Patanjali Foods (PATANJALI) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 delivered a healthy performance with double-digit margin growth at EBITDA and PAT levels, despite challenging market conditions such as erratic rainfall and raw material price pressures.

• Revenue from operations reached ₹8,154.19 crore, EBITDA hit a record ₹493.86 crore, and PAT was ₹308.97 crore, with an interim dividend of ₹8 per share declared.

• The quarter marked the highest operating EBITDA since Patanjali Group management took over.

• Board approved November 1, 2024, as the transfer date for the HPC business.

• Celebrity brand ambassadors were onboarded to boost branding and marketing.

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: ₹493.86 crore, up 17.81% YoY; PAT: ₹308.97 crore, up 21.38% YoY; EBITDA margin: 6.06%; PAT margin: 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.

• Other income rose 80% QoQ due to mark-to-market gains on mutual fund investments.

Outlook and guidance

• Expect improved performance in H2 FY25, driven by festive season, higher income, supportive government measures, and above-average monsoon.

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

• Integration of HPC business expected by early November, anticipated to enhance performance.

• Branding and marketing initiatives, including celebrity endorsements, are expected to drive further growth.

• Continued expansion in Oil Palm Plantation and new product launches signal a focus on diversification and rural market penetration.