Patanjali Foods Ltd (NSE: PATANJALI) Q4 2025 Earnings Call dated May. 16, 2025
Corporate Participants:
Sanjeev Kumar Asthana — Chief Executive Officer
Kumar Rajesh — Chief Financial Officer
Analysts:
Vishal Shah — Analyst
Unidentified Participant
Kunal Shah — Analyst
Analyst
Disha Giria — Analyst
Ajay Thakur — Analyst
Naitik Mutha — Analyst
Vishal Gutka — Analyst
Abhijeet — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Patanjali Foods Limited Q4 and FY ’25 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star 0 zero on your touchstone phone. This conference call may contain forward-looking statements about the company,
Which are based on beliefs, opinions and expectations of the company as on-date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Please note that this conference is being recorded. I now hand the conference over to Mr Sanjiv Athana from Pathanjali Foods Limited. Thank you, and over to you, sir.
Sanjeev Kumar Asthana — Chief Executive Officer
Thank you thank you very much and good morning to all. Thank you. Thank you. Thank you for joining us today for Foods Limited’s call to discuss the results of Q4 ’25. I’m joined by the company’s CFO, Mr Kumar Adeshi, along with Mr Cha from the Investor Relations team and our IR strategic Partners, Strategic Growth Advisors. We have uploaded the results collateral on the stock exchanges as well as the company’s website for your reference.
Let me begin by giving a quick snapshot of our performance during the course of this call. We will be referring to standalone Financials. Thank you for the March quarter, we reported the highest-ever quarterly revenue from operations, the gross profits and the gross margins. Our revenue from operations stood at INR9,692.21 crores with 17.8% growth on a year-on-year basis. The gross profits were INR1,656.39 crores with a margin of 17.09%. The total EBITDA came in at INR568.88 crores, reflecting a margin of 5.87%. And while PAT was 354.54 — INR358.54 crores with a margin of 3.68%. Excuse me. For financial year ’25, the revenue from operations and all profitability metrics exceeded the performance of all previous years. During the quarter, the FMCG sector witnessed the following broad trends and operating conditions. In the Q4 ’25 experienced an overall moderate operating environment, the HMCG sector reported 11% year-on-year value growth in this quarter with volume contributing 5.1% and the prices contributing 5.6% of the growth. The volume growth was led by HPC categories, which grew at 5.7% due to strong rural demand. The food volumes reduced Q-on-Q basis from 6% to 4.9% in Q4 ’25, owing to decreased volumes in staples categories. While broader government initiatives stimulated rural consumption, some policies like distribution of free food grains and the various welfare schemes dampened the demand for certain staples such as wheat. The urban markets witnessed relatively muted growth, weighed down by persistent food inflation, high-interest rates and stagnating real wage growth. These factors collectively suppressed discretionary spending, particularly in non-essential and premium FMCG categories, leading to cautious consumer behavior in urban areas. On the cost front, the key commodity prices, particularly palm oil, wheat, sugar and rice remained at elevated levels during the quarter, exerting significant cost pressures. Now coming to Foods Limited, FY 2025 marked a pivotal chapter in our journey, aligned with our strategic objective to diversify our product portfolio and drive sustainable profitability, our Q4 ’25 marked the first full-quarter of integration of HPC business, which contributed 7.47% to their total top-line and 20.03% to the total EBITDA. Just like the success that we built on after acquiring the Foods and FMCG businesses, this acquisition too is poised to drive innovation, enhance our product offering and strengthen our position in the market. We aspire for our foods and other FMCG and HPC verticals to account for approximately half of our total turnover in coming years. During the quarter, we significantly strengthened our distribution capabilities and market presence in both urban and rural markets. We added 30,000 new retail outlets in Q4, expanding now to the total reach with the addition of HPC business to nearly 20 lakh retail outlets. The rural outreach was further enhanced through the expansion of the rural distribution network. We also aim to cover several villages under the Direct initiative in FY ’25-’26. In Q4 ’25, we spent 3.36% of the revenue from operations towards advertisement and promotion-related expenses. It included our campaigns like Mutrala’s collaboration with, Dance Banglade Dance, visibility during Mahakum among multiple initiatives for boosting Nutrala, it was prominently promoted at Mahakum. In FY ’25, we ramped-up our ad spend from INR to INR233 crores from INR71 crores in FY ’24, Which included onboarding various brand ambassadors like MS Dhoni, Kapoor, Shilpa Shetti, Tiger Shaf and Kamana. For the quarter, increase in expenses like employee cost and other expenses were partly due to integration of the HPC business and ESOP related businesses. As part of our CSR efforts, we partnered with Robin Hood Army to mark National Protein Day, a special campaign in and Delhi. The initiative garner very strong engagement both on the social media and the regular media channels. Coming to our segmental performance during the quarter in the Food and FMCG segment, the revenue for the Food and other FMCG segment was INR2,257.22 crores versus INR2,704.65 crores in Q4 of ’24. Similarly, to the previous few quarters, an elevated cost base has led to the contraction in margins. Biscuits recorded a revenue of INR426.25 crores in Q4 ’25 and INR1677.38 crores in FY ’25. Dude biscuit and continue to be amongst the best-performing biscuit brands for us with annual sales of crossing INR1,000 crores for the second consecutive year. An increase in the cost of raw materials such as palm, oil, sugar and milk does affect the margins. The shift in consumer preference also saw a major correction in key category due to rising prices. Despite this, we invested in the long-term brand-building for key by activating 30,000 outlets during the quarter. The early onset of summers led to a significant dip in sales of funny. The status, which include rice, Ata,, beat products and a couple of other spices reported a revenue of INR1,034.65 crores. Pharceuticals recorded a revenue of INR19.42 crores in Q4 ’25 with an expanded overall portfolio in FY ’25. We launched new products like, adult gummies and plant as well as new fitness STUs, including creating pre-workout products. We expect the momentum in this segment to pick-up in few quarters, supported by continued investment in products and brand development. Share proteins recorded sales of INR102.83 crores during Q4 ’25. Was honored with the Transitter Campaign of the Year 2025 Award for its impactful digital campaign. Indiaco, Mutrila. The sales landscape for both mass and premium product categories was driven by modern trade with commerce e-commerce. FY ’25 saw 7% year-on-year growth in the modern retail sales and 28% rise in e-commerce. As an update on the HPC business, the quarterly revenue for the HPC business segment amounted to INR728.48 crores and the EBITDA margin was 15.74%. Of the HPC segment, the benchal Care revenue was recorded at INR398.14 crores, followed by skincare at INR178.49 crores, home care at INR88 crores and the balance for hair air and hair-care and other products. Our oral care category remains the largest contributor within the HPC segment and has delivered good volume numbers, mainly driven by enhanced distribution across both urban and good volume, mainly driven by enhanced distribution across both urban and rural markets. Our flagship brand, continues to enjoy strong consumer trust. In Q4 ’25, we introduced a new variant, Fresh, which received very encouraging feedback. The Tooth segment itself has maintained its steady growth trajectory, supported by new product launches with a clear ambition to double the business over the next three years. To strengthen our position in the HPC segment, we are focusing on premiumizing the category while driving volume growth through increased penetration supported by competitively priced high-quality branded products. Coming to the edible Oil segment and oil palm Plantation business. Our edible Oil business posted revenues of INR6,764.08 crores with an EBITDA margin of 4.66%. Within this, the Palm Plantation segment generated revenue of INR229.32 crores with EBITDA margin of 5.27%. The branded edible oil country contributed to more than 75% of the total edible oil sales. While palm oil prices remained elevated throughout the quarter, the pricing environment for other key edible oils, namely soybean, sunflower and mustard was relatively favorable. The divergence in pricing trends helped balance overall input costs for blended oil products and provided some push into margins. During Q4 ’25, we saw upward and downward movements in cash markets for edible oils, which created favorable opportunities for both purchase and sale. There was no divergence between palm oil, physical prices and the CPO futures. In soy oil, we observed an 8% divergence, mainly due to rising futures prices, while the basis prices declined. Price volatility is an inherent part of the industry. Our deep market experience enables us to navigate it effectively. We employ a prudent risk management approach. We consciously reduced our hedge ratio to under 2% during the quarter, given the market volatility. We also optimized our physical Purchases to manage procurement costs more effectively. Our hedge strategy allowed us to navigate price fluctuations smoothly and protect our margins. As of March ’25, our total cultivated land stood at 89,546 sectors with 44.81% of our plantation falling within the prime age bracket of seven to 25 years, known for their high-yield potential as part of our ongoing commitment to advancing India’s edible oil Self-reliance Prosperity. We recently signed an MOU with the government of Manipur under National Mission on Edible Oils oil pump. We are set to cultivate 2,700 hectares of oil pump plantations. The cultivation has begun from April 25. We also set-up two new nurseries, two in Assan, three in Pradesh and one in Andhra Pradesh. Additionally, we continue to hold farmer awareness seminars to — for the best practices in oil palm cultivation and pest management, helping improve the overall farming process. The company is aggressively expanding its palm plantation portfolio and is working towards expanding its palm oil — falm mill experience. We reiterate our plan to take area under plantation to 0.5 million hectares over the next five years, which will cover about 60% of our requirement. Now I would like to summarize our overall financial performance in FY ’25. The total income stood at INR34,000 to INR89.40 crores. The total EBITDA of INR2,079.06 crores with year-on-year growth of 36.89%. PAT grew by 70.08% to reach INR1,301.34 crores. We are optimistic about the demand revival in the food, FMCG and HPC categories in both rural and the urban India. The falling cost basket of food inflation along with lower taxes and other supportive government policies is likely to aid a recovery in mass-market urban demand. This impact should be visible from the second-half of the fiscal year. Also, the stable prices of palm oil will prove to be a boon for us, both summer and the wedding season are expected to boost the demand and it is likely to gain market-share from sunflowers. Going-forward, we will continue to invest in expanding to our distribution network, brand-building to solidify our market position across few of our core categories such as edible oils, oral care, food and FMCG categories. With this, I conclude our presentation and open the floor for Q&A session. Thank you. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Vishal from ASK Investment Managers. Please go-ahead.
Vishal Shah
Thank you. Hi, team. Congrats on a good set of numbers. Sir, two questions from my side. I just wanted to understand your views on HPC women can perse business, approximately 70% of revenue. So what are your ambition from a two year or three-year perspective? Can we expect INR1,000 crore quarterly run-rate from this kind of business when I look from a of year kind of timeframe? And second question is on the food and SMBG business, where the revenues have declined in F ’25, what is the strategy as a whole?
What are we trying to do revive the growth momentum in coming years.
Sanjeev Kumar Asthana
So on the HPC business, we have already committed ourselves and we’ve repeatedly stated at the time of acquisition also and subsequently as well that we will maintain a minimum growth rate target of 15% year-on-year growth. For certain categories within that we find the quite attractive, especially in — and there’s a lot of focus that we have towards the premium sort of launcher-based skincare products. We are up our portfolio on the home care side.
So our conviction on the 15% year-on-year growth is fairly strong. And the margin expansion that we had sort of planned, it will take maybe four quarters to five quarters before we achieve that 200 basis-point margin expansion as well on account of the efficiencies and the distribution network expansion. So we’re reasonably confident that we’re achieving this. And the target is that we should be at double of where we currently are at this rate in about 4.5 years’ time.
And this will continue to grow because we find both the market is expanding. The space for premium product launches is looking very good. And likewise, the consumer traction with our offering on the newer launches that we’ve done in last 18 months, the part of that was India’s parent company is we will accelerate the process. We will have new products, new branding. We will continue to sort of invest with these new brand. And so there is a strong conviction that we should be able to achieve these growth numbers.
Coming to the decline in the Foods business, which was something that you got — so the two twin factors which have impacted this. One is that we saw very distinct slowdown in the urban sort of demand, especially for certain premium products in the, for example, the category. Similarly in the some bit of seasonal impact that we saw in the trash business. Likewise in certain other ethnic food categories like the medicated usage, etc., would be with the decline overall of the health risk perception that the consumers have had.
So now the work is clearly afoot. We expect three things to drive this growth now. One is the urban demand we are expecting with the announcement on the income tax release and others that came in the last budget, that should start spotting the consumer demand. We believe that you know the distribution expansion that we’ve embarked on, we’ve moved almost in last six months from 1.5 million to 2 million retail outlets with the addition of the HPC business.
So a lot of strategies are being worked on. So the reasonable confidence is that by the ethnic foods category, which saw a distinct decline, we should not only be able to arrest it, but we’ll continue to grow between 8% to 10% growth that we have set for ourselves, we should be able to recover market-share and we should continue to get back on that growth trajectory.
Vishal Shah
Thank you.
Operator
Thank. Thank you. The next question is from the line of Saloni from HT Capital. Please go-ahead.
Unidentified Participant
Hello, sir. So I want to know — I wanted to know about ESOP — ESOP cost and capex cost this year and for next couple of years.
Sanjeev Kumar Asthana
So I will address the capex cost part of it and would request Kumar to explain the ESOP costs. I’ll take quick. So as we have mentioned several times before, our large part of our capex, the regular capex spend that we have is close to about INR125 crores to INR150 crores per year is our targeted capex, which is required for the routine sort of maintenance costs and addition of few machines here or there. In year three and four, we are expecting almost over two years window.
We will invest close to about INR1,000 crores of spend we are anticipating in year four and five from today. And before that, in case any opportunity comes up, we might look at. But right now, there are no major capex plans that we have on cards to be spent over the next four years. We don’t need to spend on capex. On the ESOP treatment of the expenses, I would request our CFO, Kumar, to answer that. Sure, sir. So thank you very much.
This year, we have divided near about INR122 crores, INR10 crore per month as a cost for the fair valuation adjustment of Eastocks including the cost. This is the basic numbers okay yeah mister Lan, are you then?
Operator
Thank you. Before we take the next question, we would like to remind the participants to press star and one to ask a question. Thank you. The next question is from the line of Abshey Rout from DSM Securities. Please go-ahead.
Sanjeev Kumar Asthana
Hello. Good morning, sir. Am I audible? Yes, you’re audible.
Unidentified Participant
So how sustainable are the margins in our Edible Oil segments?
Sanjeev Kumar Asthana
So edible oil segment,, that we have said that we target you know, for example in the Edible Oil segment, this year we have done 4. Overall of 4.64% and we have stated that the range of margins is 2% to 4%. We are very confident that — and this is almost the Fifth quarter in the run that we’ve been sustaining the margin. So we are pretty much — so the effort that we’re doing towards the branded oil segment. The work that is happening on managing our supply-chain more effectively, the distribution network expansion that we’ve done, the spend on the ad and marketing that has happened over the years. So we are reasonably confident of maintaining our margin and hopefully on the higher-end of the chain. And this should not alter at all. For example, you would notice barring exceptional the year and a half before that four running quarters when the markets were in great turmoil, edible oil markets have stabilized. We don’t anticipate any significant movement either way. So the consistency of the profit that we speak about, the quality of margin that we speak about and the predictability of margin. I think we should be able to meet all the objectives that we set for ourselves.
Unidentified Participant
Okay. Okay. That’s it from my side. Thank you, sir and all the best.
Sanjeev Kumar Asthana
Thank you.
Operator
Thank you. The next question comes from the line of Yugi Modi from BT Capital. Please go-ahead.
Unidentified Participant
Yeah, good morning, sir. Thank you for this opportunity. Sir. I just had one question. Sir, the demand scenario still remains despite of falling inflation. How are we looking at the demand from both rural and urban areas as we speak and also for the couple of next quarters?
Sanjeev Kumar Asthana
Yeah. So you’re right. So the demand profile — the overall environment was fairly muted. Earlier it was led you know, know definitely by higher prices and stress in the cautious the consumer spend that we clearly witnessed in the urban areas. So the two expectations which are driving our conviction that we should see certainly a pickup in the — in the demand sort of momentum. One is, clearly we see on the side of the income tax relief that has been given to the classes this year that should be spurring a growth in the urban consumption. Second is the softening of the inflation, food inflation, especially to last quarter to 3.6% should be helpful.
Staples continue to be a challenge, the consumer staples overall as we see that the — on the side of the whether it’s a price on the wheat flour, whether we see price on the — partially still on the edible oils, if you see the prices in case of certain pulses, et-cetera. So there will be some stress on the staple side. But overall, the consumer demand-side looks healthy and it will aid in the recovery of the growth target that we had planned for ourselves overall. And I believe that overall sentiment looks certainly more positive than perhaps what it was in the last quarter.
Unidentified Participant
Okay. That’s sir. Sir, that answers my question. Thank you, sir.
Sanjeev Kumar Asthana
Thank you.
Operator
Thank you. The next question comes from the line of Kunal Shah from Jefferies India. Please go-ahead.
Kunal Shah
Hello. Good morning. Are you audible?
Sanjeev Kumar Asthana
Can you speak a little louder Kunal?
Kunal Shah
Hi, is it better?
Sanjeev Kumar Asthana
That’s better now. Yeah. Yeah, yeah.
Kunal Shah
Sir, my first question is on the oil business. So can you share the volume numbers for the quarter and how has that been?
Sanjeev Kumar Asthana
So basically on the volume front, now what we have had overall we — last year, we had done a number of 24.99 lakhs. This year the volumes have declined by 5%. This was primarily due to the larger part of the palm oil overall decline in palm oil because for last part of the year, the palm oil prices started to trade at a much larger premium to the soy and sunflower oil prices. And palm is the largest segment that we have because of which we saw this decline.
So for example, in last quarter versus this quarter, if I were to look at, we have in the palm oil segment, we had 2.6 lakh tonnes. This — now this quarter, we had 2.25 lakh tons is what we did. Similarly, on the soya bean oil, we had a much larger pickup. We had 1.26 lakhs in the Q3 of last — this year — previous year. In the Q4, we had 1.5 lakh tons. So there was a growth pickup. In the sunflower category, we moved it up by marginal about 3,000 tons. So broadly, the decline has been palm oil, which is also an industry trend as well.
But overall, if you see that on an overall basis that the decline largely has been marginal between Q3 and Q4. But overall on a yearly basis, the decline also has been slightly about 100,000 tonses drop that we saw. But that will pick-up because the palm oil prices have sort of tapered off. They have reached a level of agreement, which is trading at a slight discount to the overall oil prices and we should be in a reasonably good position now.
Vishal Shah
Okay. Understood. Understood. That’s very clear. Our second bit is on the plantations business.
Sanjeev Kumar Asthana
And Kunal, I just wanted to say one more thing that — and palm oil also is the least generator of the profitability for us. So to that extent, the — what we are much more focused always is on the premium oils like soya and sun and palm is a big driver volume growth for us. But in terms of profitability or marginal dip, so that’s why I repeatedly have said that it is not the absolute margin per se, but the quality of margin. So we are much more focused on soy and sun and mustard because they are the premium oil categories.
So palm marginal decline in a quarter or two quarters really doesn’t impact our overall profitability profile.
Kunal Shah
Okay. Understood. Understood. That’s very clear. Second bit is on the plantations business. So if you look at the acreage, that’s gone up by around 15,000 hectares this year. So how — I mean, when you put out this target of 500,000 hectares in the next five years, would that be front-ended in the next few years or would that be, let’s say, a bit back-ended.
Sanjeev Kumar Asthana
Sure, sure. So there is a lag as we explained that pump attrition has a typically 15 to 18-month cycle on the ceilings sort of matured enough for small plants to be planted. And so there’s always a lag, but the momentum is going to pick-up. So for example, this year, the target is that we should do 40,000 hectares. Next year, the pickup will be 125,000 hectares and thereafter it will continue on that same momentum trajectory. And so now the pickup at a scale and level is going to be significantly higher.
And in-line with that, we’re consistently ensuring that three steps, A, that the number of nurseries has gone up substantially in this period. The ceilings that we have are like the imports that we are back, they are in a growth mode and they are already to be planted now. The pickup earlier what we used to have 5,000 and 6,000 hectares a year, I’m talking of three years back has now started gone through almost last 15,000 hectares, this year 40 next year 125,000 hectares.
So we are reasonably confident of achieving our target in five years of 0.5 million hectare and progressively that also as they come into the maturity phase of the fruiting, we also expect the margin profile to start picking-up for the overall business itself.
Kunal Shah
Okay. Understood. Understood. That’s very clear. On that note, possible to share the margin profile for plantations this year?
Sanjeev Kumar Asthana
Yes. Of course. Yes, of course. So this year we had, for example, in Q4, we had a — EBITDA was INR12 crores. But overall for the years — for this year in FY ’25, our revenue from plantation business was INR1,263 crores. The EBITDA was INR203 crores, which is 16% and this is in comparison to INR951 crores FY ’24 and INR156 crore EBITDA.
Kunal Shah
Understood. Understood. As we’ve maintained that it’s always generally a pretty consistent annuity business for us. And in general, we are able to maintain that the margin construct and so we’re pretty confident of this being in the ballpark range of 16% to 18% on a consistent basis. Okay. Understood. Understood. That’s clear. My second question was on the HPC business.So good, good numbers there both on-top line and margins.
We hear from a lot of peers that there’s a lot of competition in oral care at least in the last few months, which is also your largest category. Can you share how — I mean, what’s helped your numbers and what are the trends that you see in this category of in the market and from your perspective?
Sanjeev Kumar Asthana
So overall, two trends are driving this. So it’s a hypercompetitive category. There’s no question about it. So one is the core sort of consumer base that we have in company that not only remains intact, that continues to establish itself at a growth in a growth mode. We typically have seen 6% to 7% growth in that in that space that we have achieved in the first-quarter — this year, in the Q4 of ’25. Now the target going-forward is what we believe Is that the new range one can’t be fresh, the extra push that we are making in the total care category, the new variants that we’re launching, market is also getting very deeply segmented now. And you know the different categorization as we are doing in the other areas, we’re looking at different sort of age groups, different beaker segmentation and that is what is going to be the strategy of the company. So the target is that if we can continue to grow higher than the market at somewhere around 10% as a ballpark number for dental care. Continue to drive innovation with the new product launches. There is a confidence that we should be able to achieve 10% growth rate in the dental care category. And broadly, that is the plan. Similarly on the on the business of the opportunity is much larger that we see in the skincare and home care and there are multiple different products that we are continuing to sort of bring to the market. There’s a lot of strategy towards — towards pushing it through the e-commerce and quick commerce route now. The modern trade as a distribution channel is emerging. So we are reasonably confident of 15% growth rate what we’ve set for assets this year. We should be able to achieve it comfortably, but with a lot of effort, which has to go into terms of distribution expansion and the product innovation.
Kunal Shah
Okay. Understood. Understood. Understood. And on the margin side, this guidance which you have given for next few quarters, I mean, let’s four, five quarters, 200 bps gain from synergies and distribution improving. So this basically means that the 17% margin that this business was acquisition or minus 3% royalty, which takes you to 14%, we are looking back to let’s say, 16%, 19% margin in the medium-term, that would be a fair way to look at it?
Sanjeev Kumar Asthana
Yes. So as we said that this additional 200 bps margin to take-in would take certainly a good four to five quarters before we — that synergy starts to sort of kick-in. And so the — somewhere around the Q1 or Q2 of FY ’26 is what we’re estimating that we should — we — we should start to see some results. And so the idea is that somewhere around next fiscal that we should see in the first-quarter or second-quarter, I think we should start to see the impact of 200 basis-points expansion in the margin.
So we should head back towards somewhere around 16% to 17% the margin construct in the business and that looks reasonably achievable.
Kunal Shah
Understood. And finally, I have a couple of bookkeeping questions. So this cost, sir,
Operator
But I may request you to rejoin the question queue for follow-up questions.
Kunal Shah
Sure, sir. I’ll do that. Thank you.
Analyst
Thank you.
Operator
The next question comes from the line of Disha from Ashika Institutional Equities. Please go-ahead.
Disha Giria
Hi, sir, good morning. I just have one bookkeeping question. There seems to be some destatements within your revenue figures and your other income. So if you could just let us know what the reason for behind it?
Kumar Rajesh
Thank you. Yes. MR. Kumar Rajesh will answer that question. Yeah, yeah. Thank you. So basically, we were incorporating the seedling income from palm plantation and some export subsidy into the other income earlier. So this year, we have changed the methodology and this year we are about it. This year we have transferred this revenue from other income to the oil segment income from operations. And that — so this year the amount is 47.50 cr,
Which have been transferred from other income to income from operation and last — last year it was near about 20 cr.
Disha Giria
Okay. Yeah, that’s it from my.
Sanjeev Kumar Asthana
Yeah. Yeah.
Operator
Thank you. The next question comes from the line of Abhishek Matthur from Systematix Shares and Stocks. Please go-ahead. Mister Matthur, your voice is breaking, sir. No, sir, it’s still breaking. May I request you to rejoin the conference? Thanks. The next question comes from the line of Ajit Hakur from Anand Rathi Securities. Please go-ahead. Your questions.
Ajay Thakur
Hi, sir. Thanks for taking my question. So wanted to get some understanding on the — the credible oil margins actually. So you had more kind of highlighted that the bulk of the margins actually or quite a bit of a part of the margins actually is coming from the sunflower or the non-palm oil kind of oil businesses. So wanted to get a sense of what would be the average contribution generally if you were to look at the EBITDA margin constitute, what would be the average constitution of the palm oil or what would be the contribution of edible oil to that segment — to that segment overall.
Sanjeev Kumar Asthana
So I’ll just clarify on the front of pharma, what I said was that there is a volume decline of 100,000 tons that does not mean that the palm oil does not make margins. It’s amongst the lower-margin products for us. So the drop-in about 100,000 tonnes of the volume of the palm oil does not impact our margin to a large extent. But having said that, Oil Palm is nearly 70% of the business that we do. It’s highly profitable for us.
We have the largest brand, Gold in the country. It is one of the most recognized brand, which consistently earns a premium of more than INR1,200 a tonne. We make a very solid margin on our oil palm plantation business and we do a very good job on the supply-chain side. So really that — so my comment was in that light, that drop of — but what we do a lot more margin is in our branded business, for example, on the Soya and Sunfar side, our margin profile typically is about INR2,500 to INR3,500 a ton, which gives us a lot more leg-up to that extent.
So if there is a significant drop-in that, that also hurts. But in absolute terms, palm continues to be one of our main stage of the margin profile that we do in the business.
Ajay Thakur
Understand. Sir, what I was trying to understand is that if palm is kind of constituting 70% of the oil business, will the contribution in terms of EBITDA would also be the single quantum on an average basis like 70-odd percent or would it be like more like around 50-odd percent to the edible oil market?
Sanjeev Kumar Asthana
So that typically is no reflection at all. So what happens is that the movement between the interplay of the — each of these oils is reasonably dynamic. So it typically would not be reflective of 70% as a — it would not be — percentages would not be matching at all. It would typically be at a variation. But I would say that 50% of the income that we divide would definitely in all years would be from palm oil category for us the percentage — the percentage may vary a bit in couple here or there.
But overall, about 50% income, we would always derive from palm oil and the balance part of the income accrues from the other oils. And so we don’t many of times talk about the mustard oil and sesame oil and other businesses, but there is a fairly robust portfolio that we have. So it’s almost 50-50 between the two, but volume-wise, palm would always be palm oil would be about 70% of what we do.
Ajay Thakur
Understood. Sir, also wanted to understand, generally during the discretionary palm oil trend, would we be kind of having a better margin scenario in the palm oil business or generally during the inflation — inflationary scenario, is the margins better for the palm oil business for us.
Sanjeev Kumar Asthana
No, so the two margins are driven for us by two factors. One is, of course, the supply-chain capability that we built-in. Second, which is very crucial is that consistent VAN equity that Richie Gold has built over the years and I was mentioning that typically between about 1.5% margin that we generate consistently on account of the brand in the marketplace. And that is a very strong point with the company has.
And if we add the supply-chain efficiency, the purchase efficiency that we bring in and add close to 1.5% or 2% to that, then the palm oil is a very big solid part of our portfolio, which is driving this growth. So it is a combination of the brand marketing as well as the supply-chain efficiency, which is driving the slowness. So if there is a natural inflation in the palm oil prices at the purchase level in the international prices, it tends to benefit us.
If there’s a dramatic drop, it would not benefit us, but most of it gets neutralized on account of the premium that we draw from the marketplace on account of the brand marketing that we do. The brand premium that we get.
Ajay Thakur
Understood. So also wanted to understand a bit more on our oral care market-share. How has the trend been shaping in Terms of the Oral Care share for the last quarter and for the year FY ’25? If I’m light on that front could help?
Sanjeev Kumar Asthana
Sure. Yeah. So Oral Care, this is the first full-quarter, of course that we saw, but knowing the background on the overall oral care, I was just answering actually earlier also on the same part. The overall category that we are seeing is typically growth is about 5% to 6% year-on-year. We are pretty confident of achieving 10% growth in the oral care, largely driven on two-levels. One is by the product innovation and the much deeper segmentation that we have to drive-in the oral care categories.
So that there is a reasonable confidence that we should be able to achieve it. So there is a core that we have and on the oral care that has been built over the — over the brand equity that they — that country enjoys. I think now riding on-top of that in terms of bringing in new customers who can start to relate to Dankanti, the new variants, getting a completely entire segment of population, which would like to try different variation of Dankanti.
I think that is where the big effort of the company is making. And we got in the brand ambassadors in the form of both Bati and Tiger Shop. We continue to sort of expand distribution in different geographies. So there is a — so part of the growth will be a secular growth that we have seen in the Compti category itself as a natural and the balance part of the growth will come through largely by the new launches and the segmentation that we’re trying to drive with — so really position the products to particular segments that we should drive the growth for us?
Ajay Thakur
Thanks. Thanks. That’s about it. Thanks for the question.
Operator
Thank you. The next question comes from the line of Nedik from NV Alpha Fund. Please go-ahead.
Naitik Mutha
Hi, sir. Thanks for taking the question. Sir. Can you please give me the breakup of sales for your whole FMCG and for HPC for 2025, you know the breakup of sales in staples ethnics honey and then in HPC.
Sanjeev Kumar Asthana
So in terms of the breakup is that the consumer in the food for this year. We have done 3,756 crores and in the ethnic foods we did INR2,451 crores. And for and Jee, specially. So he — I don’t have that specific number right now. We did about INR1,100 crores of revenue for the full-year on the side and honey Namo, I can share that with you.
Naitik Mutha
Sure. And same for HPCs, home and personal care.
Sanjeev Kumar Asthana
So home and personal care of revenues that we have right now, I can share that because I can just share with you only for 1/4. And so revenue that for the five months I’m sharing now. For dental Care, we did about INR625 crores. We did about INR280 crores. For. For Home Care, we did about INR145 crores. For hair-care, we did about INR95 crores and the others form about INR10 crores. So total about INR1,150 crores in five months.
Naitik Mutha
Right. Around crores for five months. So sir, my question is last year when we merged — when we spoke about acquiring this business, the top-line was close to INR27 crore INR2,800 crores, right. So compared to last year, is this top-line lower-right now? Yes. So I mentioned that this integration process is time-consuming.
Sanjeev Kumar Asthana
I think from this quarter onwards, you will see more consistency in the revenues. We have stated that right in the beginning also that even the first couple of months are going to be time of integration. So for example, getting the full teams aligned, the distribution networks done, getting all the — all the distribution structure in-place, integrating them to both through on the SAP systems, et-cetera, has taken its time.
But this quarter onward, we expect this operation to completely stabilize. Integration is now done and we should get on to the growth path of 15% from the time of when we acquired the business, we should achieve that 15% growth. It will — sequentially it will start building up. But for the year, our conviction is that we should get the 15% growth rate that we had stated.
Naitik Mutha
Right, sir. Just one clarification, the 15% you’re talking about would be on a base of 25 or on 2,800,
Sanjeev Kumar Asthana
27 94, if I remember my number right at that.
Naitik Mutha
Yes, sure. Got it. That’s it from my second. Thank you.
Sanjeev Kumar Asthana
Somebody wants to — hello, hello. Somebody wants to know the figure of sale, I think., I think you mentioned 1,100 also we got the number, INR1286 crores was the resale. We only add the number now, it is INR324 crores. We are 324.
Naitik Mutha
Got it thank you. For the full-year. Yes. Thank you.
Operator
The next question comes from the line of Vishal Gutka from ASK Investment Managers. Please go-ahead.
Vishal Gutka
I just wanted to understand your thoughts on palm oil business. If you told that it is lower-margin versus the other two businesses. Just wanted to understand your thought why it is so, why it is like that? And second question on the implantation business. You told you did around INR12 crores EBITDA for the quarter and for the full-year number was around INR203 crores. So there seems to be a big variance in terms of quarterly and annual performance. Can you please explain the same?
Sanjeev Kumar Asthana
No, no, it’s just a regular seasonality part of it. So typically what happens is a seasonal impact of ours, but this year now there is a peak season, which is going on. So this quarter, the numbers will entirely change in the Q1 of this year. So it’s just a seasonal variation it is there. So that’s why this number was there.
Vishal Gutka
First up is heavy. First up is heavy.
Sanjeev Kumar Asthana
Yeah. So when there is — so how it works is that when there is a harvest going on, right? At that moment, what happens is that you’re doing a lot more processing, there’s a lot more operation going on, a lot more business goes on. And then it tapers off towards the — towards in the subsequent months in the Q3 and Q4 typically. That’s why you will see some bit of tapering off and there’s some cost allocations and otherwise which is there. So that’s why typically this variation will see. But that evens out that part of the annual number will pretty much stay stable at 16% to 18% EBITDA that we’ll get into.
Vishal Gutka
Got it. Got it. And then on the palm oil business, why at a lower-margin versus another two oils? And we can explain?
Sanjeev Kumar Asthana
Yeah. So typically what happens that palm oil is seen more as a commodity sort of a play and the business is done largely through the institutional players. But there’s a big segment in the palm oil, which also is in the branded farm, especially in South India, where there is a — there is a recognition of the brands. There is a — there is a — the consumer is asking in a particular brand the palmer because that is used in the household cooking in large whale for out.
So that is why the typically tends to be much more — the margins tend to drag a little in the consumer, especially if you look at the front-end retail sales level, where we tend to have seen the lower margins in the palm oil compared to show and sand, where the consumer’s brand recall the outlets from where it gets sold or the consumption pattern that was demonstrated that the SEC, A and B-Class customers are much more aligned towards soya, sun, mustard, cold, like sesame, et-cetera compared to palm.
So that’s why typically at the front-end, you will see that the palm oil margins typically will tend to be lower at the sales level. But on the supply-chain side, if the efficiencies, etc., typically good. So the run-rate that we’ve typically seen is that out of 70% volume, our 50% margin, some years it could vary as well, but typically 50% margins would accrue order farm oil, which is a combination of the premium that we get on Gold as well as the value that we derive on our supply-chain efficiencies.
Vishal Gutka
Got it, sir. Thank you, sir. Just one short question on this EBITDA per ton some about 1,1500 kind of number for four year it was in the range of INR25 to INR3,000 number.
Sanjeev Kumar Asthana
So for the pharma so yeah, so I’ll explain that. So the — what we do as a an as a typical estimation that the brand premium that we derive is that number that I spoke about is that typically about INR1,000 to INR1,500 rupees a ton we derive on the palm oil, about 2,500 to 3,000 we get on soya oil and about 3.5 to 4,000 is typically what we target is for the sun oil. And for mustard and coal, et-cetera, is significantly higher.
So typically that’s how that’s for the front-end margins. Now at the back-end, when we’re talking of the building up supply chains, the origination margins, etc., then they vary because of the movement in the prices, et-cetera. So the idea is that we evaluate ourselves on on twin parameters. One is the efficiency of supply-chain that we should be consistently better on that base market prices on the bulk side because of the efficiencies that we derive On account of risk management, supply-chain and the origination. And on the market end, on the distribution side, we should be able to consistently on our brand premium and margin. So the two are totally distinct sort of strategies that we follow and that is why I mentioned about the higher margins in other oils and the farm typically would consistent margin. And it’s a very critical to buy core products for the company.
Vishal Gutka
Got it. Great, sir. Wishing you all the best for a new year. Thank you.
Sanjeev Kumar Asthana
Thank you.
Operator
Thank you. The next question is from the line of from Motilal Oswal. Please go-ahead.
Unidentified Participant
Hi, Kumar, good morning. Thanks for the opportunity. Sir, can you provide this 25 lakh ton what we have sold-in edible oil? What is the broad volume breakup of feed segment?.
Kumar Rajesh
Yeah, I think the overall quantity that we have done is 23.64 lakh metric tons 2.36 million tons. Out of this 10.5 lakh tonnes is palm oil, 5.4 lakh tonnes is oil 60,000 tonnes is mastard oil 1.4 lakh tonnes is sulfur oil and the balance would be the other oils.
Unidentified Participant
Okay. And on the front-end, broad breakup of brand side, and other segment if you have already?.
Kumar Rajesh
So on the — so I told you, 75% of the volume that I’ve told you is gets sold pretty much across the category. So, for example, 100% would be branded. There is no bulk sale. Soybean, typically our sales would be almost about 80% to 85% entirely in the branded category. Palm oil, as I mentioned, will be close to about 70% typically would be in the branded form and the balance would be in the form of the bulk institutional sales and otherwise that we do and rest of the oils like mustard and others are 100% branded form.
Unidentified Participant
So because it’s just understanding, what would be the total sale for FY ’25 for because I think we have seen a lot of ad spends and lot of activities around them brand.
Kumar Rajesh
Yeah. So for soybean oil, Mahakosh, as I mentioned, you know, close to about 75% would be the branded. So it would be about 4 lakh tons plus is what we would have done in the branded forms.
Unidentified Participant
Okay. Wonderful. My second question on OPT, 45% is the number which you have shared in terms of seven to 25 years aging. So I was just more curious if this revenue is going to be a positive momentum in terms of margin and growth. What is the number which you are expecting in terms of maybe in terms of volume value contribution for FY ’26?
Kumar Rajesh
Sorry, I didn’t get your question right.
Unidentified Participant
So in the presentation, you said that 45% of our oil pump plantation is in the range — in the age of seven to 25 years.
Sanjeev Kumar Asthana
Yes.
Unidentified Participant
Yeah. So I was just expecting what kind of output we can expect from this in FY ’26. And maybe it’s volume or value, whatever you can share.
Sanjeev Kumar Asthana
Yeah. So in the Palm oil plantation business, I had mentioned that we did a revenue this year of INR1,263 crores, which itself was a growth over INR951 crores that we’ve done the previous year. Part of that came through — came through the volume growth and the balance came from the price inflation that we saw. So each year, we are expecting that this revenue to grow close to about 10% year-on-year as the more plantations come in.
And the momentum will pick-up from in fiscal ’26, ’27, then we expect to keep the pickup in the plantation that we — the driver that we took three years back, some of that should start coming on-stream. In ’27, ’28 onwards, we should see minimum 25% growth year-on-year on the oil complantation side.
Unidentified Participant
Okay. That’s really helpful. Last question on the distribution front, you mentioned about 2 million is the coverage which we have so when you look at this 2 million is the total or it’s direct distribution?
Sanjeev Kumar Asthana
Is a direct distribution and our estimation is that to more than 100% of this, one is to one or maybe even 1.25 times of this should be indirect distribution. So all the sort of work, so currently we — our products are available at more than 4 million retail outlets, 2 million directly, which is tracked by the company. And that the HPC business and the expansion that we are seeing should continue to see a substantial uptick.
Unidentified Participant
Okay. Now the reason why I’m asking because there is a variation which we have seen in terms of, foods and versus personal care and HPC business, which has grown 15%. So I’m more curious if distribution is the angle which is driving HPC, which are the pockets where we are seeing the diversion for the food versus or HPC in terms of quarter which has gone by? And some color on the demand situation at this point.
Sanjeev Kumar Asthana
So two sides, which is for example that in terms of reach on the food side, we typically see the strength profiling and in terms of where the brand equity is the highest, so the distribution reach now is way better that our markets are northern part of the country the central part of the country Western India are the leaders in terms of where we currently stand we do well. In South, we are expanding our distribution reach to better levels.
There are certain product categories which typically tend to be less appealing in South, but that we are correcting the course, as I mentioned about the segmentation and distribution that we are working towards. And similarly, in East and Northeast, we need to do some more work. So broadly, the idea is that progressively, we should take our direct distribution reach to-4 million. And so growth will come from two areas, as we’ve repeatedly mentioned.
One is that expanding our distribution, obviously, there’s a lot of headroom for growth that we have. And second is, as the markets are tending to divide themselves in a very — the much sharper focus in terms of which segment is consuming what product categories. So that work is going on quite seriously that we want to drive much more customized, much more oriented focused product launches to achieve this growth of 15% that we set for assets in the HPC.
Unidentified Participant
And in terms of demand, any reasonable variation?
Operator
I may request you to rejoin the question.
Unidentified Participant
No, I’m done. I mean, I asked the question. I’m just expecting the answer.
Sanjeev Kumar Asthana
Yes. So just a quick one. Yeah, so on the demand-side, what we’re seeing, there is a reasonable variation clearly and it’s pretty significant actually. So both in terms of the — so for example, in the in the oral care. So the natural category, while very popular, we see that North, central and West is much more larger. And similarly, what we see in South is that it’s lesser. So there we are launching different kinds of products.
So likewise, in the HPC Home Care, we find that consumers have very different sort of choices when it comes to deciding as to what kind of products they’re consuming and what brand. So that is being addressed and we realize that one of the core things about complexity of India is very much that addressing the markets specifically will make a big difference. So that effort both through data analytics that we have in terms of the market research that we’re doing,
The ad campaigns that we’ve followed and researching on that, I think we should be able to address wherever the gaps are there, we should be able to address it efficiently.
Unidentified Participant
Thank you. Thank you and all the best.
Sanjeev Kumar Asthana
Thank you.
Operator
Thank you. Thank you. The next question is from the line of Abhijit from Antique Stock Broking. Please go-ahead.
Abhijeet
Hi, sir. Congrats on a nice set of numbers.
Sanjeev Kumar Asthana
Thanks.
Abhijeet
So going ahead, I was just looking at the construct of margins. So say in edible oil, when I look between edible oil to food products, I mean, would it be right to say that food products margins got impacted because edible oil margins were higher because there was inflation in edible oil, which helped reduce oil margins. And on the other side, food margins got impacted. And so would there be a — will there be an interplay and how do we see it?
Because you know going up, your food margins on a annual basis has actually harped. So I mean one — not halved, but gone down by about close to 489 bps. So going ahead, if we have to look at improvement in margins, so what — is there any interplay because you know vegetable oil prices have been higher and it has been impacting food margins across-the-board, not only your company, other players have also got impacted by the higher vegetable oil prices and also wheat prices have been higher.
So there has been a — you know, from other companies, what we understand is there is a moderation — expected moderation in wheat prices as well as there is a expected moderation in vegetable oil prices. So how that — what do you expect? How should that play-out for you next year and How can you come back to that better margin? Because food margins, food absolute EBITDA is also very important. It is actually if they do well and you are able to re sort of not retain but at least be closer to your previous margins in Edible Oil, you should see a better margin profile and earnings EBITDA growth profile.
Sanjeev Kumar Asthana
So yeah. So this year is absolute pretty exceptional. I think very good question because I was hoping that somebody is going to ask that. I think three things have largely been responsible for the change in the margin construct. One is very clearly the high commodity prices. So oil, for example, this year was almost elevated between 30% and 40% almost through the year. So the sugar prices were up between 2% to 5%. The wheat prices were up 12% last year.
Similarly, we saw — we saw the wholesale level, the commodity inflation, the paddy prices were up between 5% to 8% consistently. So — and all these are very core products, which typically go as a raw-material into manufacturing of manufacturing of the — any other FMCG food businesses. So they tended to impact quite a bit and which is where we saw this drop-in the margins. Like us, so it impacts, for example, what all it directly impacts things like Ata and rice and the pharma itself,
The demand-side, it impacts directly our business a lot. So all those have been part of the challenge here that we faced. And so this year, it’s — I’m expecting this to taper off. So this would have an interplay between the margin as you rightly observed. And I believe that we should be mindful of this factor, which typically tends to have some play. And my only suggestion would be that — and the guidance that we have internally within the company, I’m seeing a, that the food sort of fast commodity, the government is working extra hard to ensure that the — even the prices are tech stable.
International prices we have very little control over. So government has a duty sort of at its control to control that. So broadly, but this interplay will remain. Now coming to the point of you know that where it is going to less likely impact and how we should be addressing this the price inflation which has an impact on the margin, I think this is something which is which the company is very seat of. So we are tightening the areas where we need to control these prices.
But this impact, we cannot deny that many of the food product countries will typically tend to face this a problem on the food inflation side if suddenly we see a big spike on the commodity prices. So it does have impact both on the sales as well as on the margins.
Abhijeet
Okay. So again, so essentially, we have to just look at the blended margin between oils and food products sort of —
Sanjeev Kumar Asthana
But I would say that oil, I would say this is some correction that don’t look at oil alone. It’s a basket of commodity prices, which has an impact on overall on the food portfolio. So big, for example, depends on sugar and fat, which is palm oil and wheat prices. And likewise, most of the products which are directly for wheat flower example for directly linked to the to the wheat prices. And typically the ability to pass-on the product, the commodity inflation onto the consumers in all cases is not there.
So margins get to squeeze in that. So it impacts both the demand as well as the — so either consumer tends to move to a lower bands or cheaper prices or they tend to sacrifice in the margin to continue focusing on the volumes. So that is the interplay which will always have an impact, but we are pretty confident that going between 8% to 10% margin construct that we’ve always maintained in the food business overall, we’ll do that.
This year also we did about 8.35% margin overall in the foods portfolio,. So we are pretty much in the range of what we projected. But yes, you’re right that it has dropped from 13.18% last year to 8.35%. But this would be more a temporary sales. We are expecting this to be, be sell us to tide over it.
Abhijeet
So structurally during FY ’26, you know, giving a — I mean looking at the moderation in inflection in inflation cross input prices, you should be — you should benefit on the food product side and edible oil, the margins may not be as high as you know for FY ’25, but it still would not really see a substantial decline. And what is important there is what should — what is the kind of volume growth that you expect in Edible oil during — I mean in FY ’26.
Kumar Rajesh
So to answer the — it’s very important that from a guidance perspective, we are reasonably certain that between edible Oil, foods and HPC, we should meet all our objectives, what you have said. So between 2% and 4% margin on the edible oil, more at the higher-end of the of the margin construct. Food margins, 8% to 10%, we should pretty much definitely need. And likewise, for the HPC of 16% to 18% is where we should see consistent growth that should come in.
So this is overall conviction that we should be able to do that. On edible oil though, the growth that we see in the volumes is typically between 2% and 3% and that we are pretty confident of getting it back this year. So our palm oil was a very typical year what that we saw. That would — that pretty much the primal prices stabilized, so I’m not expecting any slippage on the volume numbers.
Abhijeet
Understood. Thanks. Thanks a lot.
Operator
Thank you. Ladies and gentlemen, we will take that as the last question. I would now like to hand the conference over to Mr Sanjeev Asthana for closing comments. Mr Asthana.
Sanjeev Kumar Asthana
So with this, I thanks everyone for having participated quite actively. I’d like to sort of conclude the call and with this and look-forward to your continued support and guidance. Thank you so much. Thank you.
Kumar Rajesh
Thank you.
Operator
Thank you. On behalf of Foods Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.