Patanjali Foods Ltd Management Discussions

We have redefined our identity in Indias consumer landscape, evolving from a commodity-driven business into a modern, purpose-led enterprise. Today, we hold leadership positions in edible oils and soya foods, while steadily expanding our presence across high-growth segments such as FMCG, Home and Personal Care, and renewable energy. A landmark in this journey was the 1,100 crore acquisition of the Home and Personal Care (HPC) business from Patanjali Ayurved Limited during the year. This strategic addition brings with it iconic brands, advanced manufacturing, an extensive distribution network, and proven expertise-further elevating our scale and positioning us for sustained growth in both revenue and profitability.

Our Food and FMCG portfolio have also been strengthened through prior acquisitions in Biscuits & Confectionery and Foods, as well as the launch of an innovative Nutraceuticals range. With the HPC acquisition in November 2024, the FMCG segment now contributes more than 28% of our total revenue. Anchored in four key consumer categories, we are committed to driving marketing excellence, unlocking operational synergies, and leveraging our infrastructure to capture the opportunities of Indias consumption-led growth story. Guided by our purpose and ambition, we are building an enterprise that not only creates value for shareholders but also shapes healthier and more sustainable choices for consumers.

Macroeconomic Landscape

Global Economy

The global economy demonstrated resilience over the past year, stabilising from the disruptions experienced earlier in the decade, despite the persistent influence of geopolitical tensions. According to International Monetary Fund (IMF) estimates, world GDP growth moderated to 3.3% in 2024 from 3.5% in 2023, largely due to a slowdown in Emerging Markets and Developing Economies (EMDEs). The US economy remained buoyant, recording 2.8% growth supported by strong domestic demand and a robust labour market. In contrast, growth was muted in the Euro area and Japan. China achieved its 5% growth target, aided by policy support, despite ongoing challenges in the property sector. A notable positive development was the gradual easing of inflation in advanced economies, creating room for monetary policy relaxation after a period of aggressive tightening. As per the IMF, average inflation in advanced economies declined from 4.6% in 2023 to 2.6% in 2024, supported by the continued normalisation of supply chains following the Russia-Ukraine conflict.

Outlook

The outlook for 2025 has been shaped by escalating trade tensions, triggered by the tariff policies introduced by the new US administration. While the initial tariffs announced in early April have since been partially diluted through subsequent statements and bilateral negotiations, some measures such as a 90-day pause remain conditional on further discussions. Nonetheless, US tariffs are expected to remain elevated compared to levels seen at the start of the year, contributing to heightened policy uncertainty and dampening both business and consumer confidence.

The final tariff landscape may take time to stabilise. As a result, the sectoral and regional impact of these measures is likely to be complex, with varying tariffs across countries potentially leading to trade diversion and second- or third- order effects. Beyond trade, geopolitical risks persist, particularly the ongoing conflicts in Ukraine and the Middle East. Amid such uncertainty, the IMF projects global GDP growth to decelerate to 2.8% in 2025 and 3.0% in 2026 below

trend but above recessionary thresholds. It is worth noting that these projections were made prior to the latest US tariff adjustments and may be revised as the trade environment becomes clearer.

According to the IMF, the effects of trade policy are expected to be broadly negative worldwide, with the most pronounced impacts on the US and China key players in the tariff disputes. Higher tariffs could also fuel inflationary pressures in the US, complicating the Federal Reserves (Fed) monetary policy outlook. The Fed has adopted a cautious, data-dependent approach, indicating that interest rate changes will hinge on further clarity regarding inflation trends and labour market dynamics.

and the RBIs recent rate reductions. The Indian Meteorological Department has forecast above-normal monsoon rainfall, aiding rural recovery, while rising consumer confidence and liquidity support from the RBI are expected to further strengthen demand. Lower international oil prices, ongoing fiscal consolidation, and robust foreign exchange reserves are also likely to reinforce macroeconomic stability. The RBI projects consumer inflation to ease to 4% in FY 2025-26. While a softening in external demand may pose modest challenges, the IMF expects India to grow at 6.2%, based on earlier US tariff announcements. However, the RBI maintains a more optimistic forecast of 6.5%, reflecting the strength of domestic growth drivers in sustaining economic momentum.

Indian Economy

India remains one ofthe worlds fastest-growing major economies, with the economy estimated to have grown by a robust 6.5% in FY 2024-25, following a strong 9.2% expansion in the previous year. While private consumption gathered pace, gross fixed capital formation saw a slowdown. Growth was muted in the first half, impacted by election-related restrictions on public capital expenditure, elevated food inflation, and heatwaves dampening demand. However, momentum picked up in the second half. Retail inflation moderated from 5.4% in FY 2023-24 to 4.6% in FY 2024-25, dipping below 4% in the final quarter as food inflation eased significantly. This created room for monetary easing, prompting the Reserve Bank of India (RBI) to cut policy rates by a cumulative 50 basis points in its February and April 2025 meetings. Liquidity conditions, which had tightened earlier in the year, improved following targeted RBI interventions. Indias macroeconomic fundamentals remain resilient, supported by ongoing fiscal consolidation, stable foreign exchange reserves, and a manageable current account deficit.

Outlook

Indias growth outlook for FY 2025-26 appears optimistic, driven by resilient domestic fundamentals despite lingering global headwinds. Consumption is set to gain momentum, supported by H 1 trillion in personal income tax cuts announced in the Union Budget, easing food inflation, favourable monsoon prospects,

Industry Overview FMCG

Indias Fast-Moving Consumer Goods (FMCG) sector is the 4^th largest in the country has witnessed robust growth, driven by rising consumer demand and higher product prices, particularly in essentials. In 2022, urban India contributed 65% to total FMCG sales, while rural areas accounted for over 35%, with rural demand expected to rebound on the back of favourable harvests and government spending. The sector grew 6.4% by volume in Q3 FY 2023-24 and registered 8.5% revenue growth in FY 2022-23. Inflation-led price hikes in 2022 drove value growth to 8.4% in H1, peaking at 10.9% in Q2. With 780 million internet users spending 7.3 hours daily on smartphones, digital engagement is soaring. Resilience across supply chains, manufacturing, and retail is essential for long-term value creation. Rural FMCG basket sizes grew nearly 60% between 2022 and 2024.

Outlook

Indias FMCG sector contributes around 3% to GDP and provides employment to nearly 3 million people. According to CRISIL, the sector is expected to grow by 7-9% in revenue in FY 2024-25, reaching approximately H 11 lakh crore. This growth is underpinned by rising disposable incomes, deeper rural penetration, and rapid e-commerce expansion. The Union Budget 2025-26 further fuels this momentum by boosting rural development, enhancing MSME support, and increasing disposable income, creating powerful tailwinds for industry growth. Building on the 2023-24 Budgets emphasis on rural demand through farm allocations, infrastructure investment, and better connectivity, the latest measures aim to stimulate long-term job creation and consumption across rural and semi-urban areas. For FMCG companies, this translates into opportunities to invest in direct-to-consumer (DTC) models, strengthen digital presence, and scale distribution in tier-2 and tier-3 cities. The sector continues to evolve, shaped by technology, shifting preferences, and the rise of digital commerce.

Growth Drivers

Favourable government policies

The Union Budget 2025-26 offers a significant stimulus to consumer spending, providing a favourable landscape for the growth of the FMCG sector. By increasing disposable incomes and prioritising rural development and MSME support, the budget creates strong tailwinds for industry expansion. Building on the momentum of the 2023-24 Budget which focused on reviving rural demand through enhanced farm allocations, infrastructure investment and improved connectivity, the latest budget continues to pave the way for long-term employment generation and sustained consumption across rural and semi-urban India.

Rise of premium products

Premium brands continue to outpace their nonpremium counterparts, growing nearly twice as fast and marking a significant shift in consumer behaviour. According to NielsenIQ, premium+ segments contribute around 27% of total FMCG sales and drive 42% of the sectors value growth, reflecting a strong move towards quality and aspirational purchases by digitally connected consumers.

Income-led consumption surge

A Morgan Stanley report states that households earning over $35,000 annually in India are expected to increase fivefold over the next decade, fuelling a boom in discretionary consumption. The countrys per capita income is projected to more than double from $2,278 to $5,242 by 2031, with market capitalisation compounding 11% annually to reach $10 trillion.

Growth of e-commerce

Indias internet economy is on track to reach $1 trillion by 2030, with e-commerce leading the charge and expected to hit $325 billion. This growth offers businesses wider consumer access, efficient marketing and category expansion, while delivering unmatched convenience and accessibility for consumers across the country.

Home and personal care

Indias beauty and personal care market was valued at $28 billion in 2024 and is poised for steady expansion. According to IMARC Group, the market is projected to grow at a CAGR of 5.60% between 2025 and 2033, reaching $48.3 billion by 2033. Currently, West and Central India lead the sector, holding a significant share of the market. This growth is being fuelled by an increasingly diverse product portfolio, rising consumer preference for natural and organic offerings, and the expanding reach of e-commerce platforms. With digital channels bridging the urban- rural divide and younger consumers driving demand for clean, conscious beauty, the market is undergoing a rapid transformation. Innovation, accessibility, and a growing wellness focus are redefining Indias beauty narrativemaking it one of the most dynamic and promising segments in the broader FMCG landscape.

Poised for growth

Indias beauty and personal care landscape is undergoing a dramatic shift, driven by rising discretionary spending and a more aspirational consumer base. With disposable incomes on the rise, Indians are now prioritising nonessential purchases, with discretionary retail projected to grow at 1.5 times the pace of essentials. Social media has become a powerful catalyst, with over 520 million users in 2023 enabling brand discovery, trend dissemination, and influencer-led marketing at scale. E-commerce is also unlocking new markets, set to contribute nearly 33% of total Beauty and Personal Care (BPC) sales by 2028, bridging access across geographies. Consumers are embracing premium beauty, with this segment expected to touch $3-3.2 billion by 2028*, reflecting heightened demand for quality and sophistication. Simultaneously, innovation is accelerating, as ingredient-led, customised solutions and novel formats gain traction. Together, these shifts are reshaping Indias beauty market into one that is digital-first, premium-oriented, and highly responsive to evolving consumer needs.

Nutraceuticals

The global nutraceutical market is currently valued at approximately $400 billion*, combining elements of the food, pharmaceutical, and biotechnology industries. India has emerged as a significant player, underpinned by its deep- rooted heritage in traditional knowledge systems particularly Ayurveda and a distinctive ecosystem that supports sectoral growth. However, Indias global share remains below 2%, largely due to the absence of a clearly defined industry classification within government ministries, which restricts the provision of targeted support and dedicated policy focus for the nutraceutical sector.

~$ 400 billion

Current valuation of the global nutraceutical market

Outlook

Recognising the immense potential of the sector, the Council of Scientific and Industrial Research (CSIR) established a Nutraceutical Sector Task Force (TF) in November 2021, chaired by the Principal Scientific Adviser to the Government of India. India has also prioritised infrastructure development, setting up nutraceutical incubation hubs and Centres of Excellence. Through the Department of Commerce, the country has actively promoted its nutraceutical capabilities at international trade fairs, increasing global visibility and building connections with international stakeholders. These strategic efforts are paving the way for transformative growth in the sector. India aspires to become a global leader in nutraceuticals by seamlessly integrating its rich traditional knowledge with cutting-edge scientific advancements, thereby attracting global collaborations and investment opportunities.

*Press Information Bureau (PIB)

Growth Drivers Health takes centre stage

Post-pandemic, rising disposable incomes and growing health awareness have transformed daily supplements into essentials for Indian households, reflecting a shift towards proactive wellness.

Click-to-Care convenience

The expansion of digital marketplaces, direct-to- consumer (D2C) brands, and e-commerce platforms has made nutraceuticals more accessible than ever-offering diverse options, fast delivery, and seamless returns.

Affordable preventive care

With medical inflation reaching 14% in 2024 and limited health insurance coverage, nutraceuticals offer a cost- effective alternative to manage deficiencies—particularly as 80% of Indians lack essential micronutrients.

Influencer-driven wellness trends

Social media and influencer marketing are shaping consumer choices, with beauty and fitness supplements for skin, hair, and nails gaining popularity among a more appearance-conscious, digitally connected population.

Edible oils

India has seen a marked rise in per capita edible oil consumption over the decades, now reaching 19.7 kg per annum. However, this growing demand has significantly outstripped domestic production, resulting in a heavy reliance on imports. In FY 2022-23, India imported 16.5 million tonnes of edible oils, with local output meeting just 40-45% of total requirements. Imports currently account for 57% of domestic demand, posing a key challenge to the nations goal of self-sufficiency. To bridge this gap, the Government has implemented a multi-pronged approach, including the launch of the National Mission on Edible Oils - Oil Palm (NMEO-OP) with an outlay of H 11,040 crore to boost oil palm cultivation#. Additionally, the Minimum Support Price (MSP) for oilseeds has been raised to ensure better returns for farmers. Programmes like PM-AASHA and a 20% import duty on edible oils further support domestic cultivation, safeguard farmer incomes, and reduce reliance on cheaper global imports.

#Press Information Bureau (PIB)

19.7 kg per annum

Per capita edible oil consumption*

Outlook

India is intensifying efforts to bridge the demand-supply gap in edible oils and pave the way towards self-reliance. Under a Business-As-Usual (BAU) scenario, domestic edible oil production is projected to rise to 16 million tonnes by 2030 and 26.7 million tonnes by 2047. In a landmark policy move, the Union Cabinet approved the National Mission on Edible Oils - Oilseeds (NMEO-Oilseeds), aimed at boosting oilseed production and realising the vision of an Atmanirbhar Bharat. Set to be implemented from FY 2024-25 to FY 2030-31, the mission has a financial outlay of H 10,103 crore. It targets raising primary oilseed output from 39 million tonnes in FY 2022-23 to 69.7 million tonnes by FY 2030-31. Combined with NMEO- Oil Palm, this could increase domestic edible oil production to 25.45 million tonnes—meeting 72% of national needs. Over 600 Value Chain Clusters across 347 districts will empower farmers with quality seeds, Good Agricultural Practices (GAP) training, and climate-resilient advisory services.

Wind Power

India, the worlds fourth-largest wind power generator, boasts an installed capacity of 51.5 GW. Since its launch in June 2020, the Centralised Data Collection and Coordination (CCDC) Wind Initiative has significantly advanced the sector by enabling data-driven site selection and high-resolution wind mapping. As a result, wind capacity surged from 21.04 GW in 2014 to 51.50 GW by June 2025, including a 10 GW increase between 2020 and 2024 alone. Spearheaded by the National Institute of Wind Energy (NIWE), the initiative has established over 800 wind-monitoring stations and identified 50+ high-potential sites, enhancing the viability of clean energy projects nationwide.

March 2014 June 2025

Outlook

Indias national energy ambitions are bold and unequivocal: to source 50% of its power capacity from non-fossil fuel sources by 2030 and to achieve net-zero emissions by 2070. Wind energy is not merely a part of this vision—it is central to it, forming the backbone of both our renewable energy strategy and the Atma Nirbhar Bharat initiative. Marking a major milestone in diversifying Indias clean energy mix, the Union Cabinet in 2024 approved a H 7,453 crore Viability Gap Funding (VGF) scheme to launch the countrys first offshore wind energy projects. Of this, H 6,853 crore is earmarked for developing 1 GW of offshore capacity—500 MW each off the coasts of Gujarat and Tamil Nadu—while H 600 crore is allocated for port infrastructure upgrades, ensuring robust logistical support and paving the way for long-term success of these pathbreaking ventures.

Business Overview

During the year, the Company intensified its focus on enhancing the revenue mix of its Food and FMCG segment. On November 1, 2024, the Company successfully acquired the Home and Personal Care (HPC) division from Patanjali Ayurved Limited, further strengthening its transformation into a diversified FMCG enterprise. The year also marked a milestone, with the Company achieving its highest- ever standalone revenue from operations and record profitability metrics.

The Company continued to place strong emphasis on brand building, with marketing and promotional spending nearly doubling year-on-year. Focused marketing initiatives aimed at strengthening brand visibility, enhancing recall, fostering customer loyalty, and building deeper consumer connections were undertaken during the year. A diverse set of celebrity brand ambassadors, including M.S. Dhoni, Shilpa Shetty, Shahid Kapoor, Tamanna Bhatia and Tiger Shroff endorsed various products, reinforcing the Companys strong consumer connection. In addition, the Company undertook several strategic initiatives to expand its plantation assets, laying a solid foundation for long-term growth. The year also marked the first full year of operations of the solar power plant commissioned at Lodhiwala, Uttarakhand, underscoring the Companys commitment to sustainability and renewable energy.

In FY25, the Company reported total income, including other income, of K34,289 crore, compared to K31,962 crore in the previous year, representing a strong year-on-year growth of 7.28%. EBITDA stood at K2,079 crore, the highest since acquisition. The newly acquired HPC division contributed revenues of K1,149 crore during the five-month post-acquisition period. Overall, the Food & FMCG business, including the HPC segment, achieved revenues of K9,701 crore, accounting for ~28% of total revenue and ~43% of EBITDA. The Edible Oil segment recorded revenues of K24,785 crore, comprising K1,262 crore from Oil Palm Plantations and K173 crore from Oleochemicals. The Wind Turbine Power Generation segment, with an installed capacity of 84.6 MW, delivered revenues of K40 crore. The oil palm plantation business expanded significantly, with an additional 15,170 hectares brought under cultivation during the year, taking the overall planted area to new highs.

Food and Other FMCG segment

The Food and Other FMCG segment recorded annual revenues of H 8,552 crore, contributing 24.77% to the Companys overall revenue mix, with an EBITDA of H 714 crore. This performance reflects the strong momentum within the FMCG portfolio, underpinned by the Companys extensive distribution network and trusted brand equity. By capitalizing on the rising consumer preference for health and wellness products, the segment has been able to reinforce its market positioning and drive steady growth.

Looking ahead, the Company is focused on accelerating the expansion of its FMCG portfolio across its four distinct verticals by leveraging a state-of-the-art distribution ecosystem that spans general trade, modern trade, direct- to-consumer (D2C), and e-commerce platforms. This multichannel approach ensures deeper market penetration and greater consumer accessibility. With innovation, portfolio premiumisation, and health-oriented offerings as key strategic levers, the segment is well positioned to capture emerging opportunities, enhance profitability, and deliver sustained value for stakeholders.

The Foods business, comprising Ghee, Honey, Dry Fruits, Spices & Condiments, Beverages, Herbal Products, and Staples, recorded revenues of H 6,208 crore during the year. With a strategic focus on the growing demand for packaged and branded foods, the Company offers a portfolio of uniquely positioned, health-oriented products that resonate with evolving consumer preferences. A strong presence across categories, coupled with an emphasis on health and wellness, enables the Company to serve both domestic and international markets effectively.

Quality excellence and margin optimisation remain central priorities, ensuring superior value delivery to consumers while driving profitability. With significant growth potential and high-volume scalability across its product offerings, the Foods business is well-positioned to contribute meaningfully to the Companys long-term success.

Biscuits, Cookies, Rusks, Noodles & Breakfast Cereals category delivered sales of H 1,677 crore, with ‘Doodh Biscuits crossing the H 1,000 crore milestone for the second consecutive year. Building on this momentum, the Company is strategically leveraging its marquee brands while expanding its portfolio with innovative products to strengthen its presence in urban markets. A key focus remains on accelerating the premiumization of the portfolio, which is expected to drive higher margins and market share. In addition, investments in capacity expansion and capability enhancement are underway to broaden reach and better serve consumers. These initiatives will enable the Company to capture new growth opportunities and further consolidate its position in Indias fast-growing packaged foods market.

Textured Soya Protein (TSP) and traditional soya products recorded annual sales of H 603 crore. Nutrela, one of the most trusted 100% vegetarian soya food brands in the country, has built strong consumer loyalty over more than 35 years and is widely recognised as a household name for soya foods in India. With a growing focus on health and super-food offerings, the brand continues to expand its portfolio to cater to evolving consumer preferences in both domestic and international markets. Going forward, the Company remains committed to strengthening Nutrelas positioning as a symbol of good health and nutrition, while leveraging its brand equity to drive sustained growth.

The revamped Nutraceuticals business delivered annual sales of H 64 crore, positioning the Company as an emerging player in this high-growth segment. Distinguished by a unique integration of Ayurveda and modern science, supported by multiple certifications, the Company is well placed to capture the expanding opportunities in the Nutraceuticals market. With e-commerce established as a primary consumer channel, the portfolio has been revitalized and segmented to cater to diverse age groups. Going forward, continuous innovation and product development at the Companys state-of-the-art R&D facility will remain central to driving growth, strengthening market presence, and unlocking long-term value for stakeholders.

Over the medium to long term, the Company will remain focused on key strategic priorities aimed at driving sustainable growth. Strengthening brand equity through enhanced marketing investments will be a central pillar, supported by continued expansion of distribution reach across all channels—including general trade, Patanjali franchise stores, modern retail, e-commerce, quick commerce, and exports. Building on the strong momentum of the FMCG segment, the Company is committed to gaining market share by accelerating consumer-centric innovations and broadening its product portfolio. These initiatives are expected to create long-term value for stakeholders and reinforce the Companys position as a leading FMCG player.

Home and Personal Care (HPC) segment

The Company acquired the Home and Personal Care (HPC) business of Patanjali Ayurved Limited (PAL) on a slump sale basis, effective November 1, 2024, for a consideration of H 1,100 crore. This acquisition marks a reaffirmation of the Companys commitment to strengthening its position as a leading FMCG enterprise and advancing its journey towards becoming a major player in the sector. The HPC business of PAL carries strong brand equity in Indias FMCG landscape and enjoys a loyal consumer base across the country. The strategic acquisition has further strengthened the Companys FMCG portfolio with a range of marquee brands, expected to contribute meaningfully to revenue growth and EBITDA in the years ahead.

The HPC business currently operates across four key categories—Dental Care, Skin Care, Home Care, and Hair Care.

During the five-month period following the acquisition, the business recorded revenues of H 1,149 crore and EBITDA of H 172 crore, with revenue contributions of H 622 crore from Dental Care, H 280 crore from Skin Care, H 145 crore from Home Care, and H 102 crore from Hair Care & Others.

The acquisition has not only consolidated the ‘Patanjali Foods FMCG portfolio under the Company but also created opportunities to unlock synergies in brand equity, product innovation, cost optimization, distribution, and operational efficiencies. These initiatives are expected to enhance competitiveness, drive sustainable growth, and strengthen market share in the years ahead.

On July 1, 2024, the Board of our Company approved the acquisition of Patanjali Ayurved Limiteds (PAL) Home and Personal Care (HPC) business on a slump sale basis, aimed at strengthening our Companys FMCG transformation journey. Effective November 1,2024, the acquisition includes 91 products across four key categories—Dental Care, Skin Care, Home Care, and Hair Care—together with land, buildings, plant and machinery, inventory, distribution network, employees, and all associated liabilities.

As part of the transaction, our Company has also entered into a 20-year brand licence agreement with PAL, under which it will pay 3% of gross sales, subject to a minimum annual commitment of K83 crore.

FMCG Business

The FMCG business, comprising of Food and Other FMCG segments along with the recently acquired Home and Personal Care (HPC) segment, delivered revenues of H 9,701 crore and EBITDA of H 886 crore during the year. Contributing ~28% to the Companys overall revenues and ~43% to EBITDA, the FMCG portfolio has emerged as a key growth driver. This performance reflects steady progress towards the Companys long-term strategic vision of evolving into a strong and diversified FMCG enterprise. Looking ahead, the FMCG business is well positioned to capitalise on portfolio synergies, expanding consumer demand, and strengthening distribution networks, thereby unlocking further growth potential.

Edible Oils Segment

The Edible Oils segment continued its growth trajectory despite a challenging external environment and regulatory changes during the year. The segment reported revenues of H 24,785 crore and EBITDA of H 1,151 crore. Notably, branded edible oils contributed nearly 75% of total segment sales, catering to a wide spectrum of consumers. Within the segment, revenues comprised H 23,350 crore from the Edible Oil business, H 1,262 crore from the Oil Palm Plantation business, and H 173 crore from the Oleochemicals business. With a strong presence built over three decades, the Company has developed an extensive, fully integrated infrastructure, thereby reinforcing its position as a leading player in the industry.

Our Edible Oils Business Segment comprises of Edible Oils business, Oil Palm Plantation & Oleochemical business. Edible Oils Business

The Edible Oils segment delivered robust growth during the year, with sales of H 23,350 crore, reflecting an increase of approximately 11% on a year-on-year basis. The year also marked a significant repositioning of our edible oils portfolio, supported by targeted marketing and enhanced consumer engagement. The Company continued its successful association with celebrity cricketer M.S. Dhoni as brand ambassador for its flagship Mahakosh and Sunrich edible oil brands, while also onboarding renowned actor Khesari Lal Yadav to promote its Mustard Oil variant.

Our Company retains leadership in the Palm Oil segment and continues to be a prominent player across Soyabean Oil, Sunflower Oil, Mustard Oil, and other edible oil variants, as well as value-added bakery products. This strengthened marketing thrust has enabled our brands to resonate more closely with the aspirations of Indias diverse demographic base.

While edible oil markets remained volatile during the year, conditions were relatively more stable compared to the preceding period. Our performance in this environment highlights the resilience of the Companys risk management framework and its ability to mitigate market fluctuations effectively. Looking ahead, the macroeconomic outlook for FY 2025-26 appears favourable, with declining food inflation and a reduction in GST rates expected to boost consumer demand, thereby creating opportunities for sustained growth.

Strong brands catering to all consumer segments

Oil Palm Plantation Business

Our backward integration strategy continued to yield strong results during the year. The total plantation area expanded by 15,170 hectares, taking the cumulative coverage to 89,546 hectares as on 31^st March 2025. A noteworthy development was the rise in the share of young plantations (0-3 years), which increased from 33.37% to 43.66%. In parallel, the Company strengthened its nursery infrastructure, expanding the network to 49 state-of-the-art nurseries as of March 2025. These initiatives are aimed at expanding and rejuvenating plantation assets to support sustainable long-term growth.

Our plantation operations now span across 12 Indian states, under the broader mission of contributing to the nations edible oil security, positively impacting the livelihoods of 63,915 farmers. The total area allocated to the Company stands at 6.77 lakh hectares, reinforcing our leadership in the sector.

Oil Palm Plantation

The Oil Palm Plantation segment continued to expand, with the total area under cultivation reaching 89,546 hectares.

Oleochemicals Business

During the year, the business achieved sales of H 173 crore, with exports spanning 14 countries. The business continues to strengthen its presence in both domestic and international markets, catering to the requirements of institutional customers. Our downstream oleochemicals business efficiently utilises by-products generated primarily from edible oil refineries to manufacture products such as soap noodles, glycerine, distilled fatty acids, and value-added derivatives of castor, soya, and palm. These products, with applications across diverse sectors including lubricants, paints, crayons, personal care, cosmetics, and pharmaceuticals, are increasingly gaining preference over petroleum-based alternatives.

Wind Turbine Power Generation Segment

Our Companys wind energy segment remains central to its sustainable growth strategy, with 84.6 MW of installed wind capacity-supplying clean electricity to state power grids and utilizing 18.6 MW for captive needs across its facilities. These efforts support reduced carbon emissions, stable energy costs, and compliance with evolving regulatory demands. Operations span 16 locations in six states, underscoring an extensive commitment to renewable sourcing.

Building on this momentum, the Company has further diversified its energy portfolio with captive solar capacity of 0.50 MW at the Lodhiwala, Uttarakhand plant, reinforcing its drive toward a greener operational footprint. Together, these initiatives position the Company as an industry leader in sustainable practices and ensure long-term value creation for stakeholders. Looking ahead, the Company continues to explore and invest in innovative clean energy solutions, further accelerating its transition towards a low-carbon and resilient future.

Performance and Financial Overview

Our Company has experienced a remarkable financial performance, with revenue reaching the highest-ever to H 34,157 crore in FY 2024-25 with a 7.61% yoy growth. Our EBITDA increased significantly by 36.89% to H 2,079 crore, accompanied by a 70.08% jump in profit after tax to H 1,301 crore, reflecting robust financial momentum. In a landmark step towards becoming a diversified FMCG player, we completed the H 1,100 crore acquisition of a reputed Home and Personal Care (HPC) business from Patanjali Ayurved Limited in FY 2024-25. This strategic move enhances our manufacturing capabilities, distribution network and talent base, positioning us for strong revenue and EBITDA growth gomg fon^d. * in Lakhs)

Financial Review and Analysis	FY 2024-25	FY 2023-24
Total income (including other income)	34,28,940.14	31,96,162.50
Less: Total expenses other than finance cost and depreciation	32,21,035.22	30,44,281.47
Profit before depreciation, finance cost and tax	2,07,904.92	1,51,881.03
Less: Finance cost	8,449.31	18,989.87
Less: Depreciation and amortisation and impairment expenses	26,839.18	26,882.64
Profit for the year before exceptional items and tax	1,72,616.43	1,06,008.52
Profit for the year before tax	1,72,616.43	1,06,008.52
Total tax expenses	42,482.27	29,493.43
Net profit for the year after tax	1,30,134.16	76,515.09
Add: Items that will not be reclassified to statement of profit and loss	(1,245.12)	1,031.83
Add: Items that will be reclassified to statement of profit and loss	(1,244.66)	399.37
Total comprehensive income for the year	1,27,644.38	77,946.29

Details of Significant Changes in the Key Financial Ratios and Return on Net Worth Under Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios and any changes in return on the net worth of our Company including explanations thereof are given below:

Sr. Key Financial Ratios No.	Financial Year		Change in Key	Explanation
	2024-25	2023-24	Financial Ratios (%)
1 Debtors turnover ratio	22.63	20.94	8.07	Not applicable
2 Inventory turnover	6.83	8.07	(15.37)	Not applicable
3 Interest service coverage	21.43	6.58	225.68	This growth was driven by improved profit margins and lower finance costs.
4 Debt service coverage	20.46	3.47	489.63	Lower finance costs this year, along with the repayment of long-term borrowings (Preference Shares) last year, contributed to the increase.
5 Gearing ratio	0.07	0.10	(30.00)	This was a result of lower total debt and higher total equity during the current year.
6 Current ratio	2.29	2.57	(10.89)	Not applicable
7 Debt-equity ratio	0.07	0.10	(30.00)	Owing to a decline in total debt and an increase in total equity during the current year.
8 Operating profit margin	5.28%	3.91%	35.04	The increase is attributable to an improvement in profit margins.
9 Net profit margin	3.81%	2.41%	58.09	Attributable to higher net profit in the current year.
10 Return on net worth	12.06%	7.63%	58.06	This reflects the improvement in net profit during the current year.

Internal Control Systems

Our Company has a well-established and comprehensive internal control system and structure across the value chain to ensure that we safeguard our assets, authorise our transactions, record and report them correctly, and conduct our operations efficiently and cost-effectively. Our Company has well-defined policies and procedures that cover all significant activities. We test its effectiveness, including financial closure and automated and entity-level controls. Adherence to these policies and procedures is vital to the management review process. Our Company has an online compliance management tool that offers comprehensive coverage of all laws that apply to the business and provides compliance updates for each of our operating units. The internal control system

is regularly tested and reviewed by an Independent Internal Auditor commensurate to the size and nature of the business. The Internal Auditor is appointed by the Audit Committee of the Board. We undertake continual internal audits covering various areas, intending to cover all material business processes and locations under internal audit. The Audit Committee reviews the internal audit programme at the beginning of the year to ensure adequate coverage of the areas. The management regularly reviews the reports of the internal auditor and takes corrective actions to strengthen the controls and enhance the effectiveness of the existing systems. We present the summaries of the reports and actions taken on audit findings to the Audit Committee of the Board.

Human Resources

At Patanjali Foods Limited, our human capital represents our most valuable asset and the driving force behind our sustained growth trajectory. Our comprehensive human resources strategy is built on the foundation of attracting, developing, and retaining exceptional talent while fostering an environment of excellence, innovation, and shared success.

Strategic Talent Management

Our talent acquisition framework is strategically aligned with organisational objectives, focusing on recruiting high-calibre professionals who embody our values and vision. We have strengthened our commitment to nurturing young talent through, recruiting Graduate Engineer Trainees (GETs) and Management Trainees (MTs) who bring fresh perspectives and contemporary skills to our organisation.

Our performance-driven culture emphasises merit-based advancement, continuous learning, and professional excellence. Through structured career development pathways and mentorship programs, we ensure our employees are equipped to meet evolving industry challenges while JQ contributing meaningfully to organisational success.

Employee-Centric Approach

01 We have established a participative management framework that encourages active employee engagement in decision-making

2 processes. This collaborative approach fosters innovation, enhances job satisfaction, and strengthens our organisational

-j culture of mutual respect and shared accountability.

z Our commitment to employee well-being is comprehensive. We offer:

2 Mediclaim coverage for employees and their families

3 Group Personal Accident (GPA) insurance

4 Term Life Insurance for financial protection

5 Regular health awareness programs and on-site medical camps to promote preventive healthcare

Value Creation and Recognition

Recognising that employee success drives organisational prosperity, we have implemented strategic value-sharing mechanisms. The issuance of Employee Stock Ownership Plans (ESOPs) and Bonus Shares to eligible employees reflects our commitment to shared growth and serves as a powerful retention tool for key talent.

Our recognition as a Great Place To Work? certified organisation, 4^th year in a row along with Top 50 Large Indias Best Workplaces in Manufacturing 2025 validates our efforts in creating an inclusive, supportive, and empowering work environment that prioritises employee satisfaction and professional fulfilment.

Operational Excellence through Technology

We continue to enhance our Human Resources Information Systems (HRIS) through digital transformation initiatives that

streamline processes, improve efficiency, and enable data- driven decision making. These technological advancements support our commitment to delivering exceptional employee experiences while maintaining operational excellence.

Our learning and development ecosystem encompasses comprehensive upskilling and reskilling programs designed to keep our workforce at the forefront of industry best practices. Leadership development initiatives ensure strong succession planning and cultivate the next generation of organisational leaders.

Future-ready Workforce

Through our integrated approach to talent management, wellness initiatives, participative engagement, and continuous development, we are building a future-ready workforce capable of driving sustained competitive advantage. Our human resources strategy positions Patanjali Foods Limited as a preferred employer while ensuring our people remain our greatest strength in achieving long-term organisational objectives.

Information Technology (IT)

We have implemented several key projects during the year to improve the functionality of our IT:

Integration of PALs non-food business into PFL

Rollout of Fintech software for investment and trade finance

Transformation of weighbridge application

Enhanced cybersecurity with Next-Generation Firewall across all India offices and plants

EHS application deployed across all PFL plants to monitor and manage environmental, health and safety compliance

Migration initiated from SAP ECC to S/4 HANA on Rise

Implementation of Sapphire (ITSM & IAM) to streamline IT operations, align services with business goals, and ensure compliance

IPSec Tunnel deployed at depots and nurseries to strengthen cybersecurity

Cautionary Statement

Certain statements in the ‘Management Discussion and Analysis section may be forward-looking and are stated as required by applicable laws and regulations. Many factors may affect the actual results, which would be different from what the Board of Directors envisage in terms of future performance and outlook. Investors are cautioned that this discussion contains forward-looking statements that involve risks and uncertainties including, but not limited to, risks inherent in our Companys growth strategy, dependence on certain businesses, dependence on the availability of qualified and trained manpower and other factors discussed. This discussion and analysis should be read in conjunction with the Companys financial statements and notes on accounts.