Parag Milk Foods Q2 EBITDA Grows 37% as Margin Expands to 8.1%

Parag Milk Foods has reported strong operating growth in Q2 FY27, supported by higher sales volumes and increasing demand for value-added dairy products. Consolidated revenue reached a record ₹1,241 crore, up 23% year-on-year, while EBITDA increased 37% on an adjusted basis to ₹101 crore.

The company's EBITDA margin improved to 8.1%, compared with an adjusted 7.3% in the corresponding quarter last year, signalling improved operating profitability.

Revenue Growth Supported by Higher Volumes

For the quarter ended September 30, 2026, Parag Milk Foods recorded 12% volume growth and 23% value growth.

Gross profit increased 24% year-on-year to ₹323 crore, while gross profit margin improved to 26%, compared with 25.8% in Q2 FY26.

The performance reflects stronger demand across the company's core dairy categories, alongside growth in its newer consumer businesses.

Ghee, Cheese, Paneer and Curd Drive Core Business

The company's flagship categories—ghee, cheese, paneer and curd—generated combined revenue of ₹778 crore, contributing approximately 63% of consolidated turnover.

These categories recorded 20% value growth and 7% volume growth.

Paneer achieved its highest-ever quarterly sales volume, supported by the shift from unorganised to branded products and increasing consumer interest in protein-rich foods. The cheese business also improved compared with the previous quarter, with the HoReCa segment registering double-digit growth.

New-Age Business Records 71% Growth

Parag Milk Foods' New Age Business, comprising Pride of Cows and Avvatar, recorded Q2 revenue of ₹154 crore, registering 71% year-on-year growth.

Its contribution to the company's overall revenue increased to 12%, compared with 9% in the corresponding quarter last year.

The growth highlights the company's increasing focus on premium dairy, protein-based nutrition and differentiated consumer products.

Net Profit Declines Despite Strong Operating Performance

Despite the improvement in revenue and operating earnings, consolidated profit after tax (PAT) declined 8% year-on-year to ₹42 crore.

However, the comparison was affected by a one-time gain of approximately ₹16 crore in the previous year's quarter. Excluding this item, the company reported 42% growth in PAT.

This distinction is important: reported profit declined, but the underlying operating and adjusted earnings performance improved.

Capacity Expansion to Strengthen Dairy Portfolio

To support future demand, Parag Milk Foods has approved significant capacity expansion investments.

• Paneer: Approximately ₹100 crore investment to increase manufacturing capacity from 20 tonnes per day to 80 tonnes per day.
• Cheese: Approximately ₹105 crore investment to double manufacturing capacity to 120 tonnes per day.

These investments are expected to strengthen the company's position in branded paneer and cheese, two categories benefiting from changing consumer preferences and the growth of organised dairy consumption.

H1 FY27 Performance Remains Strong

For the first half of FY27, Parag Milk Foods reported consolidated revenue of ₹2,185 crore, representing 18% year-on-year growth.

EBITDA stood at ₹170 crore, up 23% on an adjusted comparison, while reported PAT was ₹64 crore. Excluding the previous year's one-off gain, PAT increased 12%.

The first-half performance indicates continued business expansion, supported by volume growth and the company's focus on value-added dairy categories.

What This Means for India's Dairy Industry

Parag Milk Foods' Q2 performance reflects three important developments in the organised dairy market:

• Branded paneer is gaining traction: Higher volumes indicate an opportunity for organised players as consumers increasingly shift from unorganised products.
• Protein-led products are expanding: Growth in Avvatar and other premium offerings highlights the commercial potential of nutrition-focused dairy.
• Processing capacity is becoming a priority: Investments in paneer and cheese indicate confidence in long-term demand for value-added dairy products.

The bigger takeaway: Parag Milk Foods is increasingly positioning itself beyond conventional dairy products, with branded paneer, cheese and protein-led offerings contributing to its growth strategy. The next challenge will be sustaining margins while managing milk procurement costs and delivering returns from its capacity expansion.

Source:  Read full story here 04 Nov, 2026 Edited and Reported by

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