Patanjali Foods' boosts ad spend to Rs. 130 Crore in Q2 FY25

Patanjali Foods has significantly increased its advertising and sales promotion spending, crossing Rs 130 crore in the second quarter of the fiscal year 2025 to strengthen its brand visibility and market presence. This bold push in promotions comes as the FMCG giant collaborates with well-known celebrities, including Shilpa Shetty, Shahid Kapoor, and Khesari Lal Yadav, to endorse its popular Nutrela-branded soya chunks and edible oils. In total, the company has already allocated over Rs 185 crore to advertising so far this fiscal year, underscoring its commitment to boosting product appeal and market traction.

In Q2 FY25, Patanjali Foods reported a standalone profit of Rs 308.97 crore, marking a robust 21.38% year-over-year (YoY) growth. EBITDA also showed a solid performance, increasing by 17.81% YoY to reach Rs 493.86 crore in the second quarter, reflecting efficient cost management and increased profitability.

The company achieved total sales of Rs 2,303.66 crore within its Food and FMCG segment in the September quarter, despite a marginal dip attributed to sluggish industry demand. This segment alone accounted for 27.90% of Patanjali’s Revenue from Operations, a critical component of the brand's overall financial health. The revenue from operations rose by 4.25% YoY to Rs 8,154 crore in Q2, indicating steady growth and resilience amid a challenging market.

Additionally, Patanjali Foods made headlines with its Rs 1,100 crore acquisition of Patanjali Ayurved's home and personal care business, a move approved by the Competition Commission of India (CCI). This acquisition is expected to boost Patanjali's market reach within the competitive FMCG sector by diversifying its offerings and enhancing brand value across home and personal care products.

Within specific categories, staples (including rice, pulses, and wheat products) achieved sales of Rs 1,032.43 crore compared to Rs 945.01 crore in Q1FY25. Traditional products like Cow Ghee, Chyawanprash, and Honey saw notable success, generating Rs 621.48 crore in revenue, a significant increase from Rs 405.92 crore in the first quarter. Meanwhile, the biscuits division continued to thrive with a 5.20% quarter-on-quarter (QoQ) growth, producing Rs 438.73 crore in revenue, while the popular Doodh biscuit brand showed a slight revenue boost to Rs 297.93 crore in Q2 FY25.

The nutraceuticals segment demonstrated a breakthrough performance, turning profitable for the first half of FY25 with an impressive 57.32% YoY growth in revenue, reaching Rs 22.86 crore. This growth aligns with Patanjali’s strategic focus on expanding high-growth categories.

Patanjali’s edible oil division, a core business area, recorded Rs 5,939.21 crore in sales for Q2 FY25, up from Rs 5,421.45 crore during the same quarter last year. Notably, branded edible oil sales accounted for nearly 74.83% of total edible oil sales, highlighting the strength of Patanjali’s brand-driven approach in this segment.

Additionally, Patanjali Foods recently invested Rs 25 crore in its wholly-owned subsidiary, Contemporary Agro, which focuses on innovative agricultural practices.