Rural demand overtakes urban markets, Patanjali is competing with big companies in terms of earnings

Patanjali Business News: Patanjali Foods Limited (PFL) has announced its audited financial results for the quarter and financial year ended 31 March 2025. The company achieved the highest operating revenue of Rs 9,692.21 crore and Rs 568.88 crore in this quarter, with an operational margin of 5.87%. This performance reflects the company’s strong strategy and the growing demand in the market.

Consumer demand in rural India was faster in the fifth consecutive quarter as compared to urban areas. The rural demand grew four times faster than urban demand, although it saw a slight decrease on a quarterly basis. The company fully integrated the Home and Personal Care (HPC) section in November 2024, now performing with an impressive EBITDA margin of 15.74%. This section conforms to Patanjali’s contemporary, pure FMCG company’s strategy.

Gross benefits of the company increasing year after year

The company’s gross profit increased from Rs 1,206.92 crore to Rs 1,656.39 crore on a year-on-year basis, which shows an increase of 254 base points with a gross profit margin of 17.00% due to the favorable pricing environment. Post -tax benefits (PAT) increased a significant increase of 73.78% and the margin 121 was 3.68% with an increase of 121 base points.

Patanjali, strengthening his global reach, earned export revenue of Rs 73.44 crore in 29 countries. The neutrasuticals segment recorded an increase in consumer acceptance with a quarterly sales of Rs 19.42 crore, the result of strong advertising and product restoration initiatives. The company spent 3.36% of its Q4FY25 revenue on advertising and sales promotion, which reflects its aggressive approach to brand construction.

Patanjali strengthened distribution network in emerging channels

The industry saw significant changes in quantity towards emerging channels such as modern trade, e-commerce and quick commerce, which is due to convenience factor. Patanjali has taken steps to strengthen its distribution network in these emerging channels through targeted initiatives and deep engagement with channel partners.

The company earned a revenue of Rs 5.53 crore from the wind turbine power generation segment and continued using solar energy at its biscuit manufacturing plant in Bhagwanpur, Uttarakhand. Despite the reduction in inflation, the families preferred savings, resulting in a decrease in consumer demand.

Our focus is on quality, innovation and stability- Patanjali

Managing Director of Patanjali Foods Limited said, “Our focus is on quality, innovation and stability. Our strategic initiatives, especially in HPC and Neutrasuticals segments, are establishing us as a leading FMCG company.”

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