Parag Milk Foods Ltd. (PMFL) has posted a resilient performance for Q1 FY26, with consolidated net profit rising marginally by 1.02% YoY to Rs 27.58 crore, up from Rs 27.30 crore in the same period last year. Revenue from operations surged by 12.34% YoY to Rs 851.52 crore, marking the company’s highest-ever first-quarter revenue.
Operating Metrics and Margins
EBITDA for the quarter rose 6% YoY to Rs 66 crore. However, the EBITDA margin saw a slight dip to 7.7% compared to 8.1% in Q1 FY25. Profit Before Tax stood at Rs 29.18 crore, an 8.83% increase over the previous year. Despite raw milk prices increasing 18% YoY to Rs 37/litre, PMFL managed to sustain a gross profit margin of 27.4%—stable compared to 27.5% last year and improving sequentially from 25.1% in Q4 FY25. The company handled 16.5 lakh litres of milk per day, a 10% increase over the previous quarter.
Core Categories & Market Share
The business achieved 5% volume growth YoY in Q1, led by strong performance in ghee, cheese, and paneer, which collectively posted 9% volume growth. Gowardhan Ghee maintained a 22% market share in the branded cow ghee category, while Go Cheese sustained its leadership with a 35% share in the cheese segment.
Premium Portfolio Momentum
PMFL’s premium and new-age brands continued to outpace the broader portfolio:
- Pride of Cows posted 36% value growth, supported by new launches and deeper reach via quick commerce.
- Avvatar, the company’s performance nutrition brand, recorded an eightfold increase over the past three first quarters and saw strong uptake of its new protein wafer bar.
Collectively, these businesses grew 57% YoY in value terms and now contribute 9% to total revenue, up from 6% a year ago.
Marketing & Consumer Engagement
Parag Milk Foods executed a 360-degree marketing strategy to drive visibility. This included TV integrations (e.g., Maharashtrachi Hasya Jatra), presence at the Zee Cine Awards, influencer-led digital campaigns, and robust in-store branding across trade channels. The “What’s the Source?” campaign further reinforced trust in its premium milk offerings.
Chairman’s Commentary
Devendra Shah, Chairman, PMFL, stated: “Q1 FY26 has set a promising tone. Our highest-ever first-quarter revenue reflects disciplined execution and our deep consumer connect. As we head into the festive season, our brands—rooted in Indian dairy tradition and tailored to modern lifestyles—are well positioned to meet rising demand. With 16.5 lakh litres of milk handled daily and increasing contribution from premium categories, we are building a strong foundation for long-term value creation.”
Outlook
As India enters its festive season, Parag Milk Foods aims to capitalize on demand for value-added dairy products, including ghee, traditional sweets, and cheese. With a pan-India footprint and state-of-the-art facilities in Maharashtra (Manchar) and Andhra Pradesh (Palamaner), the company is set to deepen its market leadership in both mass and premium segments.
