FMCG stock jumps after Supreme Court rejects Income Tax Demand of ₹186 Cr

Prominent Midcap FMCG company is in focus after the Rs. 186 Crore tax demand from the Income Tax Department for Pre-CIRP was nullified by the Honorable Supreme Court.

Share Price Movement

With a market capitalization of Rs. 66,715 Crore, the stock of Patanjali Foods opened at Rs. 1827, the same level as yesterday’s close, and after opening it made a high of 1,848 up 1.14 percent.

Company Update

Supreme Court of India has dismissed the Special Leave Petition (SLP) filed by the Income Tax Department regarding the pre-corporate Insolvency Resolution Process ( CIRP ) with tax demands of Rs 186 Crores.

Earlier, the NCLT had refused the IT department’s demands, leading them to challenge it to the Bombay High Court, which upheld the NCLT’s ruling. With the Supreme Court now rejecting the IT Department’s Special Leave Petition (SLP), the Rs. 186 Crore tax demand against Patanjali Foods stands nullified.

Also read: IT stock under ₹100 jumps 4% after receiving patent for new data processing technology

Financial Highlights

The company reported a 15.06 percent YoY increase in revenue from Rs. 7,911 Crore in Q3FY24 to Rs. 9,103 Crore in Q3FY25. On a QoQ basis, the company reported an increase of 11.63 percent in revenue from Rs. 8,154 Crore in the previous quarter.

Their Net profit saw a significant increase of 70.96 percent YoY from Rs. 217 Crore to Rs. 371 Crore for the same period. On a QoQ basis, the company reported an increase of 20 percent in Net profit from Rs. 309 Crore in the previous quarter.

The Operating Profit Margin for Q3FY24 stood at 4.94 percent compared to 6.39 percent for Q3FY25, and the Net Profit Margin stood at 2.74 percent from 4.07 percent for the same period.

About the Company

Patanjali Foods Limited, formerly known as Ruchi Soya Industries Limited, is a prominent Indian multinational specializing in the food and beverage sector. Established in 1986 and headquartered in Indore, Madhya Pradesh, the company operates under the umbrella of Patanjali Ayurved. It offers a diverse range of products, including edible oils, biscuits, cookies, wheat flour, and more. Marketed under brands such as Patanjali, Nutrela, Mahakosh, Sunrich, and Ruchi Gold.

Written By Abhishek Das

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