Parag Milk Foods has released the transcript of its earnings conference call held on May 8, 2026, discussing the financial and operational performance for the quarter and financial year ended March 31, 2026. The company reported crossing INR3,800 crores in annual revenue, achieving double-digit growth with a volume growth of 5%. The new age business, comprising brands like Avvatar and Pride of Cows, grew 91% year-on-year and crossed the INR100 crores quarterly revenue mark for the second consecutive quarter.

Financial Performance and Margins

Despite elevated milk prices and inflationary pressure, the company expanded its gross margins to 28% in Q4 FY26, compared to 25.9% in the preceding quarter and 26.7% in the previous year. This expansion was driven by a sharper product portfolio mix, disciplined pricing, and tighter cost controls. The commodity witnessed inflation of 15% year-on-year during Q4, with average milk prices at INR42 per litre. The company navigated the cost push through calibrated pricing and promotion strategies.

Operational Highlights

The core categories' volumes grew by 8% during the year. Management indicated that the new age business now contributes 10% to the overall revenue, with aspirations to reach 20% to 25% over the next 3 to 5 years. The company holds a market share of 14% to 15% in the protein segment within quick commerce and marketplaces. Regarding capacity, the company plans to increase cheese manufacturing capacity from 60 metric tons to 80 metric tons through adjacency expansions rather than greenfield projects.

Guidance and Outlook

For the upcoming financial year, the company provided a capital expenditure guidance of INR60 crores to INR70 crores. Management expressed confidence in achieving double-digit EBITDA margins in the coming years, supported by the new product portfolio and distribution expansion. The company also noted that milk prices are expected to remain stable for the next 3 to 4 months barring significant changes in energy prices.

Key Metrics

Parag Milk Foods , under its sports nutrition brand Avvatar, has announced its entry into India's fast-growing ready-to-drink (RTD) protein beverage segment through a strategic partnership with Tetra Pak. The company launched Avvatar Protein Cold Coffee in India's first Tetra Prisma® Aseptic 250E pack on May 12, 2026, combining convenience, nutrition, and taste in an on-the-go format. Priced at ₹120, the beverage is designed to strengthen Avvatar's portfolio beyond traditional sports nutrition into everyday functional consumption. The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Product Highlights

Avvatar Protein Cold Coffee has been developed to integrate protein into one of India's most familiar daily habits—coffee. The product is available in two variants and is formulated with milk protein, carrying no added sugar and no artificial sweeteners. Key product details are summarised below:

The product is packaged in a distinctive octagonal-shaped pack, which is lightweight, paper-based, and recyclable, reflecting the company's focus on convenience and greener packaging. The Tetra Prisma® Aseptic 250E format offers ergonomic grip and a modern, premium feel, with metallized printing enhancing on-shelf differentiation.

Addressing India's Protein Gap

The launch comes at a time when India's whey protein-based products market is witnessing significant growth. Despite growing awareness around nutrition, nearly 73% of Indians remain protein deficient, creating a significant opportunity for convenient, everyday protein formats. Avvatar Protein Cold Coffee is positioned to bridge this gap by making protein intake more accessible and enjoyable within a familiar consumption habit.

Speaking on the launch, Akshali Shah, Executive Director, Parag Milk Foods, said: "Protein consumption in India is evolving rapidly, but for many consumers it still feels like a conscious effort rather than a natural part of daily life. With Avvatar Protein Cold Coffee, we wanted to bridge that gap by combining the familiarity of cold coffee with the functionality of high-quality protein in a convenient ready-to-drink format. The idea was to create a product that fits effortlessly into modern lifestyles while making everyday protein intake more accessible and enjoyable. We believe the future of nutrition lies in formats that seamlessly blend taste, convenience, and performance."

Tetra Pak Partnership and Packaging Innovation

The collaboration with Tetra Pak brings the Tetra Prisma® Aseptic 250E format to India for the first time in the RTD protein beverage category. Cassio Simoes, Managing Director, Tetra Pak South Asia, commented: "As functional beverages gain momentum in India, packaging is playing a critical role in enabling new categories to scale. The Tetra Prisma® Aseptic 250E format is widely used globally for RTD protein and similar beverages, offering the right balance of convenience, portion size, and safety. In addition, the metallized printing enhances on-shelf differentiation by delivering a premium and distinctive visual appeal. We are pleased to partner with Parag Milk Foods in bringing this innovation to the Indian market and supporting the evolution of protein consumption in the country."

Business Momentum

The product launch is backed by strong performance in Parag Milk Foods' new-age business segment. The company's new-age business segment, including Avvatar, recorded a 91% year-on-year growth in FY26, reflecting increasing consumer demand in the health and nutrition category. The Avvatar Protein Cold Coffee launch represents a further step in the brand's expansion into the broader lifestyle and wellness space, targeting mid-day energy needs and modern consumption patterns.