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Parag Milk Foods Q1 PAT rises 1% YoY to Rs 28 cr

22-Jul-25 10:53 Hrs IST

Revenue from operation rose by 12.34% year-over-year (YoY) to Rs 851.52 crore during the period under review.

Earnings before interest, tax, depreciation, and amortization (EBITDA) grew 6% year-on-year to Rs 66 crore in Q1 FY26, up from Rs 62 crore in Q1 FY25. However, the EBITDA margin declined slightly to 7.7% in Q1 FY26 from 8.1% in the same quarter of the previous year.

Profit before tax in Q1 FY26 stood at Rs 29.18 crore, up by 8.83% from Rs 26.81 crore posted in Q1 FY25.

Parag Milk highlighted that the business achieved 5% volume growth YoY in Q1, driven by robust performance in core categories like ghee, cheese, and paneer, which together witnessed a 9% volume growth. The company stated that its flagship product Gowardhan Ghee holds a 22% market share in the branded cow ghee segment, while Go Cheese commands a 35% share in the cheese category.

The company also navigated volatility in raw material prices during the quarter. Average milk prices rose 18% YoY to Rs 37 per liter but remained stable quarter-on-quarter (QoQ). The company handled an average of 16.5 lakh liters of milk per day, a 10% increase QoQ. Despite fluctuations in milk costs, the company has been able to pass on the commodity prices with EBITDA growth of 6% YoY.

Gross profit margins remained steady at 27.4% in Q1 FY26 compared to 27.5% in Q1 FY25 and showed sequential improvement from 25.1% in Q4 FY25. This was driven by an improved product mix and the ability of the company's brands to command a price premium over competitors.

The company's new-age businesses, including Pride of Cows and Avvatar, continued their momentum, recording a robust 57% value growth YoY and now constituting 9% of the overall business compared to 6% last year. The Avvatar brand grew eightfold over the past three first quarters, aided by positive response to its recently launched protein wafer bar. Pride of Cows achieved a remarkable 36% value growth in the premium dairy segment, supported by new product launches and expanded reach through quick commerce platforms. The brand's 'What's the Source?' campaign focused on milk authenticity and traceability, reinforcing consumer trust and strengthening its leadership in the premium dairy category.

Parag Milk Foods also undertook a comprehensive 360-degree marketing strategy to strengthen brand visibility. The company engaged regional audiences through popular television shows like Sony Marathi's Maharashtrachi Hasya Jatra and gained national attention during the Zee Cine Awards with campaigns emphasizing the 'cheesy quotient' among celebrities. Digital marketing efforts, including influencer collaborations on social media, further amplified its reach, while in-shop branding across general trade and modern trade outlets helped garner notable eyeballs among consumers across the country.

Devendra Shah, Chairman, PMFL, said, 'Q1FY26 has set a promising tone for PMFL as we begin the new financial year. Delivering our highest-ever first-quarter revenue reflects our strategic focus and disciplined execution. Our value-added product portfolio and purpose-led marketing are deepening consumer trust and supporting long-term value creation.

At the core of our success lies a deep commitment to backward and forward integration. Our strong relationships with farmers empower us to maintain timely procurement and high quality of milk. We have handled an average of around 16.5 lakh liters of milk per day during Q1, which is 10% higher over the immediate last quarter. Our brands are not only rooted in tradition'celebrating the authenticity of Indian dairy'but are also evolving to meet the aspirations of health-conscious households. We continue to deliver nutrition-rich, trustworthy products across the globe.

As the festive season approaches, we are energized by the growing momentum. Festivities in India are deeply cultural and emotionally rooted ' and so are we. Our growing portfolio of value-added products, including traditional sweets, ghee, and cheese, is well-positioned to meet the festive demand, powered by consumer trust and brand love.'

Parag Milk Foods is the largest private dairy FMCG company with a pan-India presence. The company's manufacturing facilities with in-house technology which are strategically located at Manchar in Maharashtra and Palamaner in Andhra Pradesh.

The scrip dropped 4.93% to Rs 241.10 on the BSE.