Patanjali Foods Ltd – From Ruchi Soya Bankruptcy to Baba’s FMCG Empire, Now Trading at P/E 54
1. At a Glance
Patanjali Foods (formerly Ruchi Soya) is the FMCG reincarnation story of Dalal Street. Once bankrupt, rescued by Baba Ramdev’s Patanjali group, and now a ₹65,000 Cr market cap edible oil-to-FMCG giant. FY25 sales were ₹35,866 Cr with PAT of ₹1,219 Cr. The problem? P/E at 53.6 and promoter pledging at 37.8%—investors are basically betting on Baba’s yoga stretches to also stretch margins.
2. Introduction
Let’s rewind. Ruchi Soya was the fallen angel of edible oils. In 2019, Patanjali swooped in via NCLT, slapped its brand power, and voila—rebirth as Patanjali Foods. Since then, it’s been on an FMCG expansion spree.
The edible oil business still dominates (72% revenue in H1 FY25), but Patanjali has been diversifying into atta, biscuits, nutraceuticals, Nutrela proteins, and more. Essentially, they want to be India’s Nestlé with a saffron twist.
But markets aren’t just buying yoga mats here. PAT fell 31% in Q1 FY26 despite 24% sales growth. Debt reduced sharply (₹3,696 Cr in FY22 → ₹788 Cr now), but pledging at 38% remains a major sore spot. Investors wonder: is this India’s next FMCG superbrand or just another commodity refiner with an identity crisis?
3. Business Model – WTF Do They Even Do?
Segments:
Edible Oils (72%) – Palm, soya, sunflower under brands Patanjali, Nutrela, Mahakosh, Sunrich. Oil palm plantations cover 80,952 hectares, with plans to scale to 6.5 lakh hectares. Oleochemicals made from castor, soya, and palm. Basically, if it’s oily, they sell it.
Food & FMCG (28%) – 242 products, 500+ SKUs, everything from atta, ghee, biscuits, honey, tea, sauces, and Nutrela protein powders. Recently launched Nutrela Plant Protein and Creatine Monohydrate. FMCG revenue fell 4% YoY in H1 FY25—proof that not everyone wants yoga-branded creatine.
Distribution – 8,000+ distributors, 84 super-distributors, 3,420 Arogya Kendras. A retail reach that rivals even Big Bazaar in its heyday.
Exports – Footprint across 34 countries, but only 1% of revenue. Basically, the “international story” is still a marketing line, not a P&L driver.
M&A – Acquired Patanjali’s home & personal care biz for ₹1,100 Cr in Nov 2024. So now your Patanjali shampoo and soap also sit under the listed entity.
4. Financials Overview
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue (₹ Cr)
8,900
7,177
9,692
24.0%
-8.2%
EBITDA (₹ Cr)
321
410
516
-21.7%
-37.8%
PAT (₹ Cr)
180
263
359
-31.6%
-49.9%
EPS (₹)
4.98
7.26
9.90
-31.4%
-49.7%
Commentary: Sales are up, profits are down. OPM shrank to 4%. Looks like the oil squeeze is happening at their own margins.
