Parag Milk Foods Q2 FY27 Results (NSE: PARAGMILK)
Signal: Growth reaccelerated
The read
The quarter marks a revenue acceleration to ₹1,240.89 crore, +23.1% YoY versus +10.9% in Q1FY27, and an operating-margin recovery to about 8.0% from 7.0% in Q1FY27; however, PAT still fell 8.0% because the prior-year ₹18.03 crore other-income contribution normalized to ₹1.89 crore and finance costs rose 32.7%, leaving the earnings trajectory dependent on sustained operating improvement rather than treasury income.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,240.89 Cr | +23.1% | +31.4% |
| EBIT | ₹79.86 Cr | +52.1% | |
| Net profit | ₹42 Cr | -8.0% | |
| EPS | ₹3.36 | -12.3% | |
| EBIT margin | 8.0% |
P&L walk
Consolidated revenue accelerated to ₹1,240.89 crore, +23.1% YoY and +31.4% QoQ, while gross margin was broadly stable at 26.0%; estimated EBITDA rose to ₹98.71 crore and margin expanded to about 8.0%, but PAT declined 8.0% to ₹42.00 crore because other income fell to ₹1.89 crore from ₹18.03 crore and finance costs rose 32.7%.
Key positives
- Consolidated revenue reached ₹1,240.89 crore, +23.1% YoY and +31.4% QoQ, accelerating from Q1FY27’s 10.9% YoY growth.
- Estimated EBITDA rose 38.6% YoY to about ₹98.71 crore versus 23.1% revenue growth, with margin improving 88bps to about 8.0%.
- Gross margin held broadly stable at 26.0% YoY despite revenue scaling, while employee costs rose only 9.5% to ₹46.75 crore.
- H1 revenue increased 17.5% YoY to ₹2,185.46 crore, indicating a stronger first-half growth run-rate than FY26’s recent quarterly trajectory.
Key concerns
- PAT fell 8.0% YoY to ₹42.00 crore despite 23.1% revenue growth because other income fell from ₹18.03 crore to ₹1.89 crore and finance costs increased 32.7%.
- Finance costs of ₹26.58 crore grew faster than revenue and rose 21.4% QoQ, constraining profit conversion.
- Basic EPS declined 12.3% to ₹3.36, lagging the 8.0% PAT decline; paid-up equity capital also increased from ₹124.94 crore to ₹125.14 crore.
- Standalone inventories were ₹872.81 crore and trade receivables ₹274.85 crore at 30 September 2026; the filing does not provide comparative consolidated working-capital days.
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