Parag Milk Foods Limited has informed the Exchange about Transcript of Earnings Conference Call held on July 22, 2025
PARAGMILK · price
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Awaiting price reaction for this filing.
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.
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.