Sixth Sense India Opportunities-III, a scheme of Sixth Sense Ventures Trust, has significantly reduced its stake in Parag Milk Foods Limited through a series of share sales. The fund, which is registered as a Category II Alternative Investment Fund with SEBI, disposed of a total of 21,47,587 equity shares in the open market.

Details of the Transaction

The share sales occurred in two phases:

1. 20,29,830 equity shares sold between September 15 and September 23
2. 1,17,757 equity shares sold on November 14

This disposal has triggered a 2% change in shareholding since the last disclosure made on July 30.

Impact on Shareholding

The transaction has resulted in a substantial decrease in Sixth Sense India Opportunities-III's ownership of Parag Milk Foods Limited. Here's a breakdown of the changes:

Additional Information

• The total share capital of Parag Milk Foods Limited remains unchanged at INR 1,25,10,95,540.
• The diluted share capital of the company as of September 30 was INR 1,34,68,85,390.
• Sixth Sense India Opportunities-III is not part of the promoter or promoter group of Parag Milk Foods Limited.

This transaction was reported under Regulation 29(2) read with Regulation 29(3) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The sale represents a significant reduction in Sixth Sense India Opportunities-III's stake in Parag Milk Foods Limited. Investors and market analysts may want to monitor any further changes in the ownership structure of Parag Milk Foods Limited.

Parag Milk Foods Limited , a leading player in India's dairy industry, has reported a significant milestone in its Q2 FY26 financial results, marking a new chapter in the company's growth story.

Record-Breaking Revenue

For the first time in its history, Parag Milk Foods crossed the INR 1,000 crore quarterly revenue mark, reaching INR 1,008.00 crores. This represents a robust 16% year-on-year growth, underpinned by a solid 10% volume growth. The achievement is particularly noteworthy given the challenging environment of 16% milk price inflation during the quarter.

Strong Performance Across Categories

The company's core categories, including ghee, cheese, and paneer, continued to lead the way with a 14% volume growth, now contributing 59% of the total revenue. This growth demonstrates the strength of Parag's brand portfolio and its ability to maintain market share in competitive segments.

New Age Business Expansion

Parag's new age business, comprising Pride of Cows and Avvatar brands, showed remarkable growth of 79% year-on-year. These brands now account for 9% of the total turnover, up from 6% last year. The Avvatar brand, in particular, has seen exponential growth, expanding six-fold over the past three first halves.

Financial Highlights

Debt Reduction and Cash Flow Generation

The company has made significant strides in optimizing its capital structure. During the quarter, the consolidated net debt reduced by INR 125.00 crores to INR 436.00 crores. This deleveraging has strengthened Parag's financial position, with net debt-to-EBITDA levels improving to 1.4x and net debt to equity to 0.4x.

In the first half of FY26, Parag generated INR 99.00 crores in operating cash flow, indicating healthy cash flow momentum.

Strategic Initiatives

1. Product Innovation: Parag entered the protein snacking segment with the launch of the Avvatar Protein Wafer Bar, blending taste with functional nutrition.
2. Geographical Expansion: Pride of Cows expanded its footprint to Chandigarh, enhancing its presence across key metros.
3. Digital Presence: The company is increasing its availability on leading quick commerce platforms in multiple cities.
4. Brand Building: Continued successful associations with popular TV shows and digital platforms to enhance brand visibility and engagement.

Outlook

While facing challenges such as milk price inflation, Parag Milk Foods has demonstrated resilience and adaptability. The company's focus on value-added products, expansion of its new age business, and strategic brand-building initiatives position it well for continued growth in the evolving dairy market.

As the industry witnesses a shift from unorganized to organized segments, Parag's diverse product portfolio and strong brand presence provide a solid foundation for capturing emerging opportunities in the Indian dairy sector.

Management remains committed to its vision of evolving from a dairy FMCG business into a health and nutrition company, with a clear focus on sustainable, profitable growth.