Parag Milk Foods Q2 Revenue Hits Record ₹1,241 Crore; Net Profit Falls 8%

Parag Milk Foods Limited reported its highest-ever quarterly consolidated revenue of ₹1,241 crore for Q2 FY27, marking a 23.1% year-on-year increase, supported by 12% volume growth. However, reported net profit declined 8% to ₹42 crore from ₹45.6 crore in the corresponding quarter last year. The dairy and FMCG company announced its results for the quarter ended September 30 on November 3.

EBITDA stood at ₹101 crore, with the company reporting 37% growth on an adjusted comparison after excluding a one-off item in the year-ago period. The EBITDA margin improved to 8.1% from an adjusted 7.3%. Parag Milk Foods said its reported profit after tax (PAT) growth was affected by the high base in the previous year, which included a one-time gain.

Parag Milk Foods Q2 revenue rises 23% on volume growth

Consolidated revenue from operations increased to ₹1,240.89 crore in Q2 FY27 from ₹1,007.95 crore in Q2 FY26. The company recorded 12% year-on-year volume growth and 23% value growth.

Gross profit increased 24% to ₹323 crore, while gross profit margin improved to 26% from 25.8% in the year-ago quarter.

The company's flagship categories — ghee, cheese, paneer and curd — generated revenue of ₹778 crore, accounting for 63% of consolidated turnover. The segment recorded 20% value growth and 7% volume growth.

Parag Milk Foods said paneer achieved its highest-ever quarterly volumes, supported by growing branded consumption and demand for protein-rich products. Its cheese business also improved over the previous quarter, with the HoReCa segment recording double-digit growth.

Why Parag Milk Foods' reported net profit declined

Despite the growth in revenue and operating profit, reported consolidated PAT declined 8% year-on-year to ₹42 crore.

The company attributed the comparison to a one-time gain of around ₹16 crore in the year-ago quarter, arising from the reversal of mark-to-market adjustments following the conversion of foreign currency convertible bonds into equity.

Excluding this prior-year one-off, Parag Milk Foods said PAT grew 42% year-on-year. Its adjusted EBITDA increased 37%, with the EBITDA margin rising to 8.1% from 7.3%.

The distinction between reported and adjusted profit is important when assessing the quarter: the reported bottom line declined, even as the company's operating performance improved.

Parag Milk Foods' new-age business grows 71%

The company's new-age business, comprising Pride of Cows and Avvatar, recorded Q2 revenue of ₹154 crore, up 71% year-on-year. It contributed 12% to overall turnover, compared with 9% a year earlier.

For the first half of FY27, consolidated revenue increased 17.5% to ₹2,185 crore. EBITDA stood at ₹170 crore, up 23% on the company's adjusted comparison, while reported PAT declined 13% to ₹64 crore.

The company also approved investments of around ₹100 crore to increase paneer manufacturing capacity from 20 tonnes per day to 80 tonnes per day, and ₹105 crore to double cheese capacity to 120 tonnes per day. These expansions are expected to support its growth in key dairy categories.

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