Parag Milk Foods Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Parag Milk Foods Ltd filed with BSE on 13 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
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.
Numbers mentioned
Revenue: INR945 crores (Q1 FY27)
p. 4
“We delivered our highest ever Q1 revenue of INR945 crores, representing 11% year-on-year value growth and 3% volume growth.”
Akshali Shah, page 4 of the filed PDF · View the filing
EBITDA: INR70 crores (Q1 FY27)
p. 4
“EBITDA stood at INR70 crores.”
Akshali Shah, page 4 of the filed PDF · View the filing
EBITDA margin: 7.4% (Q1 FY27)
p. 4
“Absolute EBITDA grew by 6% year-on-year, while the EBITDA margin was 7.4% compared to 7.7% last year.”
Akshali Shah, page 4 of the filed PDF · View the filing
Milk price: INR42 per litre (Q1 FY27)
p. 4
“The milk prices at INR42 per litre during the quarter, 13% higher year-on-year and flat sequentially.”
Akshali Shah, page 4 of the filed PDF · View the filing
Gross profit: INR258 crores (Q1 FY27)
p. 4
“As a result, the gross profit increased by 11% to INR258 crores, in line with the overall revenue growth, demonstrating that the cost push has been passed on.”
Akshali Shah, page 4 of the filed PDF · View the filing
Flagship categories share of revenue: 61% (Q1 FY27)
p. 4
“Our flagship categories, that is ghee, cheese, paneer and dahi, continue to form the backbone of the business contributing to 61% of our Q1 revenue.”
Akshali Shah, page 4 of the filed PDF · View the filing
Flagship categories volume growth: -2% (Q1 FY27)
p. 4
“The flagship categories volume declined by 2% year-on-year, mainly due to a transient slowdown.”
Akshali Shah, page 4 of the filed PDF · View the filing
Go Cheese market share: 35%
p. 4
“Go Cheese has 35% market share, and we are #2 in the cheese category in India.”
Akshali Shah, page 4 of the filed PDF · View the filing
New age business growth: 59% (Q1 FY27 year-on-year)
p. 4
“The new age business, that is Pride of Cows and Avvatar, grew by 59% year-on-year in this quarter and now contributes to around 13% of our overall revenue versus 9% in the Q1 last year.”
Akshali Shah, page 4 of the filed PDF · View the filing
Gross margin: 27.3% (Q1 FY27)
p. 9
“So with respect to gross margin, if you were to look at sequentially, which is from 28% to now 27.3%, we are almost 70 basis points down approximately.”
Ankit Jain, page 9 of the filed PDF · View the filing
Website traffic increase: almost 200% (over the last 2 months)
p. 8
“And over the last 2 months, it's gone up by almost 200%.”
Akshali Shah, page 8 of the filed PDF · View the filing
Avvatar distribution mix (quick-com/e-com/website vs retail): 75% / 25%
p. 17
“Our revenues from quick-com, e-com and our website is 75% and 25% is coming from the traditional retail or specialized protein outlets.”
Akshali Shah, page 17 of the filed PDF · View the filing
Renewable energy investment: INR4.6 crores
p. 15
“But what we have, if you refer to even last annual report, it is INR4.6 crores is the investment value and not INR50 crores.”
Ankit Jain, page 15 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Sales growth — more than 10% · FY27
stated firmly by Rahul Kumar Srivastava
p. 6
“So certainly, this year, we'll be breaking this 10% growth benchmark.”
Rahul Kumar Srivastava, page 6 of the filed PDF · View the filing
Cheese production capacity — 120 metric tons per day from 60 metric tons per day · next 1.5 years
stated firmly by Akshali Shah
p. 4
“We are doubling our cheese production capacity from 60 metric tons per day to 120 metric tons per day over the next 1.5 years.”
Akshali Shah, page 4 of the filed PDF · View the filing
Distribution outlets — more than 1.5 million outlets · next 3 years
stated as an aspiration by Akshali Shah
p. 7
“And we've given a guideline saying that in the next 3 years, we want to be available in more than 1.5 million outlets, and we are reaching towards that and we are working towards that road map.”
Akshali Shah, page 7 of the filed PDF · View the filing
B2C flagship category volume growth — double digit
stated as an aspiration by Ankit Jain
p. 11
“The aspiration is to, of course, grow double digit. We are working on it.”
Ankit Jain, page 11 of the filed PDF · View the filing
Milk prices — coming months
stated conditionally by Rahul Kumar Srivastava
p. 16
“Maybe there will be very slight increase in coming months because of the onset of monsoon, because of seasonality milk production goes down a little bit because of the humidity and some other factors, environmental factors.”
Rahul Kumar Srivastava, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said growth will exceed 10% this year given a strong Q1 and expected festive-season demand in subsequent quarters.
Answered by Rahul Kumar Srivastava
Asked by Kiran: Whether Parag can break out of the 10% sales growth band and grow 15% in FY27, or remain a 10% grower given muted Q1 sales.
p. 6
“So obviously, the second quarter and third quarter with a lot of festive season and demand, certainly, we are going to grow more than 10%.”
Rahul Kumar Srivastava, page 6 of the filed PDF · View the filing
Management said these are channel-specific products placed deliberately in outlets with high throughput such as vending machines and pharmacies rather than broad distribution.
Answered by Rahul Kumar Srivastava
Asked by Kanishk Gupta: Why higher-margin new age products like Go Cheese and Avvatar bars/coffee are less available in stores where Gowardhan Ghee is widely stocked.
p. 7
“So we are present in the relevant outlets, which we know that these products are having very good throughput on those outlets, and we are working on those lines rather than spreading kind of a guerrilla distribution there.”
Rahul Kumar Srivastava, page 7 of the filed PDF · View the filing
Management declined to share commercial specifics but noted the campaign was aimed at brand awareness and cited a rise in website traffic and Google searches.
Answered by Ankit Jain
Asked by Priyanshu Jain: Details on the India's Got Latent association with Samay Raina, including cost, timeline and ROI.
p. 8
“We cannot share the specific nitty-gritties what you are asking about with respect to how much is the cost, how much is the time line and how is the ROI.”
Ankit Jain, page 8 of the filed PDF · View the filing
Management explained that Dahi moved into the Flagship category and that Others now mainly comprises beverages, UHT milk and one-off items like state incentives that have declined post GST changes.
Answered by Ankit Jain
Asked by Kavina Desai: Why the 'Others' category revenue declined 46% despite a strong summer season.
p. 9
“For example, post the GST changes in September 2025, the PSI income has substantially reduced because the GST rate has changed for ghee and cheese products like from 12% to 5%.”
Ankit Jain, page 9 of the filed PDF · View the filing
Management said the mix improvement was offset by rising milk costs and inventory lag, and that the blended portfolio has fully passed through cost increases.
Answered by Ankit Jain
Asked by Debashish Neogi: Why operating margins have remained stagnant despite improved new age mix and price increases.
p. 10
“On a weighted average portfolio level, if you look at Y-o-Y, if the sales growth is 11%, gross margin growth is 11%, this clearly demonstrates that the entire cost push has been passed on as a blended portfolio.”
Ankit Jain, page 10 of the filed PDF · View the filing
Management clarified there is no B2C degrowth; the decline is entirely from B2B where they forgo volumes from customers negotiating aggressively on price to protect profitability.
Answered by Rahul Kumar Srivastava
Asked by Viraj: Why core category volumes declined despite distribution expansion into new markets.
p. 10
“So overall, there might be a degrowth of minus 2%, but we don't have any degrowth in B2C category, which is basically arising from our better distribution in the existing market as well as the new markets.”
Rahul Kumar Srivastava, page 10 of the filed PDF · View the filing
Management said B2C growth in core categories is running at high single digit to close to double digit, driven by a deliberate move away from certain low-margin B2B channels.
Answered by Ankit Jain
Asked by Anil Desai: How B2C volumes are trending and whether the company will return to double-digit volume growth in core categories.
p. 11
“But on the guidance, I can definitely share that the B2C category in core categories has grown towards high single digit or close to double digit.”
Ankit Jain, page 11 of the filed PDF · View the filing
Management said the increase is a structural demand-supply gap driven by rising global whey protein demand linked to fat-reduction medicines.
Answered by Rahul Kumar Srivastava
Asked by Rupal: Whether the recent whey protein price increase will directly hit PBT, and whether the price rise is structural or temporary.
p. 11
“So I would say it's not a temporary, it will be a, kind of, a futuristic, kind of, demand-supply gap in our protein segment.”
Rahul Kumar Srivastava, page 11 of the filed PDF · View the filing
Management said landed milk cost is the same whether procured directly or via agents, and that EBITDA margin differences reflect heavy brand investment; other income fluctuates due to biological asset fair valuation and one-off asset sales.
Answered by Rahul Kumar Srivastava
Asked by Arya Shah: How margins compare to competitors given procurement mix and B2B exposure, and what drives fluctuations in other income.
p. 12
“So for your information, the landing price to our dairy for both are same.”
Rahul Kumar Srivastava, page 12 of the filed PDF · View the filing
Management confirmed the expansion is finished cheese capacity from 60 to 120 metric tons per day by around March 2028, alongside a parallel increase in milk procurement.
Answered by Rahul Kumar Srivastava
Asked by Swapnil Gupta: Whether the cheese capacity expansion refers to finished cheese output or milk processed, and current capacity utilization.
p. 16
“So maybe by March '28, we'll be able to make our capacity to 120 metric tons.”
Rahul Kumar Srivastava, page 16 of the filed PDF · View the filing
Management said the FDA action targets analogue paneer made with vegetable fat, which benefits Parag since its paneer is made entirely with milk fat.
Answered by Rahul Kumar Srivastava
Asked by Amish Kanani: Impact of Maharashtra FDA crackdowns on adulterated paneer for Parag's business.
p. 15
“So in that case, it's good for us to at least provide the good quality paneer to the consumer because then the bad quality is banned.”
Rahul Kumar Srivastava, page 15 of the filed PDF · View the filing
Risks flagged
Rising milk prices increasing input costs
p. 4
“The milk prices at INR42 per litre during the quarter, 13% higher year-on-year and flat sequentially.”
Akshali Shah, page 4 of the filed PDF · View the filing
PAT decline due to higher current tax impact
p. 4
“The PBT remained broadly flat, while the PAT declined by 20%, primarily due to the current tax impact in this year.”
Akshali Shah, page 4 of the filed PDF · View the filing
Transient slowdown in flagship category volumes, particularly B2B
p. 4
“The flagship categories volume declined by 2% year-on-year, mainly due to a transient slowdown.”
Akshali Shah, page 4 of the filed PDF · View the filing
Reduced state incentive income following GST rate changes
p. 9
“For example, post the GST changes in September 2025, the PSI income has substantially reduced because the GST rate has changed for ghee and cheese products like from 12% to 5%.”
Ankit Jain, page 9 of the filed PDF · View the filing
Foregoing B2B volumes to protect profitability amid pricing pressure from customers
p. 10
“Though B2B, we have to maintain our profitability and all these things. So sometimes we forego some volumes from the few customers, which are negotiating very hard and we don't go to that kind of pricing to maintain our profitability.”
Rahul Kumar Srivastava, page 10 of the filed PDF · View the filing
Uncertainty in future milk price movements due to dynamic commodity environment
p. 17
“Milk prices, as we speak, are stable, but we are in a dynamic environment, and commodity prices can fluctuate.”
Akshali Shah, page 17 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.