Parag Milk Foods reports US$98.52M revenue growth in Q1 2026

INDIA – Parag Milk Foods, a manufacturer of dairy products, has reported that the revenue from operation rose by 12.34% year-over-year (YoY) to Rs 851.52 crore (US$98.52 million) during Q1 2026, driven by strong volume growth in its dairy portfolio.

Net profit grew by 1.02% to Rs 27.58 crore (US$3.19 million) in Q1 FY26 from Rs 27.30 crore (US$3.16 million) posted in Q1 FY25. Profit before tax in Q1 FY26 stood at Rs 29.18 crore (US$3.38 million), up by 8.83% from Rs 26.81 crore (US$3.10 million) posted in Q1 FY25.

Devendra Shah, Chairman, PMFL, said, “Q1 FY26 has set a promising tone for PMFL as we begin the new financial year. Delivering our highest-ever first-quarter revenue reflects our strategic focus and disciplined execution. Our value-added product portfolio and purpose-led marketing are deepening consumer trust and supporting long-term value creation.”

Earnings before interest, tax, depreciation, and amortization (EBITDA) grew 6% year-on-year to Rs 66 crore (US$7.64 million) in Q1 FY26, up from Rs 62 crore (US$7.17 million) in Q1 FY25. However, the EBITDA margin declined slightly to 7.7% in Q1 FY26 from 8.1% in the same quarter of the previous year.

The company highlighted that the business achieved 5% volume growth YoY in Q1, driven by robust performance in core categories like ghee, cheese, and paneer, which together witnessed a 9% volume growth.

The company also navigated volatility in raw material prices during the quarter. Average milk prices rose 18% YoY to Rs 37 per liter but remained stable quarter-on-quarter (QoQ).

The company handled an average of 16.5 lakh liters of milk per day, a 10% increase QoQ. Despite fluctuations in milk costs, the company was able to pass on the commodity prices with EBITDA growth of 6% YoY.

“At the core of our success lies a deep commitment to backward and forward integration. Our strong relationships with farmers empower us to maintain timely procurement and high quality of milk. We have handled an average of around 16.5 lakh liters of milk per day during Q1, which is 10% higher over the immediate last quarter.

“Our brands are not only rooted in tradition, celebrating the authenticity of Indian dairy, but are also evolving to meet the aspirations of health-conscious households. We continue to deliver nutrition-rich, trustworthy products across the globe,” the chairman added.

Gross profit margins remained steady at 27.4% in Q1 FY26 compared to 27.5% in Q1 FY25 and showed sequential improvement from 25.1% in Q4 FY25. This was driven by an improved product mix and the ability of the company’s brands to command a price premium over competitors.

The company’s new-age businesses, including Pride of Cows and Avvatar, continued their momentum, recording a robust 57% value growth YoY and now constituting 9% of the overall business compared to 6% last year.

The Avvatar brand grew eightfold over the past three quarters, aided by positive response to its recently launched protein wafer bar.

Pride of Cows achieved a remarkable 36% value growth in the premium dairy segment, supported by new product launches and expanded reach through quick commerce platforms.

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