Baba Ramdev-led Patanjali Ayurved has reported a remarkable financial performance for FY24, with a 23.15% rise in total income to Rs 9,335.32 crore, driven by substantial growth in other income. However, its core revenue from operations dropped due to the transfer of its food business to Patanjali Foods. The company’s total profit surged five-fold to Rs 2,901.10 crore, underscoring a transformative year marked by strategic restructuring and strong financial gains. Below, we break down the company's financial metrics, operational shifts, and strategic highlights.

Significant Growth in Total Income Driven by Other Income

Patanjali Ayurved's total income in FY24 rose by 23.15%, reaching Rs 9,335.32 crore, compared to Rs 7,580.06 crore in FY23.

The growth was largely attributed to a substantial rise in other income, which climbed to Rs 2,875.29 crore, up from Rs 46.18 crore in FY23.
This increase included earnings from offer-for-sale (OFS) activities in Patanjali Foods and contributions from other group entities.
Actionable Insight: The rise in other income indicates the company’s strategic reliance on ancillary earnings beyond its core operations, reflecting a diversified revenue approach.

Core Revenue Declines Amid Business Restructuring

The company’s revenue from operations dropped by 14.25%, falling to Rs 6,460.03 crore from Rs 7,533.88 crore in FY23.

This decline was a direct result of transferring its food business, including biscuits, ghee, cereals, and nutraceuticals, to Patanjali Foods on July 1, 2022.
Despite this drop, the restructuring positions Patanjali Foods as a key entity in the group’s strategy, consolidating its FMCG food portfolio under a single banner.
Strategic Takeaway: The revenue dip is temporary and aligned with Patanjali’s broader goals of operational consolidation and streamlined business verticals.

Profits Surge as Efficiency Improves

Patanjali Ayurved reported a five-fold increase in total profit, reaching Rs 2,901.10 crore in FY24, compared to Rs 578.44 crore in FY23.

This exceptional profit growth underscores operational efficiencies and significant contributions from non-core income streams.
The restructuring efforts and financial prudence have amplified profit margins, making FY24 a transformative year for the company.
Investor Note: The sharp rise in profitability strengthens Patanjali’s financial position, paving the way for further expansions and investments.

Increased Advertising and Promotional Spend

Advertising and promotional expenses grew by 9.28% to Rs 422.33 crore in FY24.

The rise reflects the company’s focus on bolstering brand visibility and expanding its market footprint, especially in the highly competitive FMCG and ayurvedic product sectors.
The increased spending aligns with Patanjali’s long-term strategy to maintain its position as a household name in India.
Marketing Insight: Enhanced advertising investments signal confidence in product innovation and market share growth.

Business Realignment: Transfer of Home and Personal Care Division

In July 2023, Patanjali Ayurved transferred its home and personal care business to Patanjali Foods for a consideration of Rs 1,100 crore.

This move aligns with the company’s strategy to centralize non-ayurvedic operations under Patanjali Foods, enhancing focus and resource allocation across business units.
The transfer positions Patanjali Foods as a consolidated powerhouse in edible oils, home care, and personal care segments.
Strategic Impact: The realignment reflects Patanjali’s intent to streamline operations and optimize resource utilization for sustained growth.

OFS Initiative: Patanjali Foods Meets Compliance Goals

In July 2023, promoters of Patanjali Foods launched a two-day offer-for-sale (OFS) to pare down their stake by 7% and meet minimum public shareholding requirements.

The OFS was oversubscribed more than two times, highlighting strong investor confidence.
This also contributed significantly to Patanjali Ayurved’s other income, demonstrating its ability to leverage financial instruments for value creation.
Investor Takeaway: The success of the OFS showcases Patanjali Foods’ market credibility and positions it favorably in the stock market.

Patanjali Foods: A Strong Contributor to Group Performance

Patanjali Foods, a leading edible oil maker and key group entity, achieved a total revenue of Rs 31,961.62 crore in FY24, marginally up from Rs 31,821.45 crore in FY23.

The company, acquired through an insolvency resolution process, has become a cornerstone of Patanjali’s diversification strategy.
Its robust performance highlights the synergy between Patanjali Ayurved and its subsidiaries.
Growth Perspective: Patanjali Foods’ steady revenue growth reflects its dominance in the edible oil segment and its expanding footprint in other FMCG categories.

Patanjali Ayurved’s Core Operations and Market Presence

Patanjali Ayurved remains a leader in the ayurvedic product and FMCG market, focusing on categories like:

Hair care, skin care, dental care, home care, and personal care.
Dairy products and bulk trading of food products.
The company operates through a vast distribution network, including independent distributors, exclusive stores, and marketing federations.

Its manufacturing capabilities span multiple locations, with significant facilities in Dehradun and Manesar. The widespread reach ensures consistent supply and customer accessibility.