Parag Milk Foods Limited has reported no deviation in the utilization of funds raised through its preferential issue of convertible share warrants, according to the monitoring agency report for the quarter ended September 30, 2025.

Key Highlights

• The company issued 90,00,000 convertible warrants at INR 179.10 per warrant on May 23, 2025.
• Total issue size: INR 161.19 crores
• Amount received as of September 30, 2025: INR 40.30 crores (25% upfront consideration)

Fund Allocation and Utilization

The funds received have been allocated as follows:

Unutilized Funds

The remaining INR 5.30 crores of unutilized funds have been invested as follows:

• Fixed Deposits with Jana Small Finance Bank: INR 5.00 crores
• Balance in Union Bank of India account: INR 0.30 crores

Monitoring Agency Findings

India Ratings & Research Private Limited, serving as the monitoring agency, reported that:

1. There has been no deviation from the stated objects of the issue.
2. The utilization is in line with the disclosures made in the offer document.
3. No shareholder approval has been required for any material deviations.
4. The means of finance for the disclosed objects have not changed.
5. All necessary government/statutory approvals related to the fund utilization have been obtained.

Company Statement

Virendra Varma, Company Secretary and Compliance Officer of Parag Milk Foods Limited, stated, "We confirm that during the quarter ended on September 30, 2025, there was no deviation or variation in the utilisation of proceeds received from issuance of Convertible Share Warrants from the objects stated in the notice dated April 3, 2025 calling Extra-ordinary General Meeting ('EGM') on May 3, 2025 read with Corrigendum to EGM notice, dated April 24, 2025."

Future Outlook

The company has indicated that the utilization of funds for all stated objectives, including debt reduction, working capital, capital expenditure, and general corporate purposes, is ongoing and expected to be completed within 12 months from the date of receipt of funds.

This report demonstrates the company's commitment to transparent financial management and adherence to regulatory requirements. The proper utilization of funds as per the stated objectives may contribute to the company's financial stability and growth prospects in the coming quarters.

Parag Milk Foods Limited (PMFL), a leading dairy-FMCG company in India, has announced its financial results for the second quarter of fiscal year 2026, marking a significant milestone in the company's growth trajectory.

Record-Breaking Revenue

The company reported its highest-ever quarterly revenue, crossing the ₹1,000 crore mark. For Q2 FY26, PMFL posted a consolidated revenue of ₹1,008.00 crore, representing a robust 16% year-over-year growth. This growth was backed by a strong 10% increase in underlying volume, with core categories growing by 14% in volumes.

Profitability Improvements

Gross Profit Margin (GPM) for the quarter stood at 25.8%, compared to 23.6% in the same quarter last year. The EBITDA grew by 16% year-over-year to ₹89.00 crore, with the EBITDA margin maintained at 8.9% versus 8.8% in Q2 FY25.

Profit After Tax (PAT) saw a significant jump of 56% year-over-year, reaching ₹46.00 crore for the quarter.

Debt Reduction and Financial Position

PMFL made strides in improving its financial position during the quarter. The company issued equity shares to IFC corresponding to the conversion of outstanding FCCBs. As a result, the consolidated net debt reduced from ₹561.00 crore as of March 31, 2025, to ₹436.00 crore as of September 30, 2025. This deleveraging improved the debt to EBITDA ratio to 1.4 times, while the net debt to equity ratio decreased to 0.4 times.

Business Highlights

Core Categories Performance

The flagship brand Gowardhan Ghee commands a 22% market share in the branded cow ghee segment, while the brand "Go Cheese" holds a 35% market share in the Cheese category.

New Age Businesses

The company's new age businesses, including Pride of Cows and Avvatar, recorded a robust 79% growth year-over-year during Q2. These now constitute 9% of the overall business, up from 6% last year.

Product Innovation

PMFL launched new products, including the Avvatar protein wafer bar in three variants and Avvatar Fuel whey.

Expansion

The company expanded its presence for Pride of Cows to Chandigarh and increased its reach through quick commerce in multiple cities.

Market Dynamics

The dairy commodity market experienced inflation of 16% year-over-year and 2% sequentially during Q2 FY26, with average milk prices increasing to ₹38.00 per liter. Despite this volatility, PMFL managed to pass on the cost push while maintaining its EBITDA margin.

Future Outlook

Akshali Shah, Executive Director of PMFL, commented on the results: "Q2FY26 has been a stupendous quarter, surpassing the ₹1000 Cr quarterly revenue milestone creating a history for the company. This is a moment of pride for all our stakeholders and reinforces our business fundamentals and consumer trust."

She added, "We are poised for the next momentum of business growth with distribution expansion, new product development, and brand building initiatives."

The company remains optimistic about future growth, citing positive business sentiments and consumers' willingness to spend on branded consumer products. PMFL also welcomed the Government of India's GST 2.0 reform, expecting the rate reduction in the dairy sector to enhance affordability and boost demand for organized dairy products.

As Parag Milk Foods Limited continues to strengthen its position in the dairy-FMCG sector, investors and industry observers will be watching closely to see how the company capitalizes on its current momentum and navigates the evolving market landscape.