Shares of Baba Ramdev’s company, Patanjali Foods, grabbed investors’ attention on Wednesday as they witnessed a notable surge. The stock climbed by 2% during intraday trading, reaching a high of ₹1,759. The primary catalyst behind this rise is a strategic investment move by Life Insurance Corporation of India (LIC). LIC has significantly increased its stake in Patanjali Foods through open market transactions, boosting its total holding to 7.06% from the earlier level of around 5%.
LIC Acquires 73 Lakh Shares
In a recent regulatory filing, LIC disclosed that it has acquired approximately 73 lakh shares of Patanjali Foods. This transaction took place between November 25, 2024, and March 4, 2025. As of the December quarter, Patanjali Foods’ shareholding pattern showed that promoters held a dominant 69.95% stake, while Foreign Institutional Investors (FII) and Domestic Institutional Investors (DII) controlled 13.3% and 6.3%, respectively. The remaining 10.3% of shares were held by retail and public investors. Patanjali Foods is primarily engaged in oilseed processing and edible oil refinement, making it a key player in the FMCG sector.
Company Background and Growth
Patanjali Foods, previously known as Ruchi Soya Industries, was acquired by Baba Ramdev-led Patanjali Ayurveda in 2019. Following the acquisition, the company underwent a rebranding and was officially relisted on the stock market in January 2020. Since then, it has grown steadily, expanding its footprint in the edible oil and FMCG market.
Strong December Quarter Performance
Patanjali Foods showcased an impressive financial performance for the December quarter of FY25. The company reported a 71% surge in net profit, reaching ₹371 crore compared to ₹217 crore in the same quarter of the previous year. Additionally, the company’s revenue saw a 15% increase, climbing to ₹9,103 crore from ₹7,911 crore in Q3 FY24. Operating profit also witnessed substantial growth, rising by 57% year-on-year to ₹541 crore. On a quarter-on-quarter basis, the company’s operating profit grew by 20.5%. The EBITDA margin improved significantly to 6%, marking an increase of 200 basis points compared to 7% in Q3 FY24.
With LIC’s increased stake and strong financial results, Patanjali Foods remains a promising player in the market, garnering the interest of both institutional and retail investors.
