Parag Milk Foods FY26 Revenue ₹3,818 Cr; PAT bei Up 19%, ROCE at 13.6%
Parag Milk Foods reported an 11% YoY increase in consolidated revenue to ₹3,818 Cr for FY26, with PAT before exceptional items rising 19% to ₹141 Cr. The New Age Business grew 91% YoY, contributing 10% to turnover, while core categories saw 8% volume growth. The Board recommended a final dividend of ₹1.10 per share and allotted ESOP shares.
*this image is generated using AI for illustrative purposes only.
Parag Milk Foods Limited's Board of Directors, at its meeting held on May 7, 2026, approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The statutory auditors, Sharp & Tannan, Chartered Accountants, issued unmodified opinions on both sets of financial results. The board meeting commenced at 7:00 P.M. (IST) and concluded at 9:05 P.M. (IST). In continuation of the results announcement, the company released an Investor Presentation pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which was used for a Post Earnings Conference Call with Analysts/Investors scheduled on May 8, 2026.
Standalone Financial Performance
On a standalone basis, Parag Milk Foods delivered a notable improvement in profitability for FY26. Revenue from operations grew to ₹3,742 crores from ₹3,367 crores in FY25, representing 11% value growth. Gross Profit on a standalone basis stood at ₹949 crores, up 7% YoY, with a Gross Profit Margin of 25.4% compared to 26.4% in the prior year. Standalone EBITDA grew 6% YoY to ₹297 crores versus ₹280 crores in FY25, with an EBITDA margin of 7.9%. Net profit after tax rose to ₹150.88 crores from ₹123.54 crores, while PAT before exceptional items (bei) grew 27% to ₹156 crores from ₹124 crores. An exceptional item of ₹5.39 crores was recognised during the year on a standalone basis, arising from a one-time increase in employee benefit provisions following the Government of India's notification of four new Labour Codes on November 21, 2025. On a consolidated basis, the exceptional item stood at ₹5.70 crores.
The following table summarises the key standalone financial metrics:
| Metric: | Q4 FY26 | Q4 FY25 | FY26 | FY25 |
|---|---|---|---|---|
| Revenue from Operations (₹ Cr): | 946.17 | 898.69 | 3,742.03 | 3,367.40 |
| Total Income (₹ Cr): | 953.90 | 911.86 | 3,777.46 | 3,394.00 |
| Gross Profit (₹ Cr): | 241.00 | 231.00 | 949.00 | 888.00 |
| Gross Profit Margin (%): | 25.4% | 25.7% | 25.4% | 26.4% |
| EBITDA (₹ Cr): | 66.00 | 75.00 | 297.00 | 280.00 |
| EBITDA Margin (%): | 7.0% | 8.4% | 7.9% | 8.3% |
| Profit Before Tax (₹ Cr): | 33.14 | 36.88 | 158.79 | 134.84 |
| Net Profit After Tax (₹ Cr): | 28.28 | 32.43 | 150.88 | 123.54 |
| PAT bei (₹ Cr): | 28.00 | 32.00 | 156.00 | 124.00 |
| Basic EPS (₹): | 2.26 | 2.72 | 12.36 | 10.36 |
| Diluted EPS (₹): | 2.21 | 2.60 | 11.80 | 9.89 |
On the standalone balance sheet, total assets stood at ₹2,186.83 crores as at March 31, 2026, compared to ₹1,925.09 crores as at March 31, 2025. Total equity increased to ₹1,290.78 crores from ₹1,039.80 crores, supported by higher retained earnings and equity share capital. Non-current borrowings declined to ₹111.09 crores from ₹197.04 crores, indicating a reduction in long-term debt. Cash generated from operations stood at ₹149.54 crores, while net cash flows from operating activities were ₹132.42 crores for the year ended March 31, 2026.
Consolidated Financial Performance
The consolidated results encompass Parag Milk Foods and its subsidiary Bhagyalaxmi Dairy Farms Private Limited. Another subsidiary, Parag Foods Middle East FZE, incorporated in Dubai during FY25, had not yet commenced operations as at the reporting date. Consolidated revenue from operations for FY26 grew to ₹3,818 crores from ₹3,432 crores in FY25, reflecting 5% volume growth and 11% value growth. Gross Profit for FY26 stood at ₹1,020 crores, up 8% YoY, with a Gross Profit Margin of 26.7% versus 27.5% in the prior year. EBITDA for FY26 came in at ₹310 crores, up 6% YoY, with an EBITDA margin of 8.1% compared to 8.5% in the prior year. Net profit after tax on a consolidated basis rose to ₹135 crores, a 14% growth YoY, while PAT before exceptional items stood at ₹141 crores, reflecting 19% YoY growth.
| Metric: | Q4 FY26 | Q4 FY25 | FY26 | FY25 |
|---|---|---|---|---|
| Revenue from Operations (₹ Cr): | 945.34 | 918.25 | 3,817.50 | 3,432.21 |
| Total Income (₹ Cr): | 964.20 | 931.34 | 3,870.96 | 3,472.46 |
| Gross Profit (₹ Cr): | 265.00 | 246.00 | 1,020.00 | 943.00 |
| Gross Profit Margin (%): | 28.0% | 26.7% | 26.7% | 27.5% |
| EBITDA (₹ Cr): | 78.00 | 75.00 | 310.00 | 293.00 |
| EBITDA Margin (%): | 8.3% | 8.2% | 8.1% | 8.5% |
| Profit Before Tax (₹ Cr): | 40.14 | 32.55 | 152.39 | 132.59 |
| Net Profit After Tax (₹ Cr): | 32.24 | 26.21 | 135.05 | 118.79 |
| PAT bei (₹ Cr): | 32.00 | 26.00 | 141.00 | 119.00 |
| PAT bei % of Sales: | 3.4% | 2.9% | 3.7% | 3.5% |
| Basic EPS (₹): | 2.58 | 2.20 | 11.06 | 9.97 |
| Diluted EPS (₹): | 2.52 | 2.10 | 10.57 | 9.51 |
Consolidated total assets stood at ₹2,280.63 crores as at March 31, 2026, up from ₹2,032.64 crores in the prior year. Total consolidated equity increased to ₹1,258.56 crores from ₹1,023.41 crores. Non-current borrowings on a consolidated basis declined to ₹157.96 crores from ₹252.37 crores. Net cash flows from operating activities on a consolidated basis stood at ₹149.48 crores for the year ended March 31, 2026. In Q4 FY26, despite a 5% volume decline — primarily in core categories due to a high base from institutional and export sales, and in the ingredients business due to lower institutional sales and planned reduction in Skimmed Milk Powder (SMP) — the company delivered 3% value growth. Consolidated PAT grew 23% in Q4 FY26, backed by improvement in gross margins, which strengthened sequentially to 28.0% in Q4 from 25.9% in Q3, driven by measured price increases and a favourable product mix.
Capital Structure and Return Ratios
The investor presentation highlighted a significant strengthening of the company's capital structure during FY26. Equity was bolstered through the issuance of preferential warrants and conversion of Foreign Currency Convertible Bonds (FCCB) into equity. Cashflow from operations grew to ₹149 crores, while net debt now stands at ₹484 crores. The key return and leverage metrics are summarised below:
| Financial Metric: | FY26 |
|---|---|
| ROCE: | 13.6% |
| ROE: | 11.3% |
| Net Debt/Equity Ratio: | 0.4x |
| Net Debt (₹ Cr): | 484 |
| Cashflow from Operations (₹ Cr): | 149 |
Key Business Highlights
The company's core categories — Ghee, Cheese, and Paneer — recorded volume growth of 8% and value growth of 16% YoY. The flagship brand Gowardhan Ghee commands a 22% market share in the branded cow ghee segment, while the cheese brand "Go" holds a 35% market share in the Cheese category with a #2 position (Source: IMARC Report). Raw material costs remained a headwind, with average milk prices rising to ₹42 per litre in Q4 FY26, reflecting 15% YoY inflation and 4% sequential inflation during the quarter. For the full year FY26, average milk prices witnessed 16% YoY inflation. Despite this, the company managed to pass on cost pressures in a calibrated manner, achieving 8% gross profit growth on a consolidated basis.
| Business Highlight: | Details |
|---|---|
| Core Category Volume Growth (YoY): | 8% |
| Core Category Value Growth (YoY): | 16% |
| Gowardhan Ghee Market Share: | 22% (branded cow ghee) |
| Go Cheese Market Share: | 35% (#2 position) |
| Average Milk Price (Q4 FY26): | ₹42/litre |
| Milk Price Inflation (Q4 FY26 YoY): | 15% |
| Milk Price Inflation (FY26 YoY): | 16% |
The New Age Business, led by Pride of Cows and Avvatar, was a standout performer, crossing the ₹100 crore quarterly revenue milestone in Q4 FY26 — a significant strategic inflection point. In Q4 FY26, the segment grew 109% YoY and contributed 11% to overall turnover. For the full year FY26, the segment recorded 91% YoY growth, contributing 10% to overall business, up from 6% in the prior year. The New Age Business portfolio share has grown from 4% in FY23 to 10% in FY26. Avvatar delivered an 11x scale-up over the past four years, and the consumer response to its protein wafer bar resulted in a 6% share of brand revenue during Q4. On the brand-building front, the company participated in high-impact platforms such as Kaun Banega Crorepati, digital storytelling, and on-ground consumer engagements. Avvatar expanded its reach through influencer engagement, in-flight samplings via partnerships with IndiGo and Akasa Air, and e-sports partnerships.
Management Commentary
Commenting on the performance, Ms. Akshali Shah, Executive Director, Parag Milk Foods, said:
"FY26 has been a meaningful year for Parag Milk Foods with overall topline growth of 11% and bottom line growth of 19% before exceptional items. The year also unfolded New age business growth 91% with quarterly revenues inching up to 100 Cr. Our core categories ghee, cheese and paneer continued to provide stability and scale backed by consumer trust and product quality. Our performance reflects the benefits of focused execution across portfolio premiumisation, calibrated pricing, and cost discipline, while combating hyper inflation in commodity prices. In the coming years, we are focussed to uplift the consumer lifestyle with our protein based offerings. We look forward to explode the power of our four brands with full rigour to scale up strong momentum of growth along with value accretion in form of accelerated profitability."
Dividend Recommendation and ESOP Allotment
The Board of Directors recommended a final dividend of ₹1.10 (One rupee ten paisa only) per equity share of face value ₹10 each for the financial year ended March 31, 2026. This recommendation is subject to approval by shareholders at the ensuing Annual General Meeting, the date of which will be communicated in due course.
In a separate development, the Board allotted 10,00,000 equity shares of face value ₹10 each to the Parag Milk Foods Employees Stock Option Trust under the Employee Stock Option Scheme 2022. These shares rank pari passu with the existing equity shares of the company in all respects. Consequent to this allotment, the issued and paid-up equity share capital of the company increased to ₹126,10,95,540, divided into 12,61,09,554 fully paid-up equity shares of ₹10 each.
Other Board Decisions
The Board also approved the following matters at the May 7, 2026 meeting:
- Cost Auditor Re-appointment: Re-appointment of M/s. Harshad S. Deshpande & Associates as Cost Auditors for financial year 2026-27, subject to shareholder approval. The firm has over 21 years of experience in cost and management accounting, banking and finance, insolvency laws, forensic audit, valuations, indirect tax, and social audit.
- Promoter Re-classification: Re-classification of Vitalia Tradeglob Private Limited, a member of the promoter group holding nil shareholding in the company's total equity share capital, from the 'promoter group' category to the 'public' category.
The company's business activity operates within a single segment, namely 'Milk and Milk Related Products', as per the guiding principles of Ind AS 108 on Operating Segments. All financial results have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013.
Historical Stock Returns for Parag Milk Foods
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.79% | -1.10% | +15.61% | -30.13% | +11.96% | +63.68% |
How will Parag Milk Foods manage margin pressure if milk price inflation continues at double-digit levels into FY27, and what pricing levers remain available without risking volume loss in competitive categories?
Given that the New Age Business (Pride of Cows and Avvatar) has scaled to 10% of overall revenue, what is the company's target contribution and profitability timeline for this segment to meaningfully impact consolidated EBITDA margins?
With Parag Foods Middle East FZE yet to commence operations, what is the expected timeline for activation and how significant could international markets become as a revenue diversification strategy?
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