Parag Milk Foods Q2 FY27 results: net profit down 8.0% to ₹42 crore, revenue up 23.1%

How did Parag Milk Foods perform in Q2 FY27?

Parag Milk Foods reported consolidated revenue of ₹1,241 crore for Q2 FY27, up 23.1% from ₹1,008 crore in Q2 FY26 and 31.4% from ₹944.57 crore in Q1 FY27. EBITDA rose 38.6% year on year to ₹98.71 crore and increased 44.6% from the previous quarter, while the margin expanded 0.9 percentage points to 8.0% from 7.1%. Profit before tax was ₹55.17 crore, up 9.3% from Q2 FY26 and 88.4% from Q1 FY27.

Net profit for the quarter was ₹42 crore, compared with ₹45.65 crore in Q2 FY26 and ₹22.05 crore in Q1 FY27. The year-on-year decline was 8.0%, while the sequential increase was 90.5%; basic EPS was ₹3.36, down 12.3% from ₹3.83 a year earlier but up 90.9% from ₹1.76 in Q1 FY27. On the standalone basis, revenue was ₹1,215.42 crore, up 23.9%, and profit before tax was ₹49.26 crore against ₹55.7 crore in the year-ago quarter.

What changed in Parag Milk Foods' costs and profit?

Cost of materials consumed rose ₹243.01 crore or 30.7% to ₹1,034 crore from ₹791.17 crore, while total expenses increased ₹212.12 crore or 21.7% to ₹1,187.61 crore. Employee cost rose ₹4.06 crore or 9.5% to ₹46.75 crore, finance costs increased ₹6.55 crore or 32.7% to ₹26.58 crore, depreciation rose ₹0.10 crore or 0.5% to ₹18.85 crore, and other expenses increased ₹30.92 crore or 21.1% to ₹177.29 crore.

Other income fell ₹16.14 crore or 89.5% to ₹1.89 crore from ₹18.03 crore. Tax expense rose ₹8.33 crore or 172.1% to ₹13.17 crore from ₹4.84 crore. There was no exceptional item in either quarter. EBITDA increased ₹27.47 crore to ₹98.71 crore and profit before tax increased ₹4.68 crore to ₹55.17 crore, but the higher tax expense contributed to net profit declining ₹3.65 crore to ₹42 crore.

Management said calibrated price increases, better mix and targeted promotional optimisation absorbed milk-price inflation. It attributed the weaker reported profit mainly to the current-tax impact, and said the year-ago base included an approximately ₹16 Cr reversal of mark-to-market gains upon conversion of the FCCB into equity. Average landed milk price rose 18% year on year and 7% from the previous quarter to ₹45/L.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue was ₹2,185.46 crore, up 17.5% from ₹1,859.47 crore in H1 FY26, while total income increased 16.1% to ₹2,188.76 crore from ₹1,885.14 crore. Profit before tax rose 6.0% to ₹84.46 crore from ₹79.67 crore, but net profit fell 12.5% to ₹64.05 crore from ₹73.23 crore. Basic EPS declined 16.6% to ₹5.12 from ₹6.14.

The investor presentation showed H1 revenue of ₹2,185 crore, including ₹1,358 crore from Flagship categories and ₹273 crore from the New Age business. Management said Flagship categories and the New Age business drove growth, while liquid milk turnover declined 10% and Others declined 43% in the first half.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹2,539.6 crore, up from ₹2,280.63 crore on 31 March 2026, and total equity was ₹1,309.4 crore against ₹1,258.56 crore. Borrowings rose to ₹741.06 crore from ₹540.43 crore, while cash increased to ₹6.25 crore from ₹3.28 crore. Inventories were ₹891.2 crore against ₹730.3 crore, trade receivables ₹293.51 crore against ₹244.51 crore, and trade payables ₹264.22 crore against ₹267 crore.

H1 FY27 operating cash flow was negative ₹84.08 crore, compared with positive ₹99.42 crore in H1 FY26. Investing cash flow was negative ₹57.82 crore against negative ₹52.36 crore, while financing cash flow was positive ₹144.87 crore against negative ₹56.48 crore. Capital expenditure was ₹55.84 crore, compared with ₹63.44 crore a year earlier.

How has Parag Milk Foods done over the last 8 quarters?

Revenue reached its highest level of the listed series in Q2 FY27 at ₹1,240.89 crore, compared with the low of ₹851.52 crore in Q1 FY26. It has risen year on year in each of the last eight quarters. The latest increase from ₹944.57 crore in Q1 FY27 was 31.4%.

Net profit moved from a low of ₹22.05 crore in Q1 FY27 to ₹42 crore in Q2 FY27, but remained below ₹45.65 crore in Q2 FY26. EBITDA margin increased from 7.2% in Q1 FY27 to 8.0% in Q2 FY27, though the series high was 8.3% in Q3 FY25 and the low was 6.3% in Q4 FY26.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the statutory auditors’ limited review reports. It also approved a scheme to amalgamate wholly owned subsidiary Bhagyalaxmi Dairy Farms Private Limited with Parag Milk Foods. The scheme remains subject to sanction by the National Company Law Tribunal and the required shareholder, creditor and regulatory approvals.

Management said the amalgamation is expected to unlock operational synergies, capital and resource efficiencies, and wider distribution reach. No dividend, fund raise or appointment was disclosed in the same-day board outcome filing.

What did Parag Milk Foods' management say?

Management said the Flagship categories and New Age business drove Q2 revenue growth of 23.1% and H1 growth of 17.5%. It said calibrated price increases, better mix and targeted promotional optimisation absorbed 18% year-on-year milk-price inflation, while liquid milk turnover fell 11% in Q2 and Others fell 41%.

Management said cheese processing capacity is targeted to increase from 60 MT/day to 120 MT/day, with completion targeted in FY28, following ₹105 Cr of brownfield capital expenditure approved in August 2026. It also said paneer capacity is planned to rise from 20 MT/day to 80 MT/day through approximately ₹100 Cr of capital expenditure at Manchar and Palamaner, with commissioning targeted by June 2027.

Management identified the current-tax impact, working-capital build, negative operating cash flow and higher net debt as risks. It said H1 operating cash flow was negative at ₹95 Cr after a ₹265 Cr working-capital build, gross debt rose to ₹741 Cr from ₹540 Cr, and net debt rose to ₹678 Cr from ₹484 Cr. The investor presentation was also used for an analyst and investor call on 4 November 2026.

How did Parag Milk Foods shares react?

The filing was released after market hours. From the price when it appeared, the stock was up 1.6% after five minutes, 4.4% after 15 minutes and 5.1% after 30 minutes. The reaction-day close was 15.7% above the previous close, against a 0.8% median move for the other Dairy Products stocks and a 2.2% move in the Nifty Microcap 250.

By the next day’s close, the stock was up 29.1% from its pre-results close. Its cumulative move was 27.5 percentage points above the 1.6% median sector move. Earlier reaction-day moves were mixed: the stock fell 2.7% on 7 May 2026 and 8.1% on 4 February 2026, but rose 12.9% on 11 November 2025 and 13.2% on 2 May 2025.

How did other Dairy Products companies do?

Five other Dairy Products companies had filed for the quarter by 6 November 2026. Their median revenue growth was 18.6%, compared with Parag Milk Foods’ 23.1% growth in Q2 FY27. Four peers grew more slowly than the company, while one grew faster.

Among the five peers for which profit was compared, two reported higher profit. The peer figures do not include Parag Milk Foods itself.