PARAGMILKNSEParag Milk Foods LimitedMediumNeutral
Announced Mon, 21 Jul · 22:06 IST

Parag Milk Foods Limited has informed the Exchange about Investor Presentation on Unaudited Financial Results for quarter ended June 30, 2025

Mgmt Guided Margin PressureInvestor Communications View source PDF

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Parag Milk Foods reported its highest-ever Q1 revenue of ₹852 Cr, up 12% YoY, supported by 9% volume growth in core categories (Ghee, Cheese, Paneer), which now contribute 57% of revenue and grew 14% in value. The new-age business (Pride of Cows, Avvatar) surged 57% YoY, rising to 9% of overall revenue from 6% last year, while liquid milk revenue grew 14% to ₹487 Cr. However, profitability was under pressure — consolidated EBITDA margin contracted to 7.7% from 8.1% YoY, and PAT margin slipped to 3.2% from 3.6%, with management attributing the dip to higher advertising & promotion spend and an 18% YoY rise in milk procurement costs. Standalone performance was comparatively stronger, with PAT up 20% YoY at ₹32 Cr. The balance sheet remains healthy with Net Debt/Equity at 0.5x and ROCE at 14.3% in FY25.

Likely market impact

Strong revenue and volume growth signals healthy demand, but the YoY margin contraction and rising input costs may weigh on near-term sentiment. Watch for signs of margin recovery in subsequent quarters as new-age business scales and milk price pressure eases.