses on the ethnic food side on the high level. But at the same time these staples have a particular way of sort of coming in because the demand is not in the sense that it’s not very defined. So it is also seasonal and it. Is very price driven as well. So many times if they find a greater value in what we are offering, so the demand pickup is very suddenly that people will be buying a lot more because there the brand loyalty is. Lesser and the focus is lot more. On the in terms of the value proposition that you’re offering on the staples pricing. So my sense is the mix will not dramatically alter. The mix will pretty much remain same. But progressively as the ethnic foods category will continue to increase, I think we will start seeing better margin construct as well in the overall foods category as we speak.
Unidentified Participant
Okay, sir, sir, next one. Ghee can be very cyclical in nature. So how do we manage consistent consistency in procurement throughout the year?
Sanjeev Kumar Asthana
So ghee. So what typically happens in ghee is that the sell side, as I mentioned, there’s some cyclicity, not volatility in pricing. But seasonality uptick is always there. The procurement is very consistent. So there is a season in which you are able to procure. So that market is of course depends a lot on supply side and how the demand, you know, for the cow butter etc is there. So that we have to do. But the supply chain is fairly well oiled machine. There are, you know, there’s a large vendor base. There are companies who supply on a consistent basis the cow butter. To us, we are, we secure our supplies over a period of time. So that works in general quite well. And there is some bit of pricing change there as well.
So that may have some impact on the margin profile of the business. And that is one reason why the raw material pricing plays a very crucial role in businesses where business verticals like biscuits and ghee and you know, some of these areas where you might see certain degree of variation and which is why we always target that 8 to 10% is a good blend of margin between ethnic and the staples food. We should be able to generate constantly that.
Unidentified Participant
Okay, sir, got it. And sir, one last thing. Do we have also any plan to bring other dairy related products?
Sanjeev Kumar Asthana
No, we have no immediate plans of introducing new dairy products. We have enough on the plate. We have of course that innovation constantly happens. We want to introduce new products. But on the dairy side I would imagine the variations of ghee will certainly do. But products like, you know, butter or cheese or liquid milk or flavored milk, etc. That category perhaps there’s no immediate plan for that.
Unidentified Participant
Okay, so that answers my questions. Thank you so much.
operator
Thank you. A reminder to all the participants, you may press star and one to Ask a question. Question. We have the next question from the line of Priya Karni from CN Capital. Please go ahead.
Unidentified Participant
Hello. Am I audible, sir?
operator
Yes, you are.
Unidentified Participant
Yes sir. So my question is like on the product side, for which product lines are we planning to expand? So we have not had many new product innovations and the new agency brands are giving competition like companies like give us this competition. So what is your take on this? And on the product innovation side?
Sanjeev Kumar Asthana
So we have, you know, it’s a. There’S a pipeline of products that are. Constantly planned and we continue to introduce new variants. You know, sku. Within the SKU itself, there’s a constant mixing of new products, new SKUs, new ideas in terms of blends, etc. As was just mentioning and also responding. To the vertical through which the channel through which it is getting distributed. So for example, as the change in E Comm and Quickcom has defined and. Redefined in the way consumers shop and. Likewise for the modern trade and general trade. And so to avoid the conflict, many. Times those adjustments are done. Some products on a trial basis largely are tried out first on the E Commerce and then on the modern trade and then finally to the gt. But to answer your question specifically, as I mentioned that it’s a constant work. Which is happening, we will, you will. See a slew of products that will get launched. So this quarter, for example, other than. What I mentioned in the call, there. Is, you will see that in the. Biscuits category we will have multiple premium. Products that will get launched. Now I would not be able to give the details on this call, but that is under the words likewise for. The, for the HPC category. You know, we are planning at least three more new product launches which will. Happen over next six months in the. Skin care and some variations in the dental side as well as in the hair care. So a lot of work in the home care category. So there is a constant sort of product pipeline. Yes, competition is there from the new age companies and yes, they are doing a great job. And so we will do our job and we will be found nimble, we will be found quick and we will. Be able to respond to any challenges.
Unidentified Participant
So my last question is about like last year we had signed up multiple brand ambassadors. So just wanted to ask that when do their contracts expire and are we likely to review it and if yes, what will be the cost and the tenure of the contract?
Sanjeev Kumar Asthana
So cost and I would not share. On this call and that’s confidential, but. The tenure continues to run with all the five ambassadors. Mr. Dhoni is signed up for additional two years. The contract for Mrs. Shilpa Shetty continues. And likewise both for Tiger Shroff and Tamannabatia and similarly for Mr. Shahid Kapoor that also continues. So they’re pretty much as we speak right now. The contracts are very much on and activ.
Unidentified Participant
Okay, sir, got it. Thank you. All the best.
Sanjeev Kumar Asthana
Thank you.
operator
Thank you. A reminder to all the participants, you may press star and one to ask a question. We have the next question from the line of Shagun Kapra, an individual investor. Please go ahead.
Unidentified Participant
Good morning sir. I wanted to understand regarding area under cultivation. So it is a approximately 16% for the total area allocated. So could you guide how much hectares are we going to add in the area under cultivation?
Sanjeev Kumar Asthana
You are talking of oil palm, right?
Unidentified Participant
Yes, sir.
Sanjeev Kumar Asthana
Okay, so oil pump, currently what we have is that 1 lakh 8,000 hectares which has been planted this year. Our target is that we should do. Close to 40,000 additional hectares which is. A mix of 20,000 in northeastern part of the country and 20,000 in the south India. And so that we are for that we need to prepare well in advance on getting our sprouts and nurseries and others. And we are very much on course for that. But I’m saying this year means 26, 27. I’m talking now.
Unidentified Participant
Yes. And this, the area under cultivation, the area is being allocated by the government. So is it a long term lease and how much amount does it cost us?
Sanjeev Kumar Asthana
So we don’t pay any amount. What the government does is that so we of course to give an answer to that, it’s in perpetuity. So it’s for 35 years is the life cycle of the oil pump. And after, when it gets closer to the trees having lived their life then you can extend that by if you do the replanting. So there is no tenure fix for that for the lease because the land continues to be owned by the farmer only. And we simply, you know, work in close collaboration with the farmer and work alongside them for 35 years.
So that is almost, it can be seen as perpetuity because government is not. Asking to do anything on that. We’re basically saying that this company is. Allowed to do the oil palm plantation. Work along with the farmers and ensure that they are able to 100%, you. Know, work on this. That’s it.
Unidentified Participant
Okay, thank you sir.
Sanjeev Kumar Asthana
Thank you.
operator
Thank you. A reminder to all the participants, you may press Star and one to ask a question. As there are no further questions from the participants. I now hand the conference back to the management for closing comments. Thank you. And over to you, sir.
Sanjeev Kumar Asthana
So with this I conclude the call. I sincerely thank you for your continued. Support and trust in Patanjali Foods. If you have any further queries, please contact.
operator
The line for Mrs. Sanjeev has been disconnected. Ladies and gentlemen, please stay connected while we join them back. Thank you everyone. On behalf of Patanjali Foods Ltd. That concludes this conference. Thank you for joining with us today. And you may now disconnect your lines.
Sanjeev Kumar Asthana
Thank you.