Patanjali Foods Limited (PATANJALI) AI Stock Analysis

• Market Cap: ₹626.76B
• Dividend Yield: 0.76%
• Average Volume (3M): 121.69K
• Price to Earnings (P/E): 43.9
• Beta (1Y): 0.67
• Revenue Growth: 19.18%
• EPS Growth: 43.36%
• Country: IN
• Employees: 5,562
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 4.13
• Shares Outstanding: 1,087,828,200
• 10 Day Avg. Volume: 56,734
• 30 Day Avg. Volume: 121,694
• PEG Ratio: 0.72
• Price to Book (P/B): 5.73
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 1.24K
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹657.00 ▲(13.10% Upside)

Patanjali Foods Limited shows strong financial performance with robust revenue growth and effective cost management. However, the stock's high valuation and declining cash flow from operations present challenges. Technical indicators suggest neutral momentum, neither strongly bullish nor bearish. Improving cash generation and addressing valuation concerns will be key to enhancing the stock's attractiveness.

Patanjali Foods Limited Business Overview & Revenue Model

Company Description

Patanjali Foods Limited engages in processing oil seeds and refining crude oil for edible use in India. The company operates through Seed Extractions, Vanaspati, Oils, Food Products, Wind Power Generation, and Others segments. It provides various types of seed extractions; Vanaspati, bakery fats, and table spreads; crude and refined oils; and textured soya protein and soya flour; seeds, soaps, fresh fruit bunches, toiletry preparations, and castor seeds; and wheat flour and honey, coffee, and seedling products, as well as oil meals and other value-added products, such as oleochemicals and soya products. The company offers its products under the Nutrela, Mahakosh, Sunrich, Ruchi Star, and Ruchi Gold brands. The company also generates electricity from windmills. It also exports oilseed meals/de-oiled cakes to 38 countries. The company was formerly known as Ruchi Soya Industries Limited and changed its name to Patanjali Foods Limited in June 2022. Patanjali Foods Limited was incorporated in 1986 and is headquartered in Indore, India.

How the Company Makes Money

Patanjali Foods Limited generates revenue through multiple streams, primarily by selling a diverse portfolio of products in the FMCG sector. The company produces and markets food products, including edible oils, cereals, and health supplements, leveraging its strong brand recognition and distribution network. Key revenue streams include direct sales through retail outlets, e-commerce platforms, and partnerships with various distributors and wholesalers. Additionally, Patanjali's emphasis on promoting natural and Ayurvedic products has resonated with consumers seeking healthier options, contributing to increasing demand and sales. Strategic partnerships with local farmers for raw material sourcing and collaborations with various retail chains have further bolstered its market presence and profitability.

Patanjali Foods Limited Financial Statement Overview

Summary

Patanjali Foods Limited demonstrates strong revenue growth and improved gross profit margins, indicating efficient cost management. The balance sheet is healthy with a strong equity base and declining leverage. However, cash flow from operations has declined, impacting financial flexibility. Improving cash generation and net profit margins will be crucial for sustained financial health.

Income Statement

Patanjali Foods Limited has demonstrated strong revenue growth, with a notable increase from 2024 to 2025. Gross profit margin has improved significantly, reflecting efficient cost management. The EBIT and EBITDA margins show robust operational performance. However, the net profit margin, while increasing, still leaves room for improvement.

Balance Sheet

The company maintains a healthy balance sheet characterized by a strong equity base and declining leverage, as evidenced by the decreasing debt-to-equity ratio. The equity ratio reflects strong capital structure management. However, the return on equity, while positive, indicates potential for higher returns on shareholders' investments.

Cash Flow

Cash flow from operations has declined, impacting free cash flow. The free cash flow to net income ratio is low, suggesting limited cash generation relative to earnings. However, the company has reduced capital expenditures, which is favorable for future cash preservation. Improving operating cash flow would strengthen financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	358.49B	341.57B	317.24B	315.30B	239.18B	163.33B
Gross Profit	53.53B	53.16B	38.77B	23.99B	21.09B	15.67B
EBITDA	19.07B	19.46B	13.82B	13.83B	15.39B	9.98B
Net Income	12.18B	13.01B	7.65B	8.86B	8.06B	6.81B
Balance Sheet
Total Assets	0.00	155.17B	132.62B	132.44B	114.80B	90.09B
Cash, Cash Equivalents and Short-Term Investments	4.34B	4.34B	16.61B	8.21B	3.88B	580.32M
Total Debt	0.00	7.88B	10.49B	14.54B	36.96B	36.60B
Total Liabilities	-113.71B	41.46B	30.57B	33.97B	53.09B	49.46B
Stockholders Equity	113.71B	113.71B	102.05B	98.47B	61.71B	40.62B
Cash Flow
Free Cash Flow	0.00	527.96M	16.46B	-4.38B	6.84B	2.20B
Operating Cash Flow	0.00	1.97B	17.46B	-3.39B	7.24B	2.41B
Investing Cash Flow	0.00	-141.00M	-9.12B	5.26B	-15.62B	-415.65M
Financing Cash Flow	0.00	-6.11B	-11.00B	2.41B	11.67B	-3.07B

Patanjali Foods Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 580.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PATANJALI, the sentiment is Negative. The current price of 580.9 is below the 20-day moving average (MA) of 586.25, below the 50-day MA of 590.36, and below the 200-day MA of 592.67, indicating a bearish trend. The MACD of -1.75 indicates Negative momentum. The RSI at 44.56 is Neutral, neither overbought nor oversold. The STOCH value of 47.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PATANJALI.

Patanjali Foods Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AWL	73 Outperform	₹360.40B	33.24	―	―	27.53%	10.43%
TATACONSUM	71 Outperform	₹1.17T	85.65	―	0.70%	15.34%	14.67%
MARICO	69 Neutral	₹931.20B	55.66	―	1.42%	22.56%	4.73%
PATANJALI	67 Neutral	₹626.76B	43.90	―	0.76%	19.18%	43.36%
DABUR	66 Neutral	₹917.00B	50.67	―	1.55%	2.68%	1.07%
EMAMILTD	64 Neutral	₹236.01B	28.68	―	1.93%	0.84%	-2.44%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%