Baba Ramdev’s Patanjali Foods shines on the outskirts, rural consumption thrives

Patanjali Food’s nutraceuticals business, which primarily consists of supplements like chawanprash and other Ayurvedic supplements, has seen a significant growth of 57.32 percent year-on-year. The business has witnessed profitability for the first time, boosting the company’s overall revenue. The company also made significant rural inroads during Q2FY25. Embracing fast commerce and e-commerce has also helped the company expand its market reach.

Patanjali Foods Ltd. has declared impressive financial figures for Q2FY25, showing the overall stability of the company, despite adverse circumstances.

The company’s revenue in Q2FY25 was reported at Rs 8,154.19 crore; marking a modest year-on-year growth of 4.25 percent. Even as the food, consumer goods and edible oil segments experience volatility, the company has been able to maintain sales. Heavy rains also affected consumer confidence during the quarter. Patanjali’s rural consumption growth continued to outpace urban consumption, contributing to income growth.

The company has shared a peak EBITDA of Rs 493.86 crore, up 17.81 percent year-on-year, with a margin of 6.06 percent. This also shows an improvement in cost management and its successive orientation towards the high-margin segment. PAT has been Rs 308.97 crore and has grown 21.38 per cent year-on-year, reflecting cost controls put in place to maintain profitability.

In individual segments, the food and consumer goods business has shared revenues worth Rs 2,303 crore. Products such as staple foods, biscuits and nutraceuticals performed competitively in an otherwise flat FMCG market.

Revenue through the nutraceuticals business soared significantly by 57.32 percent year-on-year. The business has also become profitable for the first time, making it the company’s fastest growing area.

A diversified product portfolio along with strategic acquisitions in recent times have boosted Patanjali Foods’ resilience. Cautious in terms of potential volatility in core business segments, Patanjali Foods is well positioned for growth. Shares of Patanjali Food are trading about 4 per cent lower since its last session at Rs 1,709 apiece.

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