Parag Milk Foods surges as Q2 adjusted PAT rises 42% YoY
Sequentially, net profit increased 90.5% from Rs 22.05 crore in Q1 FY27.
Revenue from operations rose 23.1% year on year to Rs 1,240.89 crore in Q2 FY27 from Rs 1,007.95 crore. Sequentially, revenue increased 31.4% from Rs 944.57 crore in Q1 FY27. The company recorded volume growth of 12% during the quarter.
Gross profit increased 24% year on year to Rs 323 crore. Gross profit margin improved to 26% from 25.8% in Q2 FY26.
EBITDA, excluding the one-off gain in the year-ago period, increased 37.2% year on year to Rs 101 crore from Rs 73 crore. EBITDA margin expanded to 8.1% from 7.3%.
Profit before tax stood at Rs 55.17 crore in Q2 FY27, up 88.4% vs previous quarter and 9.3% vs year-ago quarter. Excluding the one-off gain in the year-ago period, PBT increased 59.8% year on year.
Total expenses increased 21.5% year on year to Rs 1,161.03 crore from Rs 955.46 crore. Raw material consumption rose 30.7% to Rs 1,034.18 crore, while employee expenses increased 9.5% to Rs 46.75 crore. Interest costs rose 32.7% to Rs 26.58 crore, while depreciation increased marginally to Rs 18.85 crore.
The company's flagship categories, comprising ghee, cheese, paneer and curd, contributed 63% of revenue at Rs 778 crore, recording value growth of 20% and volume growth of 7%. Paneer registered its highest-ever quarterly volumes, while the HoReCa cheese business recorded double-digit growth.
The New Age business, comprising Pride of Cows and Avvatar, reported revenue of Rs 154 crore, up 71% year on year, and contributed 12% of overall revenue compared with 9% a year earlier.
The board approved an investment of around Rs 100 crore to increase paneer capacity from 20 tonnes per day to 80 tonnes per day at its Manchar and Palamaner facilities. Commissioning is expected by June 2027. The company also plans to double cheese capacity from 60 tonnes per day to 120 tonnes per day through an investment of Rs 105 crore, with completion targeted in FY28.
The board also approved a scheme to amalgamate Bhagyalaxmi Dairy Farms, a wholly owned subsidiary, with the company, subject to requisite approvals.
Executive director Akshali Shah said the company delivered 23% revenue growth, supported by 12% volume growth. She said flagship categories and the New Age business recorded healthy growth, while gross profit increased 24% despite elevated milk costs.
Parag Milk Foods is a dairy-focused FMCG company established in 1992. Its product portfolio includes ghee, curd, paneer, cheese, milk and whey protein products. The company markets its products under brands such as Gowardhan, Go, Pride of Cows and Avvatar.
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