Strong summer demand, better product mix and lower finance costs drive sharp improvement in profitability
Chennai: Tamil Nadu-based value-added dairy company Milky Mist Dairy Food Ltd reported a sharp increase in profitability for the first quarter of FY27, with consolidated profit after tax (PAT) rising nearly ten-fold year-on-year to ₹64.68 crore, compared with ₹6.53 crore in Q1FY26.
Revenue from operations increased 43.6% to ₹973.45 crore, from ₹678.09 crore a year earlier, in the company’s first quarterly financial results following its listing on Indian stock exchanges in August 2026.
The strong performance was supported by robust summer demand, volume growth, an improved product mix and pricing gains across categories. Lower finance costs also contributed to the improvement in profitability, while favourable tax adjustments of around ₹9.7 crore provided an additional boost to the quarter’s PAT.
EBITDA grows faster than revenue
Milky Mist’s operating performance strengthened significantly during the quarter.
Gross profit increased 56.1% to ₹333.02 crore, compared with ₹213.34 crore in the corresponding quarter last year. Gross margin consequently improved to 34.21% from 31.46%.
EBITDA grew even faster, rising 74.5% to ₹144.89 crore, while the EBITDA margin expanded to 14.88% from 12.24%.
| Financial Metric | Q1FY27 | Q1FY26 | YoY Growth |
|---|---|---|---|
| Revenue from Operations | ₹973.45 crore | ₹678.09 crore | 43.6% |
| Gross Profit | ₹333.02 crore | ₹213.34 crore | 56.1% |
| EBITDA | ₹144.89 crore | ₹83.02 crore | 74.5% |
| Profit After Tax | ₹64.68 crore | ₹6.53 crore | 890% |
The numbers indicate significant operating leverage: revenue grew 43.6%, while EBITDA expanded by 74.5%. PAT margin also increased substantially from around 0.96% to 6.64%.
Paneer remains the star product
Despite strong growth across several categories, paneer continues to remain one of Milky Mist’s key growth engines.
Paneer revenue increased 34% to ₹248.29 crore, while cheese revenue grew 38% to ₹137.12 crore.
The company’s summer-focused categories performed particularly strongly. Yogurt revenue surged 153% to ₹84.52 crore, while ice cream sales increased 60% to ₹102.25 crore. Curd revenue also grew 27% year-on-year.
Management expects paneer to remain a key contributor to growth while continuing to expand its portfolio of value-added dairy products.
Capacity expansion remains a priority
Milky Mist is simultaneously expanding manufacturing capacity to support its growth strategy.
The company increased its paneer capacity from 72 MT/day to 192 MT/day in June 2025. It has also expanded its focus on cheddar cheese, with capacity planned to increase substantially.
During Q1FY27, the company commissioned a new cheddar cheese plant with an installed capacity of 120 MT/day, strengthening its ability to cater to rising demand for value-added dairy products.
The company had raised around ₹1,553 crore through its IPO, with a significant portion earmarked for debt repayment, manufacturing expansion and general corporate purposes. Around ₹496.9 crore was allocated towards repayment of borrowings and ₹469.2 crore towards expansion of manufacturing facilities.
Management targets 33–35% growth
Dr. K. Rathnam, Wholetime Director and Chief Executive Officer of Milky Mist, attributed the improvement in gross profitability to higher volumes, a better product mix and pricing ability.
He also highlighted strong demand for the company’s summer portfolio, particularly ice cream, curd and yogurt, as the extended summer season supported consumption across southern India.
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The company expects to maintain annual growth of around 33–35% in FY27, broadly in line with its growth trajectory over the past four to five financial years.
Management said the strategy will focus on expanding the product portfolio, maintaining operating discipline and investing in manufacturing and distribution capabilities.
Expanding pan-India footprint
Milky Mist currently has a presence across 22 states and five Union Territories.
Tamil Nadu remains its largest market, contributing approximately 26% of net sales, followed by Karnataka at 24%.
The company is also developing a diversified distribution structure. General trade contributes around 33% of sales, while modern trade and e-commerce account for approximately 21% and 19%, respectively.
What Milky Mist’s Q1 performance signals
Milky Mist’s Q1FY27 performance highlights a broader shift in India’s dairy market towards value-added products, rather than dependence solely on liquid milk.
The combination of strong paneer demand, rapid growth in yogurt and ice cream, expanding cheese capacity and a wider distribution network gives the company multiple avenues for growth.
However, the near-10-fold PAT growth should be interpreted carefully because the comparison is against a relatively low base, and the quarter also benefited from lower finance costs and favourable tax adjustments.
The more important indicators for investors and the dairy industry will be whether Milky Mist can sustain its revenue growth, EBITDA margin expansion and volume growth as it scales its manufacturing capacity.
For FY27, the company’s stated target of 33–35% growth puts the focus firmly on execution—particularly in paneer, cheese and other value-added dairy categories.
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