Patanjali Foods shares crash 20%, stock nearly halves in value in one year. What's ahead?

Synopsis

Patanjali Foods shares plunged 20% to a fresh 52-week low, extending their decline to nearly 50% from last year's peak. While the company said there were no material developments behind the sharp fall, technical analysts warned of further downside, with the next key support seen in the Rs 325–330 zone.

Shares of Patanjali Foods crashed 20% to hit a fresh 52-week low on Wednesday, with the stock nearly halving in value from the high hit in July last year.

The stock fell to a 52-week low of Rs 328.20 on the NSE, prompting the company to issue a clarification. Patanjali Foods said there were no material events, information or developments requiring disclosure that could explain the sharp price movement.

“The company continues to remain focused on its growth path and is carrying on its business operations in the ordinary course, while pursuing its business objective,” the company said in its clarification to stock exchanges.

Patanjali Foods shares later made some recovery, trading around 16% lower at Rs 345 apiece, as seen at around 1 pm. The stock has fallen nearly 19% in one month and 37% in 2026 so far.

Technical view on Patanjali Foods

“The RSI, which had been moving sideways, has also broken down, indicating strengthening bearish momentum. The DI lines have widened, with DI- positioned well above DI+ on the ADX indicator, highlighting strong seller dominance. Additionally, the stock is trading significantly below the lower Bollinger Band, reflecting heightened selling pressure,” he added.

On the downside, Shah sees the Rs 330–325 zone as the next key support. A decisive breach below this level could accelerate the decline towards Rs 310 in the short term. On the upside, the Rs 380–385 zone is likely to act as the immediate resistance, according to the analyst.

Patanjali Foods earnings snapshot

Also read | Patanjali Foods Q4 Results: Profit jumps 46% to Rs 524 crore despite margin pressure

Revenue from operations increased 17% year-on-year (YoY) and 6% sequentially to Rs 11,217 crore during the quarter. Despite the strong top-line performance, margins remained under pressure due to rising input costs.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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