Patanjali Foods Reports Robust Growth in Q4 FY25 with Significant Marketing Investments

Patanjali Foods, the Haridwar-based FMCG giant owned by yoga guru Baba Ramdev, has reported a strong financial performance in the fourth quarter of fiscal year 2025, driven by a significant increase in marketing and promotional activities. The company, known for its wide range of products including edible oil, biscuits, and snacks, has seen its standalone profit surge by 74%, alongside a two-fold increase in marketing expenditures.

During the quarter ending on March 31, 2025, Patanjali Foods’ profit reached Rs 358.5 crore. This marks a notable rise from the Rs 206 crore profit recorded in the same quarter of the previous fiscal year, Q4 FY24. Over the course of the entire fiscal year 2025, the company’s profit soared to Rs 1,301 crore, compared to Rs 765 crore in FY24.

Rural Demand Outpaces Urban Markets

A key factor contributing to the company’s success is the robust demand from rural markets, which has outpaced urban demand for the fifth consecutive quarter. In Q4 FY25, rural consumer demand grew four times faster than that of urban India, providing a substantial boost to the company’s sales.

Marketing and Promotional Spend

Patanjali Foods has been aggressive in its marketing strategies, with advertising and promotional spending in Q4 FY25 amounting to Rs 325.66 crore. This figure represents 3.36% of the company’s revenue from operations for the quarter. In a stock exchange filing, Patanjali Foods highlighted its commitment to maintaining its momentum in advertisement and sales promotion activities.

Revenue Growth

For Q4 FY25, the company’s revenue from operations was reported at Rs 9,692 crore, a significant increase from Rs 8,227.6 crore in the corresponding quarter of the previous fiscal year. Overall, for the full fiscal year, revenue from operations increased by 7.6%, reaching Rs 34,157 crore.

The total income for the company in Q4 FY25 stood at Rs 9,744 crore, contributing to a full fiscal 2025 total of Rs 34,289 crore.

Edible Oil Leads Revenue Segments

Patanjali Foods’ edible oil segment continues to be a major revenue driver. In Q4 FY25, revenues from edible oils reached Rs 6,764 crore, marking a 21% year-on-year increase from Rs 5,594 crore in Q4 FY24. The segment’s EBITDA crossed the Rs 1,000 crore threshold in FY25, with branded edible oil sales constituting over 75% of total sales.

Performance in Other Segments

The biscuits and confectionery division recorded revenues of Rs 426.25 crore in Q4 FY25 and Rs 1,677.38 crore for the entire fiscal year. The FMCG segment, which includes Home and Personal Care products, accounted for 30.61% of revenue in Q4 FY25. Export revenues for the quarter amounted to Rs 73.44 crore.

In terms of specific product categories, Dental Care generated Rs 398.14 crore in Q4 FY25, Skin Care Rs 178.49 crore, and Home Care Rs 88 crore. Additional revenues were derived from Hair Care and other product offerings.

Legal and Fiscal Developments

In a recent legal development, the Supreme Court dismissed a Rs 186 crore tax demand against Patanjali Foods, providing relief to the company.

Future Outlook

Looking forward to FY26, Patanjali Foods is optimistic about a gradual recovery in overall demand. The company anticipates that supportive government policies and expectations of better agricultural output, bolstered by a favorable monsoon, will lead to increased consumer spending. The second half of FY26 is projected to be particularly strong in terms of demand.

Note: This article is inspired by content from https://www.storyboard18.com/advertising/baba-ramdevs-patanjali-foods-spends-rs-325-crore-on-marketing-promotional-activities-in-q4-fy25-66115.htm. It has been rephrased for originality. Images are credited to the original source.