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.

Parag Milk Foods Limited (PMFL), a leading dairy-FMCG company in India, has reported robust financial results for the quarter ended September 30, marking significant growth across key financial metrics.

Record-Breaking Revenue

The company achieved a milestone by crossing the Rs 1,000 crore mark in quarterly revenue for the first time. PMFL reported a consolidated revenue of Rs 1,008.00 crores, representing a strong 16% year-over-year growth in value and 10% growth in volume.

Profit Surge

Parag Milk Foods witnessed a substantial 56% year-over-year increase in Profit After Tax (PAT), which rose to Rs 46.00 crores.

Financial Highlights

Half-Year Performance

For the half-year period, revenue reached Rs 1,859.00 crores with 14% value growth and 8% volume growth. The Gross Profit Margin improved to 25.8% from 23.6% in the previous year.

Operational Performance

The company handled an average of 14 lakh liters of milk per day during the quarter, with average milk prices at Rs 38.00 per liter.

Product Portfolio Performance

• Core categories, including Ghee, Cheese, and Paneer, witnessed a strong volume growth of 14%.

New Age Business Growth

The company's new age businesses, Pride of Cows and Avvatar, recorded a robust 79% growth and now constitute 9% of the overall business.

Debt Reduction

PMFL has made significant strides in reducing its debt. The company reduced net debt by Rs 125.00 crores during the half-year, bringing consolidated net debt down from Rs 561.00 crores to Rs 436.00 crores.

Corporate Action

The company converted Foreign Currency Convertible Bonds held by IFC, allotting 87,38,713 equity shares at Rs 135.00 per share.

Future Outlook

With a strong performance in Q2, Parag Milk Foods appears well-positioned to capitalize on the growing demand in the Indian dairy sector. The company's focus on core categories and new age businesses, coupled with its debt reduction efforts, sets a positive tone for future growth.