Patanjali Foods’ Q4: Rural Markets Shine, Profit Surges 74%, Dividend Sweetens the Deal

Patanjali Foods Ltd has posted a robust 74% year-on-year rise in standalone net profit in the fourth quarter of FY25, at ₹358.5 crore, as compared to ₹206.3 crore in the corresponding quarter of last year. The company's operating revenue also increased robustly at 17.8% to ₹9,692.2 crore in the March quarter.

 

The profit increase was supported by a favorable pricing environment and a strong growth in gross profit, which grew 37.2% to ₹1,656.4 crore. EBITDA for the quarter was ₹568.9 crore, a growth of 14.5% compared to the same quarter last year. Patanjali Foods said rural markets outpaced urban markets for the fifth consecutive quarter, as rural demand grew four times more than urban demand. The company, however, said overall consumer demand continued to be weak as households were holding back savings in light of easing inflation.

 

The company also observed a consistent consumption pattern towards new commerce, e-commerce, and fast commerce platforms, which reflects more demand for convenience. Patanjali Foods increased its global presence, registering export revenues of ₹73.4 crore in Q4FY25, and now has a presence in 29 countries.

 

The Company's Board of Directors has recommended final dividend of Rs. 2/- (i.e. 100 %) per equity share for the financial year ended March 31, 2025 to the record shareholders as of record date for declaration by the Company and the same will be paid subject to the shareholders' approval in the ensuing

Company's Annual General Meeting. Interim dividend has already been distributed by the Company of Rs. 8/- (i.e. 400%) on every equity share for the year ended on March 31, 2025.

 

In the future, Patanjali Foods expects demand to continue picking up, aided by government initiatives and a favorable monsoon outlook, which may once again spur rural consumption and result in a recovery in the second half of FY26.

 

Source: Moneycontrol