Parag Milk Foods Achieves Milestone: Quarterly Revenue Surpasses INR 1,000 Crore

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

Metric	Q2 FY26 Performance
Revenue	INR 1,008.00 crores
YoY Growth	16%
Volume Growth	10%
EBITDA	INR 89.00 crores
EBITDA Margin	8.9%
PAT Growth	56% YoY

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

Product Innovation: Parag entered the protein snacking segment with the launch of the Avvatar Protein Wafer Bar, blending taste with functional nutrition.
Geographical Expansion: Pride of Cows expanded its footprint to Chandigarh, enhancing its presence across key metros.
Digital Presence: The company is increasing its availability on leading quick commerce platforms in multiple cities.
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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.35%	-6.05%	+9.41%	+55.88%	+63.37%	+193.77%

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:

Purpose	Allocation (INR Crores)	Utilization (INR Crores)
Debt Reduction	17.50	17.50
Working Capital	7.80	7.80
Capital Expenditure	5.30	0.00
General Corporate Purposes	9.70	9.70
Total	40.30	35.00

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:

There has been no deviation from the stated objects of the issue.
The utilization is in line with the disclosures made in the offer document.
No shareholder approval has been required for any material deviations.
The means of finance for the disclosed objects have not changed.
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.