Patanjali Foods (PATANJALI) | News Based Sentiment Analysis

• On August 14, 2025, Patanjali Foods reported a 31% year-over-year decline in consolidated net profit to ₹180.35 crore for the first quarter of fiscal year 2025-26, but revenue increased by 24% to ₹8,899.71 crore. This shows continued top-line growth despite profitability challenges, which the company attributed to higher advertising expenses and a drop in basic customs duty on edible oils effective May 31, 2025.
• Shareholders overwhelmingly approved a 2:1 bonus share issue, with September 11, 2025, set as the record and ex-date, following a board proposal on July 17, 2025. This means shareholders will receive two bonus shares for every one share owned, aiming to improve stock liquidity and broaden shareholder participation.
• Patanjali Foods will trade ex-dividend on September 3, 2025, for a final dividend of ₹2 per share for FY25, with the same date as the record date. This dividend payout signals management's confidence in the company's growth trajectory and cash flows.
• The company's shares traded positively on September 2, 2025, opening at ₹1,804.00 and closing up by 0.56% or ₹10 at ₹1,803.80, with a market capitalization of ₹65,120 crore, likely in response to the upcoming dividend and bonus share issue.
• On September 8, 2025, shares closed at ₹1,797.00, up by 0.44% or ₹7.80, with a market capitalization of ₹65,180 crore, continuing the positive trend following the bonus issue announcement.
• Analysts at Jefferies maintained a 'Buy' rating with a price target of ₹2,000.00 as of August 17, 2025, suggesting a potential upside of +11.78% from their previous target of ₹2,050.00, while forecasting earnings growth of 21.3% per annum and revenue growth of 7.1% per annum over the next three years.

The Investment Story: September was a month focused on shareholder returns for Patanjali Foods, with the approval and upcoming implementation of a bonus share issue and a dividend payout, alongside continued revenue growth despite some profit headwinds.

What It Means for Investors: The bonus issue and dividend provide direct returns to shareholders, while the positive analyst outlook and continued revenue growth suggest long-term potential. However, investors should be aware of the Q1 profit decline and the impact of changing edible oil duties on future profitability.

Looking Ahead: Investors should monitor the impact of the bonus issue on trading volume and the effect of the edible oil duty changes on future profitability. The record dates of September 3, 2025 (dividend) and September 11, 2025 (bonus share) are key dates to watch.

The Bottom Line: Patanjali Foods is balancing revenue growth with margin pressures, but remains committed to shareholder value through dividends and bonus issues. While the Q1 results present a challenge, the overall outlook remains cautiously optimistic, making it a potentially attractive investment for those willing to monitor profitability trends.