Parag Milk Foods Q4 FY25 results: net profit up 167.2% to ₹26.21 crore, revenue up 16.2%

How did Parag Milk Foods perform in Q4 FY25?

Consolidated revenue for Q4 FY25 was ₹918.25 crore, up ₹128.13 crore or 16.2% from Q4 FY24 and ₹33.53 crore or 3.8% from Q3 FY25. Total income was ₹931.34 crore. EBITDA rose to ₹62 crore from ₹36.49 crore a year earlier, while the margin expanded to 6.8% from 4.6%; sequentially, however, EBITDA fell from ₹73.47 crore and the margin declined from 8.3%.

Profit before tax was ₹32.55 crore, up from ₹13.53 crore in Q4 FY24 but down from ₹37.66 crore in Q3 FY25. Net profit rose to ₹26.21 crore from ₹9.81 crore year on year and fell from ₹36.07 crore sequentially; basic EPS was ₹2.20, compared with ₹0.84 and ₹3.03, respectively. On the standalone basis, revenue was ₹898.69 crore and net profit was ₹32.43 crore.

What changed in Parag Milk Foods' costs and profit?

Against Q4 FY24, total expenses rose ₹114.56 crore or 14.6%. Cost of materials increased ₹141.69 crore or 24.1%, employee cost ₹11.51 crore or 35.7%, finance costs ₹9.13 crore or 57.0%, and depreciation ₹2.80 crore or 19.2%. Other expenses declined ₹0.54 crore or 0.4%, while other income increased ₹5.44 crore or 71.1%.

Tax expense rose ₹2.62 crore or 70.4% to ₹6.34 crore, compared with ₹3.72 crore in Q4 FY24. There was no exceptional item. Management said Q4 average milk procurement prices rose 12% year on year to ₹37 per litre and that the company used pricing and promotional actions to maintain year-on-year gross margins.

How did Parag Milk Foods do in FY25 as a whole?

For FY25, consolidated revenue was ₹3,432.21 crore, up ₹293.51 crore or 9.4% from FY24, while total income rose ₹308.55 crore or 9.8% to ₹3,472.46 crore. Profit before tax increased ₹46.73 crore or 54.4% to ₹132.59 crore, and net profit rose ₹28.21 crore or 31.1% to ₹118.79 crore. Basic EPS increased ₹2.26 or 29.3% to ₹9.97.

What do the balance sheet and cash flow show?

At 31 March 2025, total assets were ₹2,032.64 crore, up from ₹1,966.02 crore at 30 September 2024, and total equity was ₹1,023.41 crore, up from ₹962.43 crore. Borrowings were ₹615.49 crore against ₹613.14 crore, while cash rose to ₹11.89 crore from ₹4.48 crore. Inventories were ₹577.95 crore, trade receivables ₹259.51 crore, and trade payables ₹255.68 crore, compared with ₹579.54 crore, ₹287.84 crore, and ₹189.56 crore, respectively.

FY25 operating cash flow was ₹212.04 crore, compared with ₹99.11 crore in FY24. Investing cash flow was negative ₹132.36 crore against negative ₹52.93 crore, financing cash flow was negative ₹78.35 crore against negative ₹49.42 crore, and capital expenditure was ₹123.85 crore compared with ₹61.19 crore. The closing cash figure for FY25 was not provided.

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

Revenue and profit both rose year on year in each of the last four quarters. Revenue reached its highest point in the available series at ₹918.25 crore in Q4 FY25, while net profit peaked at ₹36.07 crore in Q3 FY25 before falling to ₹26.21 crore. The EBITDA margin also peaked at 8.3% in Q3 FY25, then eased to 6.8%.

What else did the company announce?

The board approved the audited standalone and consolidated results for the quarter and year ended 31 March 2025, and the statutory auditors issued unmodified opinions. It recommended a final dividend of 10% per equity share, or ₹1 per share, subject to shareholder approval. The company also filed an investor presentation and proceedings of an extraordinary general meeting concerning a preferential issue of convertible share warrants.

The board proposed appointing Namrata Garud as an additional non-executive independent director for 5 years, subject to shareholder approval. It also proposed reappointments for Devendra Shah, Pritam Shah and Akshali Shah, and appointed Ankit Jain as Chief Strategy Officer and senior management personnel. The EGM filing said shareholders approved the preferential issue of convertible share warrants, with stock-exchange approval still in process.

What did Parag Milk Foods' management say?

Management maintained its aspiration to reach ₹10,000 crore of revenue by FY29, assuming the historical 18-20% CAGR continues, and said EBITDA margin was expected to improve from the current 8.5% without specifying a target. It also maintained routine capex guidance of ₹40-50 crore annually for the next two years and expected milk procurement prices to stabilise for the next six months.

Management said ghee, cheese and paneer grew 17% in volume in FY25, while the Avvatar whey protein brand grew 41% year on year. It continued marketing support for Avvatar and Pride of Cows and planned expansion into newer protein formats. Management also said cheese inventory requires 6-12 months of ageing, lengthening the working-capital cycle, and it declined multiple analyst requests to disclose category-level margins.

How did Parag Milk Foods shares react?

The filing appeared after market. From the price when the results appeared, PARAGMILK was up 1.2% after 5 minutes, 3.7% after 15 minutes and 2.4% after 30 minutes. On the reaction day, the stock closed 13.2% above its pre-results close; by the next day's close it was up 6.7%, and by the fifth session it was up 10.7%, measured cumulatively from the same pre-results close.

The Dairy Products industry median gained 1.6% on the reaction day, against Parag Milk Foods' 13.2%, leaving an excess move of 11.7 percentage points. At the next day's close, the stock's 6.7% gain exceeded the industry's negative 1.5% move by 8.2 percentage points; by the fifth session, the respective gains were 10.7% and 3.6%. Earlier reaction-day moves were 0.4% on 30 January 2025, negative 0.7% on 11 November 2024, negative 2.8% on 23 July 2024 and negative 13.9% on 18 May 2024.

How did other Dairy Products companies do?

Ten other Dairy Products companies were compared for the quarter. Their median revenue growth was 13.5%, compared with Parag Milk Foods' 16.2% quarterly growth. Six peers grew slower than Parag Milk Foods, while four grew faster. Among the nine peers for which profit was compared, three reported higher profit.