Milky Mist Dairy Food Limited reported a ₹64.68 crore net profit for Q1FY27, marking an 890% year-on-year increase from the previous period's ₹6.53 crore. Revenue from operations surged 43.6% to ₹973.45 crore, driven by volume growth, improved product mix, and pricing power.

The company, which listed on Indian stock exchanges in August 2026, utilized its IPO proceeds to deleverage and expand capacity. In Q1FY27, Milky Mist commissioned a new cheddar cheese plant with an installed capacity of 120 MT/day, supporting its strategy to scale high-growth categories.

Financial Performance

Revenue growth was broad-based across key product categories. Paneer revenue rose 34% to ₹248.29 crore, while cheese sales grew 38% to ₹137.12 crore. Yogurt emerged as a significant growth driver, surging 153% to ₹84.52 crore. Ice cream revenue also expanded 60% to ₹102.25 crore. The curd category recorded a 27% YoY growth, contributing to the strong performance of the summer portfolio.

Gross profit expanded 56.1% to ₹333.02 crore, lifting the gross margin to 34.21% from 31.46% in Q1FY26. EBITDA grew 74.5% to ₹144.89 crore, with the margin widening to 14.88% from 12.24% in the prior year quarter. This operating leverage contributed significantly to the bottom-line improvement.

What the Numbers Show

The sharp divergence between top-line growth and profit expansion highlights the impact of operating leverage. While revenue increased by 43.6%, EBITDA grew at nearly twice that rate (74.5%), indicating that fixed costs were spread over a larger sales base. Furthermore, the PAT margin jumped from 0.96% to 6.64%, suggesting that the company is moving past its break-even threshold on a quarterly basis as scale efficiencies kick in.

Strategic Developments

Milky Mist continues to invest in capacity expansion to meet rising demand. The company increased paneer capacity from 72 MT/day to 192 MT/day in June 2025. Additionally, it is expanding cheddar cheese capacity from 15.6 MT/day to 120 MT/day. The firm also raised ₹1,553 crore through its IPO, with proceeds allocated toward repaying borrowings (₹496.9 crore), expanding manufacturing facilities (₹469.2 crore), and general corporate purposes.

Management Commentary

Dr. K Rathnam, Wholetime Director and Chief Executive Officer, stated that the gross profit expansion was primarily driven by higher volume growth, improved product mix, and pricing ability. He noted that the summer portfolio, comprising ice creams, curd, and yogurt, recorded strong YoY growth due to an extended summer season, particularly across Southern India. The company aims to drive profitable growth through portfolio expansion, operating discipline, and investments in manufacturing and distribution capabilities.

Market Presence

The company maintains a pan-India presence across 22 states and five union territories. Tamil Nadu remains the largest market, contributing 26% of net sales, followed by Karnataka at 24%. General trade accounts for 33% of sales, while modern trade and e-commerce platforms contribute 21% and 19%, respectively.

Milky Mist Dairy Food Limited board approved the deletion of Part B of its Articles of Association during a meeting held on August 31, 2026. The amendment aligns the company’s governance documents with current regulatory requirements following the termination of a specific shareholders' agreement.

The Board of Directors considered and approved the alteration subject to shareholder approval through a postal ballot. The company must also secure any necessary regulatory or statutory approvals under applicable laws before the change takes effect.

Details of the Amendment

Part B of the Articles of Association was originally incorporated to capture key terms from a Shareholders' Agreement (SHA). This agreement was executed between the company and several parties, including Grand Anicut Fund 1, Mr. Sathishkumar T, Ms. Anitha S, Mr. T S Shanjay, and Ms. T S Nitin.

The source states that the SHA has now terminated and is no longer applicable. Consequently, the company proposes deleting Part B to ensure the Articles of Association reflect the current legal and governance structure without outdated provisions.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was issued in compliance with Para A of Part A of Schedule III of the same regulations.

The Board meeting commenced at 3:40 pm and concluded at 4:30 pm. S Prakash, Company Secretary and Compliance Officer, signed the disclosure. The detailed disclosure is available on the company website.