Patanjali Foods April-June Profit Plunges 31% on Higher Input Costs

Patanjali Foods Ltd. posted a 31% year-on-year drop in net profit for April–June as raw material costs surged and other expenses climbed sharply.

Net profit stood at ₹1.80 billion, down 50% from the March quarter. Revenue from operations rose 24% on year to ₹89.00 billion but slipped 8% sequentially. Total income was ₹89.13 billion.

Total expenses jumped 27% on year to ₹86.64 billion, led by a 43% surge in cost of materials to ₹61.39 billion. Finance costs were up 25% to ₹238 million, while employee expenses rose 27% to ₹1.48 billion. Purchase of stock-in-trade fell 33% to ₹13.69 billion, but other expenses surged 67% to ₹7.77 billion.

EBITDA came in at ₹3.34 billion, down 23% on year, with margins slipping to 3.8% from 6.1% in the year-ago period.

In the edible oil segment, revenue rose 25% to ₹66.86 billion. Food and other FMCG sales dropped 15% to ₹16.61 billion. The home and personal care segment brought in ₹6.39 billion, including ₹3.32 billion from dental care, ₹1.57 billion from skincare, and ₹916 million from home care.

The company noted urban consumers were shifting towards lower-priced or smaller packs, with regional brands gaining preference.