Patanjali Foods shares rally 17% in 1 week, eyes record high; here's why

The board of directors of Patanjali Foods, in its meeting held on Thursday, July 17, 2025, recommended the issue of bonus shares in the ratio of 2:1

Patanjali Foods share price today

 

Patanjali Foods shares gained 2 per cent to ₹1,944.90 on the BSE in Friday's intraday trade, in an otherwise weak market, extending its rally into fifth straight trading day. The stock of the consumer goods company has surged 17 per cent during the period. Further, it is trading close to its all-time high level of ₹2,030, touched on September 4, 2024.

 

At 10:03 AM, Patanjali Foods share price was trading 1.7 per cent higher at ₹1,942.10, as compared to 0.37 per cent decline in the BSE Sensex.  CATCH STOCK MARKET UPDATES TODAY LIVE

 

What's driving Patanjali Foods stock price?

 

The board of directors of Patanjali Foods, in its meeting held on Thursday, July 17, 2025, recommended to issue bonus shares in the ratio of 2:1 i.e. two new equity shares each for every one existing equity share held by eligible equity shareholders of the company as on record date.

 

The bonus issue is subject to approval of the shareholders of the company, by capitalisation of capital redemption reserve and / or securities premium and / or general reserve, the company said in exchange filing.

 

Business overview

 

Patanjali Foods enjoys a healthy market position across several product categories. It is the second-largest player in India's branded edible oil market, the market leader in the palm oil segment and second in position in the soybean oil segment. It is also the market leader in the soya protein segment, commanding a 35-40 per cent market share. Further, the company is the fourth-largest player in India in the biscuits segment and in the oral care market. It is also among the largest players in India in the product segments of cow ghee and honey.

 

While the erstwhile Ruchi Soya Industries was largely focused on the edible oil business, Patanjali Foods has gradually diversified the business through the acquisition of various FMCG segments from Patanjali Ayurved. In addition to being margin accretive, these segments have also aided the diversification of Patanjali Foods’ portfolio and mitigated the impact of the inherent risks associated with the edible oil segment to a certain extent.  ALSO READ | Multiple order wins lift Afcons Infrastructure shares by 6%; details here 

The contribution of the FMCG segment to Patanjali Foods overall revenues has increased to around 30 per cent in FY2025 and is expected to grow further over the near to medium term, leading to further diversification of the business and stabilisation of earnings, according to Icra.

 

In the absence of any major debt-funded capex, the debt protection metrics are expected to remain strong in the long term as well. Its healthy financial profile is also aided by a strong liquidity position owing to healthy cash balances, liquid investments and unutilised working capital limits, the rating agency said in rationale.

 

As around 50 per cent of the revenue from the edible oils business is generated from palm oil, Patanjali Foods is also working towards expanding its palm plantation business, to reduce its import dependence for crude palm oil. In addition, the company has diversified to the FMCG segment to provide further stability to its earnings.

 

About Patanjali Foods

 

Patanjali Foods (formerly known as Ruchi Soya Industries Limited) is engaged primarily in the business of processing of oil-seeds, refining of crude oil for edible use, production of oil meal, food products from soya and value added products from downstream and upstream processing. The Company is also engaged in the Fast-Moving Consumer Goods (FMCG) and Fast Moving Health Goods (FMHG) business consisting mainly of food, biscuits and nutraceutical products.