Parag Milk Foods reports US$111.4M revenue in Q3 FY 2026

INDIA – Parag Milk Foods’ shares fell 7.72% to US$2.67 (₹242.50) after the company reported an 18% decline in consolidated net profit to US$3.30 million (₹30 crore) in Q3 FY26.

On a YoY basis in Q3 FY26, gross profit increased to US$28.8 million (Rs 262 crore), up 9%. However, gross margin declined by nearly 130 basis points, from 27.2% to 25.9% due to cost inflation offset by favourable portfolio mix.

EBITDA declined 5% YoY to Rs 76 crore as against Rs 80 crore, with EBITDA margin contracting by 150 basis points to 7.5%, largely tracking the gross margin compression.

Profit before tax in Q3 FY26 stood at US$3.63 million (Rs 33 crore), down by 14% from US$4.18 million (Rs 38 crore) recorded in Q3 FY25.

Akshali Shah, executive director, PMFL, said: Our value-added dairy engine continues to power ahead, reaffirming our dominance in core categories. At the same time, the acceleration of our New Age Business comprising of Pride of Cows and Avvatar, signals the emergence of Parag as a truly modern, consumer-centric FMCG brands driving premiumization with superior product offerings.

The headwinds of commodity inflation are likely to continue in the foreseeable future. The company is well poised to navigate through these challenging times with the power of its brands, superior offerings and improved product mix.

In the second quarter of the 2025-2026, the company reported 56.28 per cent surge in consolidated net profit to US$514,482 (Rs 45.65 crore).

Parag Milk’s revenue rose 15.7% year-on-year to US$11.37 million (₹1,007.9 crore) from US$9.83 million (₹871.3 crore), while net profit jumped 56.3% year-on-year to ₹45.7 crore from ₹29.2 crore.

EBITDA increased 18% to US$803,136 (₹71.2 crore) compared to $681,312 (₹60.4 crore) a year earlier. Margins expanded slightly to 7.1% from 6.9% in the same period. Gross margins expanded to 25.8% from 23.6% a year ago.

The company reported 10% year-on-year volume growth, led by strong performance in its core categories of ghee, cheese, and paneer, which saw 23% value growth and 14% volume growth.

Core categories contributed 59% to overall revenue. Premium brands such as Pride of Cows and Avvatar accounted for 9% of the total business, while new-age business revenue jumped 79% year-on-year, reflecting continued traction in value-added and premium segments.

Parag Milk shares are now trading 13.52% higher at US$4.03 (₹356.95). On a year-to-date basis, the stock has jumped 90%.

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