Parag Milk Foods Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Parag Milk Foods Ltd filed with BSE on 14 May 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 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.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Annual revenue: INR3,800 crores (FY26)
p. 3
“We crossed INR3,800 crores in annual revenue, growing in double digits with volume growth of 5%.”
Akshali Shah, page 3 of the filed PDF · View the filing
Gross margin: 28% (Q4 FY26)
p. 4
“we were able to expand our gross margins to 28% in Q4”
Akshali Shah, page 4 of the filed PDF · View the filing
Gross margin: 25.9% (Q3 FY26)
p. 4
“the company has been able to improve the percentage gross margins to 28% for Q4 versus 25.9% for Q3.”
Akshali Shah, page 4 of the filed PDF · View the filing
Average milk price: INR42 per litre (Q4 FY26)
p. 4
“The commodity witnessed inflation of 15% year-on-year and 4% sequentially during Q4 FY26 with average milk prices at INR42 per litre.”
Akshali Shah, page 4 of the filed PDF · View the filing
Gross margin: 26.7% (FY25)
p. 4
“In an inflationary environment, the percentage of gross margin last year was 26.7%, which is now 28% for Q4 FY26.”
Akshali Shah, page 4 of the filed PDF · View the filing
New Age business contribution: 10% (Q4 FY26)
p. 4
“Its contribution to our overall business has moved to a meaningful double digit at 10%.”
Akshali Shah, page 4 of the filed PDF · View the filing
Protein segment market share (quick commerce/marketplaces): 14% to 15%
p. 5
“we are somewhere between 14% to 15% market share in the protein segment”
Akshali Shah, page 5 of the filed PDF · View the filing
Cheese and ghee manufacturing capacity: 110 metric tons
p. 5
“See overall ghee manufacturing and cheese manufacturing capacity is around 110 metric tons you would have seen in our investment presentation.”
Ankit Jain, page 5 of the filed PDF · View the filing
Incentive income: INR46 crores (FY26)
p. 8
“So overall incentive number for current year is almost INR46 crores as against INR88 crores last year, mainly on account of 2 reasons.”
Ankit Jain, page 8 of the filed PDF · View the filing
Incentive income: INR88 crores (FY25)
p. 8
“So overall incentive number for current year is almost INR46 crores as against INR88 crores last year, mainly on account of 2 reasons.”
Ankit Jain, page 8 of the filed PDF · View the filing
Core categories volume decline: 3% (Q4 FY26)
p. 7
“In core categories itself, there is a volume decline of 3%.”
Ankit Jain, page 7 of the filed PDF · View the filing
Overall branded business volume decline: 5% (Q4 FY26)
p. 7
“there is a volume decline of 5% almost for the quarter 4 as an overall branded business”
Ankit Jain, page 7 of the filed PDF · View the filing
Core categories volume growth: 12% (YTD December FY26)
p. 10
“in YTD December itself, we had a 12% volume growth.”
Ankit Jain, page 10 of the filed PDF · View the filing
EBITDA margin: 8.1% (FY26)
p. 11
“we have dipped from 8.5% to almost 8.1%, mainly on account of the inflationary environment during the year.”
Ankit Jain, page 11 of the filed PDF · View the filing
Inventory increase: INR150-odd crores
p. 13
“the inventory has increased by almost INR150-odd crores and purely on account of rate variance at the overall level.”
Ankit Jain, page 13 of the filed PDF · View the filing
Executive director remuneration increase: INR9-odd crores (FY26)
p. 15
“So overall, the change in the remuneration for executive directors is roughly around INR9-odd crores.”
Ankit Jain, page 15 of the filed PDF · View the filing
ESOP cost impact: INR5 crores (FY26)
p. 15
“Secondly, the overall impact on account of ESOP is almost around INR5 crores.”
Ankit Jain, page 15 of the filed PDF · View the filing
Pride of Cows milk price: INR120 per litre to INR135 per litre (Q4 FY26)
p. 14
“We have increased prices in Pride of Cows from INR120 per litre to INR135 a litre.”
Ankit Jain, page 14 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.
New Age business revenue contribution — 20% to 25% of overall revenues · next 3 to 5 years
stated as an aspiration by Akshali Shah
p. 5
“In the next 3 to 5 years, we see this business contributing to around 20% to 25% of the overall revenues.”
Akshali Shah, page 5 of the filed PDF · View the filing
Cheese manufacturing capacity — 80 metric tons from 60 metric tons
stated firmly by Ankit Jain
p. 5
“So the overall plan is that we increase our capacity of cheese from 60 metric tons to 80 metric tons and then we take it ahead.”
Ankit Jain, page 5 of the filed PDF · View the filing
Core categories volume growth — double-digit volume growth
stated as an aspiration by Ankit Jain
p. 8
“Overall, we are looking at a double-digit volume growth for core categories. That's what we aspire to.”
Ankit Jain, page 8 of the filed PDF · View the filing
EBITDA margin — double-digit margins · coming years
stated as an aspiration by Ankit Jain
p. 11
“That's what we aim for, we aspire for in the coming years we have to move to double digit.”
Ankit Jain, page 11 of the filed PDF · View the filing
FY27 capex — INR60 crores to INR70 crores · FY27
stated firmly by Ankit Jain
p. 13
“But as a guidance for the next year, we will definitely give a guidance of INR60 crores to INR70 crores of capex, dairy being capital intensive.”
Ankit Jain, page 13 of the filed PDF · View the filing
Milk procurement price — stable at current levels · next 3 to 4 months
stated conditionally by Rahul Kumar Srivastava
p. 13
“So if things are stable from the war front and all and energy prices are stable, then we see the milk prices also stable.”
Rahul Kumar Srivastava, page 13 of the filed PDF · View the filing
New Age business revenue — INR1,000 crores · 3 to 5 years
stated as an aspiration by Akshali Shah
p. 15
“this will somewhere around INR1,000 crores.”
Akshali Shah, page 15 of the filed PDF · View the filing
Overall company revenue — INR10,000 crores
stated as an aspiration by Ankit Jain
p. 6
“See we are working on our strategy for INR10,000 crores road map.”
Ankit Jain, page 6 of the filed PDF · View the filing
Gross margin — 27%, 28% · coming quarters
stated conditionally by Ankit Jain
p. 14
“So all in put together, we see that we should be able to maintain our gross margins to wherever we are around 27%, 28%.”
Ankit Jain, page 14 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 there is no reliable market data for the still-unorganized protein category, but estimated 14-15% share in quick commerce and marketplace channels, excluding significant sales from its own website.
Answered by Akshali Shah
Asked by Rehan Saiyyed: What is Avvatar's current market share in sports nutrition and how does it differentiate versus international whey players?
p. 5
“we are somewhere between 14% to 15% market share in the protein segment”
Akshali Shah, page 5 of the filed PDF · View the filing
Management explained that promotions were withdrawn from Pride of Cows and there was a price transition in Avvatar during Q4, causing a transitional gap in sequential growth.
Answered by Ankit Jain
Asked by Debashish Neogi: Why has the New Age business been stagnant sequentially despite strong e-commerce growth?
p. 7
“During quarter 4 of FY26, we withdrew certain promotions specifically from Pride of Cows. We had price transition in Avvatar.”
Ankit Jain, page 7 of the filed PDF · View the filing
Management attributed the decline to lower institutional and export sales versus the base year and said they do not give yearly guidance but aspire to double-digit volume growth in core categories.
Answered by Ankit Jain
Asked by Dhwanil Desai: Why did core category volume growth decline sharply in Q4, and will pricing strategy be recalibrated?
p. 7
“the decline is mainly due to the institutional and export sales in the base year, specifically in the core categories itself, which has led to basic decline in the overall growth”
Ankit Jain, page 7 of the filed PDF · View the filing
Management cited appraisal cycle timing, a director remuneration change effective Q4, increased ESOP expense, and talent additions across business verticals as reasons, noting some of these are one-offs.
Answered by Ankit Jain
Asked by Viraj Mehta: Why have employee expenses grown over 20% while sales growth has tapered, and is this a new sustainable run rate?
p. 9
“there are, of course, one-offs even in the current quarter. I understand your question that how should you presume for the year going ahead.”
Ankit Jain, page 9 of the filed PDF · View the filing
Management said gross margin improved sequentially due to favorable mix but is offset by inflationary pass-through timing, and expressed confidence in reaching double-digit EBITDA margins over time without specifying a date.
Answered by Ankit Jain
Asked by Viraj Mehta: Will gross margin improvement eventually flow through to EBITDA margin expansion?
p. 11
“we are confident that with the strategy which we have put in for improving with the new product portfolio, increasing the new age business, focusing on core categories with distribution expansion and giving a backbone to the business for the profit margins, we – are confident -- we are fairly confident that we will inch up to double-digit margins.”
Ankit Jain, page 11 of the filed PDF · View the filing
Management said price increases were taken across Ghee, liquid milk, Pride of Cows and Avvatar, and that gross profit growth has surpassed volume growth, indicating pricing power beyond mix effects.
Answered by Ankit Jain
Asked by Kiran D: Is the gross margin improvement simply a mathematical effect of lower institutional/export sales mix?
p. 14
“it is clearly evident that our gross profit growth have surpassed volume growth, which establishes that, yes, we have the pricing power.”
Ankit Jain, page 14 of the filed PDF · View the filing
Management said the increase is due to rate variance from inflation rather than channel inventory buildup, with quantitative variance at the overall level being almost nil.
Answered by Ankit Jain
Asked by Parikshit Gupta: What explains the sharp jump in inventory to INR730 crores?
p. 13
“the entire inventory is because of the inflation”
Ankit Jain, page 13 of the filed PDF · View the filing
Management attributed the sequential dip to reduced promotions in Pride of Cows and pricing/distribution changes in Avvatar, describing these as transitionary rather than structural.
Answered by Ankit Jain
Asked by Mohit Patil: Did Avvatar/whey pricing cause a slight degrowth in the New Age business versus competitors who absorbed cost increases?
p. 16
“these are all normal transitionary part. If you look at growth, you are looking at sequential from 102 to 100 number.”
Ankit Jain, page 16 of the filed PDF · View the filing
Risks flagged
Inflationary pressure from rising milk prices impacting gross margin percentage
p. 10
“in a hyperinflationary environment, the percentage gross margin dips down”
Ankit Jain, page 10 of the filed PDF · View the filing
Potential further commodity inflation affecting margins
p. 14
“the inflationary environment in commodity cycle will determine how our percentage margin moves in the coming quarters”
Ankit Jain, page 14 of the filed PDF · View the filing
Rising fuel and packaging raw material costs creating cost pressure
p. 12
“there were inflationary pressure on the polymer prices and plastic raw material. That has already increased the packing material prices.”
Rahul Kumar Srivastava, page 12 of the filed PDF · View the filing
Uncertainty in the Middle East delaying Dubai subsidiary depot plans
p. 17
“for the last 2 months or last 3 months, everything has been pretty much on hold, and we've been working and selling directly to the distributors now and not be able to open the depot.”
Akshali Shah, page 17 of the filed PDF · View the filing
Decline in export and institutional sales affecting core category volume growth
p. 7
“there have been decline in the export sales Y-o-Y for quarter 4. And hence, we see the decline in the core categories.”
Ankit Jain, page 7 of the filed PDF · View the filing
Global protein price volatility and FX movements affecting whey costs
p. 16
“the protein prices has seen a very northward movement and very, very high movement. So again, one reason is also on the FX side.”
Ankit Jain, page 16 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.