Patanjali Foods (PATANJALI) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 reported double-digit margin growth at EBITDA and PAT levels, with revenue from operations reaching ₹8,154.19 crore and interim dividend of ₹8 per share declared, despite challenging market conditions and erratic rainfall impacting FMCG volumes and consumer demand.

• Board approved November 1, 2024, as the transfer date for the HPC business, with integration expected after regulatory and shareholder approvals.

• Edible Oils segment delivered strong profitability and led growth amid volatile markets.

• Celebrity brand ambassadors were onboarded to boost branding and marketing, and rapid expansion in Oil Palm Plantation was undertaken.

Financial highlights

• Q2 FY25 revenue from operations: ₹8,154.19 crore, up 4.25% YoY; total income: ₹8,198.53 crore, up 4.5% YoY.

• EBITDA reached a record ₹493.86 crore, up 17.81% YoY, with a margin of 6.06%; PAT was ₹308.97 crore, up 21.38% YoY, with a margin of 3.77%.

• H1 FY25 total income: ₹15,400.88 crore; EBITDA: ₹928.93 crore (up 47% YoY); PAT: ₹571.87 crore (up 67.07% YoY).

• Gross profit increased YoY from ₹1,021.26 crore to ₹1,292.81 crore, driven by favorable pricing.

• Interim dividend of ₹8 per equity share declared for FY25.

Outlook and guidance

• Branding and marketing initiatives, including celebrity endorsements, and continued expansion in Oil Palm Plantation and new product launches, are expected to drive further growth.

• Acquisition of HPC business from Patanjali Ayurved Limited for ₹1,100 crore, effective November 1, 2024, post CCI approval.

• Nutraceuticals division maintains revenue guidance of ₹100-125 crore for FY25 with a 25% margin.

• Edible oil margins expected to remain strong, with price increases benefiting upcoming quarters.

• Company expects continued growth in modern trade, quick commerce, and e-commerce channels.