Are Patanjali Foods latest results good or bad?

Patanjali Foods has reported its financial results for the quarter ending March 2025, highlighting a strong performance in the edible oil sector. The company achieved net sales of Rs 9,692.21 crore, which is the highest quarterly sales recorded in the last five quarters, indicating robust demand for its products.
In terms of profitability, Patanjali Foods recorded a profit before tax (PBT) of Rs 405.96 crore, reflecting a growth of 20.3% compared to the average PBT of Rs 337.47 crore over the previous four quarters. The profit after tax (PAT) stood at Rs 358.54 crore, representing a notable increase of 24.8% from the average PAT of Rs 287.28 crore in the same timeframe.

However, when examining the quarter-on-quarter performance, there are some contrasting trends. The net sales growth for the quarter ended March 2025 was 6.27%, which is lower than the 11.85% growth seen in December 2024. Additionally, the standalone net profit experienced a decline of 3.34% compared to the previous quarter's growth of 20.05%. The operating profit margin, excluding other income, also saw a decrease, indicating some challenges in maintaining profitability levels.

Furthermore, it is noted that the company saw an adjustment in its evaluation over the last three months. Despite this, the near-term trends for both sales and profitability remain positive, suggesting that the underlying operational performance has strengths worth considering.