How has been the historical performance of Patanjali Foods?

Nov 28 2025 10:40 PM IST

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Patanjali Foods has shown significant growth from March 2019 to March 2025, with net sales increasing from 12,729.23 Cr to 33,791.91 Cr, and a turnaround in profitability, achieving a profit after tax of 1,300.71 Cr compared to a loss in 2019. The company also improved its total assets and reduced liabilities during this period.

Revenue and Profitability Trends

Net sales for Patanjali Foods have shown a mixed trajectory. The company recorded ₹28,381 crore in sales in March 2014, which rose to a peak of ₹31,204 crore in March 2015. However, sales dipped to ₹12,027 crore by March 2018 before rebounding sharply to ₹33,792 crore in March 2025. This rebound reflects a strong recovery and expansion in the company’s core operations.

Operating profit margins have mirrored this volatility. The firm posted modest positive margins in 2014 and 2015, but suffered steep operating losses between 2016 and 2018, with margins plunging to negative 42.5% in 2018. By March 2025, operating margins improved significantly to 5.76%, signalling a return to operational efficiency and profitability.

Profit after tax (PAT) followed a similar pattern. After marginal profits in 2014 and 2015, the company endured consecutive years of losses, with a substantial net loss exceeding ₹5,700 crore in 2018. The turnaround culminated in a PAT of ₹1,301 crore in March 2025, representing a positive margin of 3.85%. Earnings per share also reflected this recovery, moving from deeply negative figures in 2018 to a positive ₹11.97 in 2025.

Cost Structure and Expenditure

The company’s cost of raw materials and purchases of finished goods have been substantial components of total expenditure. Raw material costs increased from around ₹13,145 crore in 2014 to over ₹21,000 crore in 2025, while purchases of finished goods fluctuated widely, peaking at over ₹15,500 crore in 2015 before settling at ₹8,935 crore in 2025. Other expenses also rose notably, reaching ₹2,452 crore in 2025 from negligible levels in earlier years.

Employee costs have remained relatively stable, increasing modestly from ₹201 crore in 2014 to ₹553 crore in 2025. Manufacturing expenses showed a declining trend, with a notable reduction from over ₹2,000 crore in 2014 to near zero in recent years, reflecting possible operational efficiencies or changes in accounting.

Balance Sheet and Financial Position

Patanjali Foods’ balance sheet reveals significant shifts in shareholder funds and liabilities. Shareholder’s funds were negative in 2018 and 2019, reflecting accumulated losses, but surged to ₹11,371 crore by March 2025, indicating a strong capital base restoration. Total liabilities decreased from ₹17,248 crore in 2016 to ₹15,420 crore in 2025, with a marked reduction in total debt from over ₹8,200 crore in 2019 to ₹781 crore in 2025, signalling improved leverage and financial health.

Assets have also evolved, with total assets standing at ₹15,420 crore in 2025, down from a peak of ₹17,248 crore in 2016. Net block of fixed assets increased steadily, reaching ₹5,553 crore in 2025, suggesting ongoing investment in property, plant, and equipment. Current assets rose significantly to ₹9,399 crore in 2025 from ₹2,546 crore in 2019, improving liquidity and working capital position.

Cash Flow and Liquidity

Cash flow from operating activities has been inconsistent, with negative cash flows in earlier years turning positive in recent periods. In 2025, operating cash flow was ₹197 crore, a recovery from negative ₹411 crore in 2016. Investing activities have generally involved outflows, consistent with capital expenditure, while financing activities showed a net outflow of ₹611 crore in 2025, reflecting debt repayments or dividend payments. The company’s closing cash and cash equivalents stood at ₹109 crore in 2025, down from ₹537 crore at the start of the year, indicating moderate liquidity.

Summary and Outlook

Overall, Patanjali Foods has demonstrated a remarkable turnaround from a period of steep losses and financial strain to a position of renewed profitability and strengthened balance sheet. The company’s ability to grow net sales substantially while improving operating and net profit margins highlights effective management and operational improvements. The reduction in debt and enhancement of shareholder funds further underpin its financial stability.

Investors should note the company’s past volatility but also recognise the recent positive momentum in earnings and cash flow. Continued focus on cost control, efficient capital allocation, and market expansion will be critical for sustaining this upward trajectory in the competitive food industry landscape.

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