Patanjali Foods Q3 Results: Net Profit Soars 71% YoY to ₹370 Crore; Revenue Rises 15%
Patanjali Foods Limited, led by Baba Ramdev, has reported a stellar performance for the third quarter of the financial year 2024-25. The company’s net profit surged by 71% year-on-year (YoY) to ₹370 crore, compared to ₹217 crore in the same quarter last year. The impressive growth in profitability highlights the company’s strong operational performance and strategic business initiatives.
The company’s revenue from operations increased by 15% YoY, reaching ₹9,103 crore in the October-December quarter, compared to ₹7,911 crore in the previous year. The robust revenue growth was driven primarily by the edible oils segment, which witnessed a significant surge in sales.
Key Highlights of Patanjali Foods Q3 Results
- Net profit: ₹370 crore, up 71% YoY
- Revenue from operations: ₹9,103 crore, up 15% YoY
- Total expenses: ₹8,653 crore, up 13% YoY
- Edible oils segment revenue: ₹6,717 crore, up 23% YoY
- FMCG segment revenue: ₹2,038 crore, down 18.4% YoY
- Market capitalization: ₹67,088.51 crore (as of February 10, 2025)
Strong Revenue Growth Driven by Edible Oils Segment
The edible oils segment remains the primary revenue driver for Patanjali Foods, contributing significantly to the overall growth. The segment reported a 23% YoY increase in revenue, reaching ₹6,717 crore, compared to ₹5,483 crore in the same quarter last year. This strong performance is attributed to rising demand for healthy cooking oils, aggressive marketing, and the company’s strategic pricing.
However, the fast-moving consumer goods (FMCG) segment faced a downturn, with revenues declining by 18.4% YoY to ₹2,038 crore, compared to ₹2,499 crore in the corresponding quarter of the previous year. Despite this decline, the company remains optimistic about the long-term growth potential of its FMCG business.
Rising Expenses Impacting Margins
Patanjali Foods’ total expenses grew by 13% YoY to ₹8,653 crore, compared to ₹7,652 crore in the previous year’s third quarter. The rise in expenses was mainly due to the increase in the cost of raw materials, which impacted overall margins. However, the company’s strong revenue growth helped offset these higher costs, leading to the impressive profit surge.
Patanjali Foods Share Price Performance
The company’s stock has shown resilience in the market. On February 10, 2025, Patanjali Foods’ share price closed 0.42% higher at ₹1,853.30, compared to ₹1,845.50 in the previous trading session.
- 1-Year Return: 19%
- 5-Year Return: 78%
- Year-to-Date (YTD) Performance: Up 2.49%
- 52-Week High: ₹2,030 (September 4, 2024)
- 52-Week Low: ₹1,170.10 (June 4, 2024)
Investors have shown confidence in the company’s growth potential, as reflected in its market capitalization of ₹67,088.51 crore as of the latest market close.
Financial Ratios of Patanjali Foods (Q3 FY25)
| Financial Metric | Value |
|---|---|
| Revenue Growth (YoY) | 15% |
| Net Profit Growth (YoY) | 71% |
| EBITDA Margin | ~10-12% (estimated) |
| P/E Ratio (Trailing) | ~40-45x |
| ROE (Return on Equity) | ~15-18% |
| Debt-to-Equity Ratio | ~0.3-0.5x |
Future Outlook: What Lies Ahead for Patanjali Foods?
The strong performance in the edible oils segment continues to be the key growth driver for Patanjali Foods. The company is focusing on expanding its product portfolio, improving supply chain efficiency, and enhancing brand visibility to strengthen its market position.
Despite the FMCG segment’s decline, the company remains optimistic about future recovery, driven by growing consumer demand for natural and ayurvedic products. Additionally, the expansion of distribution networks and increased investments in product innovation could help boost future revenues.
Investors and market analysts will closely watch Patanjali Foods’ strategic moves in the coming quarters, as it aims to balance growth across all its business segments and maintain its profitability.
Conclusion
Patanjali Foods has delivered a strong Q3 performance, with net profits soaring by 71% and revenue growing by 15% YoY. The edible oils segment remains the primary growth driver, while the FMCG segment faces short-term challenges. With a robust stock market performance and strategic business initiatives, the company is well-positioned for future growth.
For investors, Patanjali Foods remains an attractive stock, given its strong revenue growth, improving profitability, and long-term business potential. However, challenges such as rising input costs and volatility in FMCG sales need to be monitored closely.
For more market insights, follow our blog.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.