Parag Milk Foods Q1 Profit Declines 20% Despite Double-Digit Revenue Growth

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628

reported a mixed performance for the first quarter of FY27, with net profit declining 20.1% year-on-year to ₹22.1 crore from ₹27.6 crore in the corresponding quarter last year. Despite the decline in profitability, revenue from operations increased 10.9% to ₹945 crore, reflecting healthy demand across its dairy product portfolio. The company's operating performance improved during the quarter. EBITDA rose 17.9% year-on-year to ₹68.3 crore, while the EBITDA margin expanded to 7.2% from 6.8% a year ago, indicating better operational efficiency. The board also approved an investment of ₹105 crore to expand its cheese manufacturing capacity from 60 metric tonnes per day to 120 metric tonnes per day. The expansion, expected to be completed by FY28, aims to meet growing demand for cheese and whey protein products and will be funded through a mix of internal accruals and debt. Industry & Economic Impact: The results reflect continued growth in India's organised dairy sector, supported by rising demand for value-added products such as cheese and whey protein. Capacity expansion by dairy companies indicates confidence in long-term consumption trends and increasing consumer preference for branded dairy products. From an economic perspective, investments in dairy processing strengthen agricultural value chains, support dairy farmers, generate rural employment, and enhance food processing capacity. Expansion in value-added dairy products also contributes to manufacturing growth and helps meet rising domestic demand. Source: NDTV Profit No Recommendations