Parag Milk Foods Q1 Profit Falls 20% Amid Cost Pressure

Parag Milk Foods reported a 20% year-on-year decline in consolidated net profit to ₹22 crore in Q1 FY27, even as revenue increased 11% to ₹945 crore compared with Q1 FY26. Overall volumes grew 3%, with lower volumes in flagship categories partly offset by strong growth in the company's New Age portfolio. The company's flagship categories—ghee, cheese, paneer and dahi—accounted for 61% of total revenue and delivered 10% value growth, despite a 2% year-on-year volume decline, attributed largely to a temporary slowdown in specific channels.

In contrast, the New Age business comprising Pride of Cows and Avvatar generated ₹118 crore revenue, registering a strong 59% YoY growth and increasing its contribution to 13% of overall turnover. The company said milk prices increased 13% YoY, but calibrated price increases and a better product mix helped sustain gross margin at 27.3%, compared with 27.4% in Q1 FY26. EBITDA increased 6% YoY to ₹70 crore, although EBITDA margin contracted by 30 basis points to 7.4% in the June 2026 quarter.

Profit before tax stood at ₹29 crore, up 0.4% YoY. Parag Milk Foods Executive Director Akshali Shah said sustained inflation in milk procurement prices and elevated input costs across the dairy value chain affected quarterly performance, while the company remained encouraged by prospects of improved milk availability following a favourable monsoon and the seasonal demand uplift expected during the festive period.

Parag Milk Foods has a pan-India presence and sells traditional dairy products including ghee, dahi, paneer and liquid milk under Gowardhan, while Go includes cheese, UHT milk, buttermilk, lassi and flavoured milk shakes; Pride of Cows serves the premium farm-to-home segment, and Avvatar operates in whey-protein-based sports nutrition. The company's stock closed at ₹223.40 on the BSE, down 0.80%. (business-standard.com)

Source: Dairynews7x7 8 Aung, 2026 Read full story here

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