Parag Milk Foods shares tank 6% after muted Q1 net profit

Shares of Parag Milk Foods Ltd fell in Tuesday’s trade after the company reported a tepid set of first quarter results. The dairy producer's stock declined 5.9 per cent to Rs 238.55 on BSE over its previous close of Rs 253.60 apiece.

The stock declined as Parag Milk Foods reported a mere 1 per cent rise in Profit After Tax (PAT) at Rs 28 crore for the June quarter. This is even as Parag Milk Foods reported its highest-ever first-quarter revenue. The company reported a consolidated revenue of Rs 852 crore, marking a 12 per cent value growth year-on-year (YoY), supported by a 5 per cent increase in sales volume.

The Ebitda (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew 6 per cent YoY to Rs 66 crore, but the Ebitda margin saw a slight dip to 7.7 per cent from 8.1 per cent in the same quarter last year.

With this drop, the scrip was off 7.5 per cent its 52-week high of Rs 258.

The company said that, while it generated strong revenue, margin pressures likely weighed on investor sentiment. The Gross Profit Margin (GPM) for the quarter was stable at 27.4 per cent, compared to 27.5 per cent in the corresponding quarter of the previous year.

“The average milk prices during the Q1FY26 were at Rs 37/ litre; up per cent YoY, almost at par QoQ, while the company handled an average of 16.5 lakh litres of milk per day during Q1; 10per cent up QoQ. Despite volatility in milk prices during the period, the Company has been able to pass on the commodity prices with EBITDA growth of 6 per cent YoY” Parag Milk Foods said

Devendra Shah, Chairman of Parag Milk Foods, said, “Q1 FY26 has set a promising tone for PMFL as we begin the new financial year. Delivering our highest-ever first-quarter revenue reflects our strategic focus and disciplined execution.”

“Our value-added product portfolio and purpose-led marketing are deepening consumer trust and supporting long-term value creation,” Shah said.

“Our brands are not only rooted in tradition — celebrating the authenticity of Indian dairy — but are also evolving to meet the aspirations of health-conscious households. As the festive season approaches, we are energized by the growing momentum,” Shah said.

Source : Dairynews7x7 July 24th 2025 Business standard by Ritik Raj