Parag Milk Foods Q1 FY27 Results (NSE: PARAGMILK)
Signal: Growth reaccelerated
The read
The key inflection is portfolio mix rather than broad-based volume acceleration: revenue grew 10.9% YoY on 3% volume growth, New Age revenue accelerated 59% to ₹118 Cr, and gross margin held at 27.3% despite 13% milk-cost inflation, but EBITDA margin still slipped 30bps to 7.4% and flagship volumes declined 2%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹944.57 Cr | 10.9% | N/A |
| EBIT | ₹51.19 Cr | N/A | |
| EPS | ₹1.76 | N/A | |
| EBIT margin | 7.4% |
P&L walk
Revenue of ₹944.57 Cr grew 10.9% YoY on 11% value growth versus 3% volume growth, while gross margin was broadly resilient at 27.3% despite 13% YoY milk-price inflation; EBITDA rose 6% to ₹69.66 Cr but margin contracted 30bps to 7.4%, reflecting incomplete cost pass-through and weaker flagship volumes.
Segments
The filing does not provide a formal segment table, but the disclosed portfolio split shows New Age Business revenue of ₹118 Cr, up 59% YoY and contributing 13% versus 9% LY, while flagship-category volumes declined 2% YoY despite 10% value growth.
Key positives
- Revenue reached ₹944.57 Cr, up 10.9% YoY, with 11% value growth versus 3% volume growth, indicating positive pricing and mix contribution.
- Gross margin was maintained at 27.3% versus 27.4% YoY despite 13% YoY milk-price inflation, evidencing partial pricing and portfolio-mix mitigation.
- New Age Business revenue rose 59% YoY to ₹118 Cr and increased its revenue contribution to 13% from 9% LY.
- The company approved an additional 60MT/day cheese capacity expansion to approximately 120MT/day, supporting the higher-growth cheese and whey-protein strategy.
Key concerns
- Flagship-category volumes declined 2% YoY and were identified as the main drag on overall growth, despite 10% value growth.
- EBITDA margin declined to 7.4% from 7.7% YoY and gross margin fell 70bps sequentially to 27.3%, showing that measured price increases did not fully offset higher input costs.
- Milk prices increased 13% YoY and the company also cited elevated costs across the dairy value chain, leaving earnings sensitive to further commodity inflation.
- The New Age portfolio contributed 13% of revenue, but its 59% growth must continue to scale materially to offset weaker flagship-category volume performance.
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