MUMBAI: Parag Milk Foods reported a 20% year-on-year decline in consolidated profit after tax (PAT) to ₹22 crore for the first quarter of FY27, despite revenue rising 11% to ₹945 crore.
The company’s overall volumes increased 3% YoY, while its New Age portfolio recorded strong double-digit growth, partly offsetting weaker volumes in its traditional product categories.
New Age portfolio grows 59%
The company’s New Age Business, comprising Pride of Cows and Avvatar, generated revenue of ₹118 crore, registering a 59% YoY increase. The segment’s contribution to overall turnover increased to 13%.
In contrast, the company’s Flagship categories — ghee, cheese, paneer and dahi — accounted for 61% of total revenue. Volumes in these categories declined 2%, but value growth remained strong at 10%.
Milk inflation pressures margins
Milk procurement prices increased 13% YoY, along with broader input-cost pressures across the dairy value chain. The company said measured price increases and a stronger product mix helped offset much of the cost inflation.
Gross margin remained broadly stable at 27.3% in Q1 FY27, compared with 27.4% a year earlier.
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EBITDA increased 6% YoY to ₹70 crore, although the EBITDA margin declined by 30 basis points to 7.4%.
Profit before tax stood at ₹29 crore, marginally higher than the previous year.
Q1 FY27 numbers
| Metric | Q1 FY27 | YoY change |
|---|---|---|
| Revenue | ₹945 crore | +11% |
| PAT | ₹22 crore | -20% |
| EBITDA | ₹70 crore | +6% |
| EBITDA Margin | 7.4% | -30 bps |
| Overall Volume | — | +3% |
| New Age Business Revenue | ₹118 crore | +59% |
| Flagship Category Volume | — | -2% |
| Flagship Category Value | — | +10% |
| Milk Procurement Cost | — | +13% |
Outlook
Parag Milk Foods said it expects improved milk availability following a favourable monsoon and stronger seasonal demand during the upcoming festive period to support business performance.
The results highlight a key challenge facing India’s dairy industry: strong consumer demand and value-added product growth are being accompanied by persistent milk procurement and input-cost inflation.
For dairy companies, improving product mix, expanding value-added categories and passing through input-cost increases without hurting volumes will remain critical for protecting margins in FY27.
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