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:

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.

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:

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.

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.

Parag Milk Foods Limited has filed a Monitoring Agency Report for the quarter ended March 31, 2026, pursuant to Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Regulation 162A of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The filing, dated May 8, 2026, pertains to the utilisation of proceeds from the company's preferential issue of Convertible Share Warrants. India Ratings & Research Private Limited served as the Monitoring Agency, and the report confirmed no deviation from the objects of the issue. The statement was reviewed and approved by the company's Audit Committee and Board of Directors, with no adverse comments recorded.

Issue and Fund Raising Details

The company raised INR 40.30 Crore through a Preferential Issue of Convertible Share Warrants. The issue comprised 90,00,000 convertible warrants at a price of INR 179.10 per share warrant (including a premium of INR 169.10). The total issue size stood at INR 161.19 Crores; however, the company received 25% of the value of the convertible warrants as upfront consideration, amounting to INR 44.78 per warrant. The balance 75% (INR 134.33 per warrant) is receivable upon exercise of the conversion option by warrant holders during the 18-month tenure of the warrants. The utilisation of proceeds was guided by the objects outlined in the Extra-ordinary General Meeting (EGM) notice dated April 3, 2025, read with the Corrigendum to the EGM notice dated April 24, 2025.

The key details of the issue and compliance status are summarised below:

Fund Utilisation Progress

As of March 31, 2026, funds totalling INR 40.00 Crore had been utilised against the total raised amount of INR 40.30 Crore, with no deviation or variation reported against any individual object. The Monitoring Agency noted nil utilisation during the quarter itself, with all utilisation having occurred in prior periods. The remaining unutilised balance of INR 0.30 Crore was held in a Union Bank of India account (A/c No. 792701010000012).

The progress in fund utilisation across the defined objects is detailed below:

Monitoring Agency Findings

India Ratings & Research Private Limited confirmed that all utilisation was as per the disclosures in the offer document, based on management undertaking, Statutory Auditor Certificate dated May 4, 2026 issued by Sharp & Tannan, Chartered Accountants (FRN – 109982W), EGM notice with Corrigendum, and relevant bank statements. No deviation from the objects was observed. The Monitoring Agency also confirmed that the means of finance for the disclosed objects had not changed, and no major deviation was observed over earlier monitoring agency reports. No favorable or unfavorable events affecting the viability of the objects were reported.

All four objects — Debt Reduction, Working Capital, Capital Expenditure, and General Corporate Purpose — carry a tentative completion timeline of within 12 months from the date of receipt of funds, and their status remains on-going with no delays reported.

Regulatory Compliance

The filing was signed by Virendra Varma, Company Secretary and Compliance Officer (FCS No. 10520), on behalf of Parag Milk Foods Limited. The Monitoring Agency Report was submitted by Shrikant Dev, Company Secretary at India Ratings & Research Private Limited, on May 8, 2026. The report confirms full adherence to the utilisation framework as disclosed to shareholders, with no modifications to the original objects or allocation amounts reported for the quarter ended March 31, 2026. The intimation along with the Monitoring Agency Report has also been made available on the company's website.