Parag Milk Foods Q1 Results: Revenue Up 10.8% YoY, EBITDA Margin Expands to 7.23%
Parag Milk Foods reported Q1 consolidated revenue of ₹944.57 crore, up from ₹851.52 crore YoY, with EBITDA rising to ₹68.30 crore and EBITDA margin expanding to 7.23% from 6.80%. Consolidated net profit stood at ₹22.05 crore. The board approved doubling cheese manufacturing capacity to 120 MT/day with a ₹105 crore investment and named Rakesh Kothari as the new CFO effective August 7, 2026.
*this image is generated using AI for illustrative purposes only.
Parag Milk Foods reported its unaudited financial results for the quarter ended June 30, 2026, at a Board of Directors meeting held on August 6, 2026. Consolidated revenue from operations rose to ₹944.57 crore from ₹851.52 crore in the corresponding quarter of the previous year, while consolidated EBITDA improved to ₹68.30 crore, with EBITDA margin expanding to 7.23% from 6.80% year-on-year. The board also approved a significant cheese manufacturing capacity expansion and a new Chief Financial Officer appointment during the same session.
Standalone Financial Performance
On a standalone basis, the company posted revenue from operations of ₹920.47 crore for the quarter ended June 30, 2026, compared to ₹830.52 crore in the corresponding quarter of the previous year. Total income, including other income of ₹2.16 crore, stood at ₹922.63 crore. The following table summarises the key standalone financial metrics:
| Metric: | Q1 FY27 (30-Jun-26) | Q4 FY27 (31-Mar-26) | Q1 FY26 (30-Jun-25) |
|---|---|---|---|
| Revenue from Operations (₹ Crore): | 920.47 | 946.17 | 830.52 |
| Other Income (₹ Crore): | 2.16 | 7.73 | 4.97 |
| Total Income (₹ Crore): | 922.63 | 953.90 | 835.49 |
| Total Expenses (₹ Crore): | 890.23 | 920.76 | 802.89 |
| Profit Before Tax (₹ Crore): | 32.40 | 33.14 | 32.60 |
| Net Profit (₹ Crore): | 25.43 | 28.28 | 32.35 |
| Basic EPS (₹): | 2.03 | 2.26 | 2.71 |
| Diluted EPS (₹): | 2.00 | 2.21 | 2.57 |
Standalone total expenses for the quarter were ₹890.23 crore, compared to ₹802.89 crore in the corresponding quarter of the previous year. Cost of materials consumed was the largest expense component at ₹724.33 crore. Profit before tax came in at ₹32.40 crore, while net profit for the period stood at ₹25.43 crore. Total comprehensive income for the quarter was ₹25.36 crore.
Consolidated Financial Performance
On a consolidated basis, which includes subsidiary Bhagyalaxmi Dairy Farms Private Limited, the company reported revenue from operations of ₹944.57 crore for the quarter ended June 30, 2026, against ₹851.52 crore in the corresponding quarter of the previous year. Consolidated EBITDA for the quarter stood at ₹68.30 crore, compared to ₹57.90 crore in the corresponding quarter of the previous year, with EBITDA margin expanding to 7.23% from 6.80% year-on-year. Total consolidated income stood at ₹945.98 crore. The table below presents key consolidated financial metrics:
| Metric: | Q1 FY27 (30-Jun-26) | Q4 FY27 (31-Mar-26) | Q1 FY26 (30-Jun-25) |
|---|---|---|---|
| Revenue from Operations (₹ Crore): | 944.57 | 945.34 | 851.52 |
| Other Income (₹ Crore): | 1.41 | 18.86 | 7.64 |
| Total Income (₹ Crore): | 945.98 | 964.20 | 859.16 |
| Total Expenses (₹ Crore): | 916.69 | 924.06 | 829.98 |
| EBITDA (₹ Crore): | 68.30 | — | 57.90 |
| EBITDA Margin (%): | 7.23 | — | 6.80 |
| Profit Before Tax (₹ Crore): | 29.29 | 40.14 | 29.18 |
| Net Profit (₹ Crore): | 22.05 | 32.24 | 27.58 |
| Basic EPS (₹): | 1.76 | 2.58 | 2.31 |
| Diluted EPS (₹): | 1.73 | 2.52 | 2.19 |
Consolidated net profit for the quarter stood at ₹22.05 crore, compared to ₹27.58 crore in the quarter ended June 30, 2025 and ₹32.24 crore in the quarter ended March 31, 2026. Total comprehensive income on a consolidated basis was ₹21.98 crore for the quarter. The paid-up equity share capital remained at ₹125.01 crore (face value of ₹10 each).
Cheese Capacity Expansion
The board approved a brownfield expansion of the company's cheese manufacturing capacity. The key details of the approved expansion are as follows:
| Parameter: | Details |
|---|---|
| Existing Capacity: | 60 MT/day |
| Proposed Capacity Addition: | 60 MT/day (approx.) |
| Total Capacity Post-Expansion: | 120 MT/day (approx.) |
| Investment Required: | ₹105 Crore (approx.) |
| Mode of Financing: | Internal accruals/Borrowings/Lease |
| Target Completion: | By Financial Year 2027-28 |
| Rationale: | Readiness towards long-term growth prospects |
The company noted that the existing cheese manufacturing capacity is close to full utilisation, necessitating the capacity addition.
CFO Appointment and Leadership Changes
The board approved the appointment of Mr. Rakesh Kothari as Chief Financial Officer (CFO) and Key Managerial Personnel (KMP) with effect from August 7, 2026, based on the recommendations of the Nomination and Remuneration Committee and the Audit Committee. Mr. Kothari holds an MBA in General Management from the University of Mumbai and a Bachelor of Commerce degree, and is a finance professional with over 25 years of experience across banking and other industries. His expertise spans financial planning, treasury operations, investor relations, risk management, and business finance. Prior to joining Parag Milk Foods, he worked with Citibank and Sadhana Nitro Chem, and has been serving as President – Finance & Accounts in the company since August 18, 2025.
Consequently, Mr. Pritam Shah was relieved from his additional duties as Interim CFO with effect from the close of business hours on August 6, 2026. Mr. Shah continues to hold the position of Managing Director and Key Managerial Personnel of the company in accordance with the existing terms of his appointment. The statutory auditors, Sharp & Tannan, Chartered Accountants, issued unmodified review conclusions on both the standalone and consolidated financial results for the quarter.
Historical Stock Returns for Parag Milk Foods
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.68% | +4.35% | -3.29% | -6.60% | -3.77% | +67.40% |
How will the ₹105 crore investment in cheese capacity expansion impact Parag Milk Foods' debt-to-equity ratio and future interest coverage ratios?
What specific strategies will the new CFO, Mr. Rakesh Kothari, implement to sustain the EBITDA margin expansion observed in Q1 FY27?
Given the near-full utilization of existing cheese capacity, how quickly is the company expecting the new 60 MT/day capacity to contribute to revenue post-completion in FY28?
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