Parag Milk Foods Ltd — earnings calls

Parag Milk Foods reported its highest ever Q1 revenue of Rs 945 crores in Q1 FY27, up 11% year-on-year in value terms with 3% volume growth, while EBITDA margin was 7.4% versus 7.7% a year earlier. Management said milk prices averaged Rs 42 per litre, 13% higher year-on-year, and that the cost increase was passed on through calibrated pricing and mix changes, keeping gross margins broadly stable. The new age business, comprising Pride of Cows and Avvatar, grew 59% year-on-year and now contributes around 13% of revenue, while flagship categories (ghee, cheese, paneer, dahi) saw a 2% volume decline attributed to a transient slowdown in B2B.

Parag Milk Foods reported annual revenue crossing INR3,800 crores in FY26 with volume growth of 5%, while the New Age business (Avvatar and Pride of Cows) grew 91% for the year and crossed INR100 crores in quarterly revenue for the second consecutive quarter in Q4. Gross margin expanded to 28% in Q4 FY26 from 25.9% in Q3, despite milk price inflation of 15% year-on-year and 4% sequentially to an average of INR42 per litre. Management attributed the margin improvement to portfolio mix, pricing and promotion strategy, while core category volumes declined in Q4 due to lower institutional and export sales in the base year.