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.

The post Parag Milk Foods reports strong Q1 FY26 performance appeared first on Business of Food.

All Food Business Operators (FBOs) have been directed to remove any claims related to A1 and A2 proteins from their websites and packagings. FBOs must comply with this order within six months for pre-printed labels from the date of issuance of the direction, with no extensions granted.

Commenting on this new directions, Devendra Shah, Chairman, Parag Milk Foods, said, “As a responsible corporate entity, it is essential to eliminate claims that could mislead consumers. The distinction between A1 and A2 milk has been largely driven by marketing rather than scientific evidence, and the global trend is shifting away from this categorization. The real value of milk lies in its complete nutritional profile, including its rich content of protein, calcium, and vitamins.”

Shah further added, “The FSSAI’s recent clarification aligns with a broader perspective that focuses on the comprehensive health benefits of milk rather than passing trends. As the dairy industry moves forward, it must prioritize quality, safety, and informed consumer choices. This FSSAI announcement is a positive step towards ensuring consumers receive accurate information and promoting greater transparency in the dairy sector.”

The post FSSAI Issues Clarification on Marketing of Milk & Milk Products, Emphasizes Removal of A1/A2 Protein Claims appeared first on Business of Food.

Devendra Shah, Chairman of Parag Milk Foods Ltd, expressed his pleasure at the company’s performance, highlighting the milestone of crossing INR 3,000 crore in consolidated revenues. The profit after tax stood at INR 91 crore, complemented by healthy operating cash flows. Shah noted that while milk procurement prices have been favorable, the company is prepared to maintain and improve its margin profile despite potential price increases.

The company’s growth has been bolstered by its strategic investments in modern trade and e-commerce channels, which have significantly contributed to overall revenue. The expansion of the value-added product portfolio and premiumization efforts have also enhanced the gross margin profile. Advertising and promotion expenses increased to 4.2% of revenue in FY24 from 2.5% in FY23, reflecting the company’s commitment to brand building.

In terms of core categories, Ghee and Cheese have seen continuous traction throughout the year and have posted a growth of 3.5 % YoY. The company’s in-house consumer brand ‘Avvatar’ is consistently growing at 100% CAGR for two years in a row. 

In addition to it, the General Trade, Modern trade & e-commerce posted a growth of 3% YoY, and 6% YoY, respectively for FY 24. Moreover, the average milk procurement of the company stood at 16 lakh liters per day; the average milk price stood at INR 33.8 per liter.

Parag Milk Foods’ premium brand ‘Pride of Cows’ continues to perform well, expanding its product portfolio and distribution footprint across seven cities. The Company is also expanding its Bhagyalakshmi Dairy Farm, a 100% subsidiary dairy farm that supplies exclusively to the Pride of Cows brand.

The Company has strengthened its brand equity reach by adopting impact marketing campaigns like participation in ‘Kaun Banega Crorepati’ (KBC), which enables the company to widen its reach in tier 2 and tier 3 towns and cities through brand messaging ‘Garv Se Gowardhan.’ The company’s brand ‘Go Cheese’ has also participated in shows like India’s Got Talent and has undertaken very focused print marketing.

Apart from this, some of the new developments in the company are: 

Entered into the Sweets category under the brand Gowardhan: The Company has forayed into the traditional sweet segment under the brand ‘Gowardhan’. Currently, the brand has seven delectable sweet ranges namely Kaju Katli, Malai Pedha, Kesar Pedha, Kaju Pista Roll, Mawa Gujiya, Mysore Pak, and Malai Modak. With an estimated branded market size of INR 7000-8000 crore, the Indian sweets market presents vast opportunities for growth and innovation.

Expansion in the International market: The company plans to incorporate a n wholly-owned subsidiary in Dubai, UAE. This strategic move aims to enhance the company’s global reach and streamline its supply chain operations

‘‘We would continue to enhance our industry-leading R&D capabilities and infrastructure to drive innovation and delight our consumers across the globe. With strong foundation in place, we are confident of posting industry leading growth and profitability ahead.” says Shah.

The post Parag Milk Foods surpasses INR 3,000 crore in consolidated revenue for FY24 appeared first on Business of Food.

With an extensive background in financial management and a track record of success, Jain brings a wealth of expertise to the organization. A Chartered Accountant, Jain achieved All India Rank 18 in 2012 and All India Rank 22 in Cost Accountancy in 2013. He was twice recognized as one of India’s top 40 CA’s under the age of 40 by the Institute of Chartered Accountants of India.

Jain’s previous role as Head of Finance at Reliance Luxury Lifestyles (Reliance Brands) provided invaluable experience in leading financial strategies for over 30 luxury brands, including Armani, Jimmy Choo, Coach, Balenciaga, Michael Kors, and Bottega Veneta. He has also worked with Parle Agro, Britannia, and Bauli India Bakes.

In his new role, Jain will play a key role in driving the company towards new heights of financial success. His strategic vision and proven leadership capabilities will be pivotal in shaping the company’s financial strategies and ensuring sustainable growth.

Commenting on the appointment, Devendra Shah said, “We are pleased to welcome Mr. Sumit Jain to our team as President of Finance. His exceptional track record and expertise in financial management will be instrumental in guiding our company towards achieving our strategic goals. We look forward to working together with Mr. Jain to accomplish new milestones and drive continued success for Parag Milk Foods.”

Sumit Jain expressed his enthusiasm for joining Parag Milk Foods, stating, “I am honored to be part of the journey with Parag Milk Foods and excited to contribute to its financial success. I look forward to collaborating with the talented team at Parag Milk Foods and leveraging our collective strengths to achieve our objectives.” 

Established in 1992, Parag Milk Foods Limited, is one of the largest private dairy FMCG Companies in India with a country-wide presence. The company has manufacturing facilities with in-house technology which are strategically located at Manchar in Maharashtra, Palamaner in Andhra Pradesh, and Sonipat in Haryana.

Parag Milk Foods boasts an integrated business model and strong R&D capabilities which has helped it emerge a leader in innovation. Their dairy farm, Bhagyalaxmi Dairy Farm Limited houses more than 2,500 cows, with a mechanised milking process. Under the brand ‘Gowardhan’, the company offers traditional products like Ghee, Dahi, Paneer, etc. They also have a brand called ‘Go’ under which they offer products like Cheese, UHT Milk, Buttermilk, Lassi, Yoghurt etc. 

The post Parag Milk Foods Appoints Reliance Luxury Lifestyles’ Sumit Jain as President Finance appeared first on Business of Food.