Parag Milk: Q2 Profit Jumps 56% as New-Age Business Grows

Parag Milk Foods Ltd, one of India’s prominent dairy players, has delivered a strong performance in the second quarter of FY 2025-26 (ended September 30). Consolidated revenue rose by 15.58% year-on-year to ₹1,025.98 crore, up from ₹887.61 crore a year ago. At the same time, net profit surged 56.28% to ₹45.65 crore, up from ₹29.21 crore in the same quarter last year.

This growth reflects the company’s increasing traction in its core categories (ghee, cheese, paneer) as well as its new-age business segments. According to market commentary, Parag’s value-added products are gaining ground, with premium brands like Pride of Cows, Go Cheese and Avvatar (new age business) contributing meaningfully to revenue growth. Volume growth too has been healthy: about 10% year-on-year, while value growth was higher. This suggests rising consumer willingness to pay for branded and premium dairy products.

Margins improved as well. While raw-milk procurement costs remain under pressure, Parag cited that its product-mix shift towards higher-margin value-added products helped mitigate input inflation. Data show the gross profit margin improved (for FY24) to ~25.8%, and for Q2 the margin expansion is evident. In addition, the company has been reducing debt and expanding its distribution and export footprint (including a subsidiary in Dubai) to build a future-ready business.

Analysts noted that the results mark a “new phase of growth” for Parag Milk Foods — the company is transitioning from bulk commodity dairy to a more branded, premium, value-added offering. The “new-age business” segments (premium fresh dairy, health-/nutrition-oriented dairy, and international expansion) are expected to grow faster than the legacy milk and SMP (skimmed milk powder) lines. As one commentary notes, the stock surged ~13-16% on the strong Q2 results.

Looking ahead, the company’s strategy focuses on scaling its premium product portfolio, widening retail reach (including smaller towns and exports), deepening farmer linkages for consistent milk supply and ensuring quality/traceability in its raw material chain. With GST reforms and rising consumer demand for branded dairy, Parag appears well-positioned for sustained growth — though it remains exposed to raw-milk inflation and cold-chain challenges like other dairy players.

Industry Insight:
Parag Milk Foods’ strong quarter underscores two key trends in Indian dairy: first, a shift from plain volume play to premium branded value-added products, and second, the rising importance of distribution, brand-building, and export ambition. For labs, processors and dairy value-chain stakeholders, this implies growing demand for premium-grade cheese, functional products, nutrition-fortified milk, and stricter quality control and traceability systems. The results highlight that dairy players who invest in high-margin segments, brand strength and supply-chain integrity are likely to outperform in this new phase of the industry.

Source : Dairynews7x7 Nov 14th 2025 CNBCTV18