Milky Mist: 895% Profit Jump, but High Debt on the one Side

Milky Mist is a value-added dairy FMCG company. Unlike most peers, it sells zero liquid milk. Its 640+ SKUs across 22 product categories span paneer, curd, ice cream, Greek yogurt, cheese and ghee, distributed across 3,94,000 retail touchpoints nationally. What happened: Q1FY27 revenue grew 43.6% YoY to Rs 973.5 crore, driven by paneer (+34% YoY to Rs 248.3 crore), yogurt (+153%) and ice cream (+60%). EBITDA rose 74.5% to Rs 144.9 crore, expanding margins from 12.2% to 14.9%. Net profit jumped 895% to Rs 64.7 crore, though this reflects recovery from a very low base of Rs 6.5 crore. The company is also building a whey protein plant to process 1 million litres daily, targeting operations within 15-18 months. Why it matters: India’s value-added dairy market is projected to grow from Rs 5.5 lakh crore to Rs 10 lakh crore by 2030. Milky Mist earns 100% of its revenue from value-added products. FSSAI crackdowns on analogue paneer are redirecting consumer demand to genuine dairy brands. Non-South geographies are growing at 50% YoY, expanding the company’s revenue base well beyond its Tamil Nadu core. What I am watching: Management targets 43-44% annual revenue growth and 16-18% EBITDA margins over 3-4 years. Both are ambitious targets. FY26 liabilities stood at Rs 2,213.5 crore, significant for a company at this scale. How fast it reduces debt alongside capacity expansion will determine if earnings growth translates into shareholder value. My stance: The business model, category mix and growth trajectory are genuinely impressive. Debt is the central risk. Watching margin improvement through FY27 and the whey plant ramp before forming a firm view. I do not hold a position in Milky Mist at the time of writing. This is not investment advice.