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📊 Patanjali Foods Limited Q3 FY25 Financial Analysis & Key Insights 🚀

Lesson 92/151 | Study Time: 10 Min

Course: Quarterly Result Updates & Analysis

📊 Patanjali Foods Limited Q3 FY25 Financial Analysis & Key Insights 🚀

1️⃣ Financial Highlights

📈 Sales Growth

✅ Q3 FY25 Revenue from Operations: ₹9,103.13 Cr vs. Q3 FY24: ₹7,910.70 Cr → 📈 +15.07% YoY Growth
✅ 9M FY25 Revenue: ₹24,430.38 Cr
✅ Segment-wise Performance:

🌻 Edible Oils: ₹6,717.47 Cr (+22.5% YoY Growth ✅)
🥗 Food & FMCG: ₹2,037.61 Cr (📉 Down from ₹2,498.62 Cr in Q3 FY24)
🧴 Home & Personal Care (HPC): ₹420.36 Cr (📢 Newly Integrated)
🌍 Exports: ₹67.27 Cr (Sales in 29 Countries)

💰 Profit Margins & Growth

✅ Q3 FY25 EBITDA: ₹581.24 Cr (6.39% Margin) vs. ₹390.63 Cr in Q3 FY24 (🚀 +48.79% YoY Growth)
✅ 9M FY25 EBITDA: ₹1,510.17 Cr (6.18% Margin)
✅ Q3 FY25 PAT: ₹370.93 Cr (4.06% Margin) vs. ₹216.54 Cr in Q3 FY24 (🔥 +71.30% YoY Growth)
✅ 9M FY25 PAT: ₹937.78 Cr (3.84% Margin)

2️⃣ Profitability, Solvency, Liquidity & Valuation 📊

📊 Profitability Ratios

✔ Gross Profit (GP) Margin: Increased from ₹1,051.44 Cr to ₹1,482.00 Cr YoY 📈 (Strong edible oil margins 💪)
✔ EBITDA Margin: 6.39% (Q3 FY25) vs. 4.9% (Q3 FY24) 🚀
✔ PAT Margin: 4.06% (Q3 FY25) vs. 2.72% (Q3 FY24) 🔥

🏦 Solvency & Liquidity

📌 The company maintains a stable balance sheet ✅

📉 Valuation Ratios at CMP ₹1,853

Trail Earnings Per Share (EPS): ₹31.8 🏆
Trail Price-to-Earnings (Trail P/E) Ratio: ~58.3x 📈 (Premium Valuation ⚠)
Forward Earnings Per Share (FEPS): ₹37 🏆
Forward Price-to-Earnings (F_P/E) Ratio: ~50x 📈 (Premium Valuation but decreasing due to increased earnings ⚠)
Industry Comparison: Higher than traditional FMCG but in line with premium consumer brands 🤔

3️⃣ Key Business Highlights 🚀

🔥 Edible Oil Business

✔ Strong profitability: EBITDA of ₹364.24 Cr (vs. ₹107.67 Cr YoY 📈).
✔ Branded edible oils contribute 75% of total edible oil sales.
✔ Nutrela Oils growth 🚀: +41.9% YoY 🎯.

🍽️ Food & FMCG Performance

⚠ Sales Decline: Revenue down 📉 from ₹2,498.62 Cr (Q3 FY24) to ₹2,037.61 Cr (Q3 FY25) due to:

Commodity Price Pressure ⛔
Overall Weak Demand 💸
✔ Biscuits & Confectionery: ₹395.37 Cr (+1.64% YoY Growth 🍪).
✔ Honey sales doubled 📈 to ₹146.87 Cr.
✔ Ghee sales stable at ₹355.71 Cr 🧈.
✔ Nutraceuticals Revenue: ₹15.09 Cr (+6.88% YoY Growth 💊).
✔ Nutrela recognized as "Most Preferred Brand for 2024-25" 🏆.

🧼 Home & Personal Care (HPC) Integration

📌 Added ₹420.36 Cr in revenue post acquisition in Nov 2024.
📢 Marquee Products: Dant Kanti 🦷, Saundarya 💆‍♀️, Herbal Wash 🌿, Kesh Kanti 🧴.
📌 Advertising spend increased to 2.50% of revenue 📢.

🌴 Oil Palm Plantation Expansion

✔ Total area under plantation: 87,109 hectares 🌿 (46.3% mature).
✔ 6,157 hectares added in Q3 FY25 🌱.
✔ New Oil Mills in Arunachal Pradesh & Mizoram 🏭.

📢 Marketing & Branding

✔ Celebrity Endorsements 🎤:

MS Dhoni 🏏 (Mahakosh & Sunrich).
Shilpa Shetty 🧘‍♀️ (Wellness).
Shahid Kapoor 🎬 (Nutrela).
Khesari Lal Yadav 🎤 (Regional Outreach).

4️⃣ Near-Term & Long-Term Outlook 🔮

📉 Near-Term (1-2 Quarters)

⚠ Challenges:
❌ Weak FMCG Demand (Urban consumption slowdown) 💸.
❌ Commodity Price Volatility (Edible oils, wheat, sugar) 📉.
❌ Higher Marketing & Advertising Spend (May impact short-term profitability) 📢.

✅ Opportunities:
✔ Edible Oils remain a strong driver 💪.
✔ HPC integration can improve margins 💰.
✔ Increased market penetration via celebrity branding 📢.

🚀 Long-Term (1-3 Years)

📌 Growth Drivers:
✔ Transition into a full-scale FMCG giant 🏭.
✔ Oil palm plantations offer long-term cost benefits 🌱.
✔ E-commerce & modern trade expansion 📦.
✔ Export market expansion 🌍.

⚠ Risks & Challenges:
❌ Heavy dependence on Edible Oil (~75% of revenue) 🏭.
❌ Regulatory risks in FMCG (Food Safety, Ad Bans, etc.) 🚫.
❌ High Competition from FMCG giants (HUL, ITC, Dabur, Nestlé) ⚔.

🎯 Final Verdict

✅ Short-term: Strong profit growth 🔥 led by Edible Oils, but weak FMCG demand ⛔ remains a concern.
✅ Long-term: Transitioning into a pure-play FMCG player 🎯 with brand investments, HPC integration, & oil palm expansion 🌿.
✅ Valuation Check: At ₹1,853, the stock is trading at ~58x P/E. Expensive vs. peers, but high growth potential 🌟.

📢 Disclaimer & Disclosure Statement

Important Investor Advisory Notice

This research analysis is for informational purposes only and should not be considered as financial, investment, or legal advice. The information provided herein is based on publicly available financial reports, market data, and our analysis. Investors are advised to exercise caution and discretion before making any investment decisions.

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Piyush Patel

Product Designer

4.75

Profile

Class Sessions

📊 Patanjali Foods Limited Q3 FY25 Financial Analysis & Key Insights 🚀

📊 Patanjali Foods Limited Q3 FY25 Financial Analysis & Key Insights 🚀

1️⃣ Financial Highlights

📈 Sales Growth

✅ Q3 FY25 Revenue from Operations: ₹9,103.13 Cr vs. Q3 FY24: ₹7,910.70 Cr → 📈 +15.07% YoY Growth ✅ 9M FY25 Revenue: ₹24,430.38 Cr ✅ Segment-wise Performance:

🌻 Edible Oils: ₹6,717.47 Cr (+22.5% YoY Growth ✅)

🥗 Food & FMCG: ₹2,037.61 Cr (📉 Down from ₹2,498.62 Cr in Q3 FY24)

🧴 Home & Personal Care (HPC): ₹420.36 Cr (📢 Newly Integrated)

🌍 Exports: ₹67.27 Cr (Sales in 29 Countries)

💰 Profit Margins & Growth

✅ Q3 FY25 EBITDA: ₹581.24 Cr (6.39% Margin) vs. ₹390.63 Cr in Q3 FY24 (🚀 +48.79% YoY Growth) ✅ 9M FY25 EBITDA: ₹1,510.17 Cr (6.18% Margin) ✅ Q3 FY25 PAT: ₹370.93 Cr (4.06% Margin) vs. ₹216.54 Cr in Q3 FY24 (🔥 +71.30% YoY Growth) ✅ 9M FY25 PAT: ₹937.78 Cr (3.84% Margin)

2️⃣ Profitability, Solvency, Liquidity & Valuation 📊

📊 Profitability Ratios

✔ Gross Profit (GP) Margin: Increased from ₹1,051.44 Cr to ₹1,482.00 Cr YoY 📈 (Strong edible oil margins 💪) ✔ EBITDA Margin: 6.39% (Q3 FY25) vs. 4.9% (Q3 FY24) 🚀 ✔ PAT Margin: 4.06% (Q3 FY25) vs. 2.72% (Q3 FY24) 🔥

🏦 Solvency & Liquidity

📌 The company maintains a stable balance sheet ✅

📉 Valuation Ratios at CMP ₹1,853

Trail Earnings Per Share (EPS): ₹31.8 🏆

Trail Price-to-Earnings (Trail P/E) Ratio: ~58.3x 📈 (Premium Valuation ⚠)

Forward Earnings Per Share (FEPS): ₹37 🏆

Forward Price-to-Earnings (F_P/E) Ratio: ~50x 📈 (Premium Valuation but decreasing due to increased earnings ⚠)

Industry Comparison: Higher than traditional FMCG but in line with premium consumer brands 🤔

3️⃣ Key Business Highlights 🚀

🔥 Edible Oil Business

✔ Strong profitability: EBITDA of ₹364.24 Cr (vs. ₹107.67 Cr YoY 📈). ✔ Branded edible oils contribute 75% of total edible oil sales. ✔ Nutrela Oils growth 🚀: +41.9% YoY 🎯.

🍽️ Food & FMCG Performance

⚠ Sales Decline: Revenue down 📉 from ₹2,498.62 Cr (Q3 FY24) to ₹2,037.61 Cr (Q3 FY25) due to:

Commodity Price Pressure ⛔

🧼 Home & Personal Care (HPC) Integration

📌 Added ₹420.36 Cr in revenue post acquisition in Nov 2024. 📢 Marquee Products: Dant Kanti 🦷, Saundarya 💆‍♀️, Herbal Wash 🌿, Kesh Kanti 🧴. 📌 Advertising spend increased to 2.50% of revenue 📢.

🌴 Oil Palm Plantation Expansion

✔ Total area under plantation: 87,109 hectares 🌿 (46.3% mature). ✔ 6,157 hectares added in Q3 FY25 🌱. ✔ New Oil Mills in Arunachal Pradesh & Mizoram 🏭.

📢 Marketing & Branding

✔ Celebrity Endorsements 🎤:

MS Dhoni 🏏 (Mahakosh & Sunrich).

Shilpa Shetty 🧘‍♀️ (Wellness).

Shahid Kapoor 🎬 (Nutrela).

Khesari Lal Yadav 🎤 (Regional Outreach).

4️⃣ Near-Term & Long-Term Outlook 🔮

📉 Near-Term (1-2 Quarters)

⚠ Challenges: ❌ Weak FMCG Demand (Urban consumption slowdown) 💸. ❌ Commodity Price Volatility (Edible oils, wheat, sugar) 📉. ❌ Higher Marketing & Advertising Spend (May impact short-term profitability) 📢.

✅ Opportunities: ✔ Edible Oils remain a strong driver 💪. ✔ HPC integration can improve margins 💰. ✔ Increased market penetration via celebrity branding 📢.

🚀 Long-Term (1-3 Years)

📌 Growth Drivers: ✔ Transition into a full-scale FMCG giant 🏭. ✔ Oil palm plantations offer long-term cost benefits 🌱. ✔ E-commerce & modern trade expansion 📦. ✔ Export market expansion 🌍.

⚠ Risks & Challenges: ❌ Heavy dependence on Edible Oil (~75% of revenue) 🏭. ❌ Regulatory risks in FMCG (Food Safety, Ad Bans, etc.) 🚫. ❌ High Competition from FMCG giants (HUL, ITC, Dabur, Nestlé) ⚔.

🎯 Final Verdict

📢 Disclaimer & Disclosure Statement

Important Investor Advisory Notice

Piyush Patel

Class Sessions

✅ Q3 FY25 Revenue from Operations: ₹9,103.13 Cr vs. Q3 FY24: ₹7,910.70 Cr → 📈 +15.07% YoY Growth
✅ 9M FY25 Revenue: ₹24,430.38 Cr
✅ Segment-wise Performance:

✅ Q3 FY25 EBITDA: ₹581.24 Cr (6.39% Margin) vs. ₹390.63 Cr in Q3 FY24 (🚀 +48.79% YoY Growth)
✅ 9M FY25 EBITDA: ₹1,510.17 Cr (6.18% Margin)
✅ Q3 FY25 PAT: ₹370.93 Cr (4.06% Margin) vs. ₹216.54 Cr in Q3 FY24 (🔥 +71.30% YoY Growth)
✅ 9M FY25 PAT: ₹937.78 Cr (3.84% Margin)

✔ Gross Profit (GP) Margin: Increased from ₹1,051.44 Cr to ₹1,482.00 Cr YoY 📈 (Strong edible oil margins 💪)
✔ EBITDA Margin: 6.39% (Q3 FY25) vs. 4.9% (Q3 FY24) 🚀
✔ PAT Margin: 4.06% (Q3 FY25) vs. 2.72% (Q3 FY24) 🔥

✔ Strong profitability: EBITDA of ₹364.24 Cr (vs. ₹107.67 Cr YoY 📈).
✔ Branded edible oils contribute 75% of total edible oil sales.
✔ Nutrela Oils growth 🚀: +41.9% YoY 🎯.

📌 Added ₹420.36 Cr in revenue post acquisition in Nov 2024.
📢 Marquee Products: Dant Kanti 🦷, Saundarya 💆‍♀️, Herbal Wash 🌿, Kesh Kanti 🧴.
📌 Advertising spend increased to 2.50% of revenue 📢.

✔ Total area under plantation: 87,109 hectares 🌿 (46.3% mature).
✔ 6,157 hectares added in Q3 FY25 🌱.
✔ New Oil Mills in Arunachal Pradesh & Mizoram 🏭.

⚠ Challenges:
❌ Weak FMCG Demand (Urban consumption slowdown) 💸.
❌ Commodity Price Volatility (Edible oils, wheat, sugar) 📉.
❌ Higher Marketing & Advertising Spend (May impact short-term profitability) 📢.

✅ Opportunities:
✔ Edible Oils remain a strong driver 💪.
✔ HPC integration can improve margins 💰.
✔ Increased market penetration via celebrity branding 📢.

📌 Growth Drivers:
✔ Transition into a full-scale FMCG giant 🏭.
✔ Oil palm plantations offer long-term cost benefits 🌱.
✔ E-commerce & modern trade expansion 📦.
✔ Export market expansion 🌍.

⚠ Risks & Challenges:
❌ Heavy dependence on Edible Oil (~75% of revenue) 🏭.
❌ Regulatory risks in FMCG (Food Safety, Ad Bans, etc.) 🚫.
❌ High Competition from FMCG giants (HUL, ITC, Dabur, Nestlé) ⚔.