Parag Milk Foods posts PAT of Rs 22 crore for Q1 FY27; clocks EBITDA margin of 7.4%

The company has recorded an overall volume growth of 3% for the period under review. The modest growth was mainly due to lower volumes in Flagship categories while the New Age portfolio has demonstrated strong double-digit growth of 59%.

The Flagship categories, which comprised of ghee, cheese, paneer and dahi, contributed 61% of total revenue. Despite a 2% YoY decline in volumes, largely attributable to transient slowdown in specific channels in the current period, the Flagship categories delivered value growth of 10%.

The company's New Age Business, comprising Pride of Cows and Avvatar, continued its strong growth trajectory with revenue of Rs 118 crore, recording a robust 59% YoY growth. The segment contribution has increased to 13% of overall turnover.

The company said that the milk prices rose by 13% YoY; however, the company successfully mitigated the impact through measured price increases and a better product portfolio. Consequently, gross margin was sustained at 27.3% in Q1FY27 as against 27.4% in Q1Y26.

While EBITDA improved by 6% year-on-year (YoY) to Rs 70 crore, EBITDA margin contracted by 30 basis points YoY to 7.4% in the June'26 quarter.

Profit before tax for Q1 FY27 stood at Rs 29 crore, up 0.4% YoY.

Akshali Shah, executive director, PMFL, said: During the quarter, our performance was impacted by sustained inflation in milk procurement prices and elevated input costs across the dairy value chain.

Despite these headwinds, we delivered steady growth, reflecting the resilience of our business model, the strength of our brands, and the continued consumer trust.

Looking ahead, we are encouraged by the prospects of improved milk availability supported by a favourable monsoon, along with the seasonal demand uplift typically witnessed during the festive period.

Parag Milk Foods is the largest private dairy FMCG company with a pan-India presence. The company offers traditional products like ghee, dahi, paneer, liquid milk, etc. under brand Gowardhan?, and products like cheese, UHT milk, buttermilk, lassi, flavoured milk shakes, etc. under the brand name Go?. Pride of Cows?, the flagship brand of the company based on proposition of farm to home ? single origin concept targeting customers seeking premium quality dairy products. The company is also present in Whey Protein based sports nutrition under the brand Avvatar.

The scrip shed 0.80% to currently trade at Rs 223.40 on the BSE.

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