Milky Mist Dairy Q2 FY27 Earnings Call — Analysis (NSE: MILKYMIST)
Milky Mist delivered 41.6% YoY revenue growth in Q2FY27 with EBITDA margins expanding to 15.2%, driven by value-added dairy momentum and protein category expansion.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Q2FY27 Revenue from operations ₹1,089 Cr ( +41.6% YoY ) . Guidance raised — FY30 high-protein category revenue s… 18-20% . New story: Value-Added FMCG vs Commodity Dairy .
Results
Revenue grew 41.6% YoY to ₹1,089 Cr; EBITDA margin reached 15.2% (+120bps YoY) and PAT surged 174.5% YoY to ₹77.9 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from operations | ₹1,089 Cr | +41.6% | yoy · Q2FY27 |
| Gross Margin | 33.9% | +112bps | yoy · Q2FY27 |
| EBITDA | ₹165.2 Cr | +53.9% | yoy · Q2FY27 |
| EBITDA Margin | 15.2% | +120bps | yoy · Q2FY27 |
| Profit After Tax | ₹77.9 Cr | +174.5% | yoy · Q2FY27 |
| Revenue from operations | ₹2,062.9 Cr | +42.5% | yoy · H1FY27 |
| EBITDA | ₹310 Cr | +62.9% | yoy · H1FY27 |
| Profit After Tax | ₹142.6 Cr | +308.4% | yoy · H1FY27 |
| Net Debt | ₹32.62 Cr | point_in_time · Q2FY27 · Sep-26 |
Guidance
Management guided to sustain 40%+ revenue growth and 15% EBITDA margins in H2FY27, targeting protein products to reach 18-20% of sales over the next 2-3 years.
What management committed to
- We see this [high protein category top-line contribution] moving from 12% to the level of 18% to 20% going forward, at least in next couple of years. — 18-20%, FY30
- We expect [the organized paneer sector] to go up to 25% to 30% in the coming year. — 25-30%, FY28
- We see [cheese capacity] utilization going up by 50% in the next 2 to 3 years' time. — 50% utilization, FY30
- [We] will be able to sustain the 15% EBITDA margins also going forward. — 15%+, long_term
- [We are] exploring the possibilities of putting another 200 tons per day paneer manufacturing facility at our Perundurai plant. — 200 tons per day, design developmental activities are under process
Key themes
Protein expansion and capacity scaling
How the narrative shifted
- Value-Added FMCG vs Commodity Dairy: The business model is validated by 41.6% revenue growth entirely from value-added categories, with the deliberate absence of commodity pouch milk providing margin insulation from milk price volatility.
- Regulatory Shift from Analogue to Pure Dairy: Regulatory scrutiny is accelerating the shift; Milky Mist is the primary beneficiary, commanding 65% of branded paneer and quantifying the organized market share opportunity at 25-30% within a year.
- Integrated Cold Chain and Dedicated Logistics: The cold chain network is the backbone of national reach from a single central facility, now operating at a scale of 45,000+ visi coolers and freezers.
- High-Protein Category Expansion: Protein is the fastest-growing segment with 50%+ gross margins, a new 150 tpd facility commissioned, multiple product launches, and a stated target of 18-20% of total revenue.
- Rising Input Costs and Climate Disruption: Management argues this inflation is pass-through or absorbable due to their value-added model, insulating them vs peers.
- Quick Commerce Channel Acceleration: Quick commerce drove online channels from 11% to 21% of revenue in one year, becoming the primary growth vector for high-protein and daily-use SKUs.
- Pan-India Expansion and Distribution Depth: Milky Mist is actively investing in a second manufacturing hub in Maharashtra with committed milk procurement, while deepening distribution to 4 lakh retail touchpoints.
Operational commentary
- Commissioned new Greek yogurt and Skyr facility at Perundurai with ₹40 Cr investment, scaling capacity from 20 TPD to 150 TPD.
- Launched high-protein lactose-free milk (25g protein per 250ml) in October 2026, targeting Modern Trade and Quick Commerce.
- Paneer production reached 100 TPD (65% utilization on 150 TPD capacity); planning an additional 200 TPD line at Perundurai to scale total paneer capacity to 350 TPD.
- Acquired 50 acres in Baramati, Maharashtra for a new plant; designed to operationalize in 3 years with upstream milk chilling infrastructure currently expanding across 25 villages.
- Quick Commerce and digital channels rose to 21% of revenue in H1FY27 compared to 11% in H1FY26.
- Retail network reached ~400,000 touchpoints, 4,200 distributors, 45,000+ Visi coolers/freezers, and 29,000 ice cream freezers.
Analyst Q&A
Q. Sustainability of gross margins and EBITDA margins given milk procurement cost inflation in H2FY27.
Management confirmed 15% EBITDA margins and current growth will sustain, supported by calibrated price hikes of 10-11%, surplus rains in Tamil Nadu stabilizing milk prices, and >50% gross margin contributions from yogurt and protein segments.
Q. Capex trajectory for full year and beyond across Perundurai and Baramati.
Biswajit Mishra stated FY27 has ~₹70 Cr CWIP with no large fresh capitalization planned; Baramati capex is in early design/approval stage with minimal cash capex from internal accruals.
Q. Channel profitability differences across Modern Trade, Quick Commerce, HoReCa, and B2B.
Margins vary slightly across channels, but overall company maintains ~34% gross margins, with B2B restricted solely to byproduct whey powder sales.
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