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HomeStartup StoriesSuccess StoriesPatanjali Foods Boosts Ad Spend to Strengthen Market Position in Q2 FY25,...

Patanjali Foods Boosts Ad Spend to Strengthen Market Position in Q2 FY25, Reports 21.38% Net Profit Growth

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Patanjali Foods has significantly increased its advertising budget, spending over Rs 130 crore in the second quarter of FY25. In a strategic move to bolster its market presence, the company enlisted celebrities such as Shilpa Shetty, Shahid Kapoor, and Khesari Lal Yadav to promote its Nutrela-branded soya chunks and edible oils. So far in FY25, Patanjali Foods has invested more than Rs 185 crore in advertising and promotional activities.

The FMCG giant reported a standalone profit of Rs 308.97 crore, marking a 21.38% year-over-year (YoY) increase. Additionally, EBITDA for Q2 FY25 rose by 17.81% YoY to reach Rs 493.86 crore.

In a recent stock exchange update, Patanjali Foods disclosed that its food and FMCG segment recorded sales of Rs 2,303.66 crore for the quarter, contributing 27.90% to the total revenue from operations, which grew by 4.25% YoY to Rs 8,154 crore. Although the FMCG segment saw a slight decline, this trend reflects broader industry-wide demand challenges.

Patanjali Foods also expanded its reach by investing Rs 25 crore in its wholly-owned subsidiary, Contemporary Agro, supporting its staple product range. Staple categories such as rice, pulses, and wheat products garnered sales of Rs 1,032.43 crore, compared to Rs 945.01 crore in Q1 FY25. Key product lines including Cow Ghee, Chyawanprash, and Honey generated revenue of Rs 621.48 crore, an increase from Rs 405.92 crore in Q1. Meanwhile, its biscuit division grew by 5.20% quarter-on-quarter, posting Rs 438.73 crore in sales, with the popular ‘Doodh’ biscuit brand contributing Rs 297.93 crore.

Led by Baba Ramdev, Patanjali Foods’ nutraceuticals division turned profitable in the first half of FY25, with revenue up 57.32% YoY to Rs 22.86 crore between July and September. The edible oil segment achieved sales of Rs 5,939.21 crore, a rise from Rs 5,421.45 crore in Q2 of the previous year. Branded edible oils made up about 74.83% of the total segment revenue, demonstrating the brand’s continued dominance in the sector.

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