PARAGMILKNSEParag Milk Foods LimitedMediumNeutral
Announced Sun, 27 Jul · 22:27 IST

Parag Milk Foods Limited has informed the Exchange about Transcript of Earnings Conference Call held on July 22, 2025

Mgmt Guided Margin ImprovementMgmt Evaded Key QuestionInvestor Communications View source PDF

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Parag Milk Foods reported its highest-ever Q1 revenue of INR 852 crores, up 12% YoY, driven by 9% volume growth in core categories (cheese, ghee, paneer) which now contribute 57% of total revenue. Despite an 18% YoY rise in average milk procurement price to INR 37/litre, the company posted 6% EBITDA growth at a 7.7% margin. Gross margins improved sequentially from 25.1% to 27.4%. The new-age business (Avvatar whey protein and Pride of Cows) grew 57% YoY and now contributes 9% of revenue. Management aspires to lift EBITDA margins from high single digits to double digits over the next 12-24 months, while also working to reduce working capital to improve ROCE.

Likely market impact

Strong revenue growth and margin resilience despite sharp commodity cost inflation are positives. The rapid scaling of the high-margin new-age business (especially Avvatar, 8x growth in 3 years) offers re-rating optionality. However, overall EBITDA margin of 7.7% remains below FMCG peers and management declined to disclose several key splits, which may keep valuation multiples range-bound until margin expansion is delivered.