Parag Milk Foods Ltd, a leading dairy-FMCG company in India, reported a 23% increase in net profit for the March quarter at ₹32 crore, backed by improvement in Gross Margin with improved product portfolio composition and calibrated pricing promotion mix.
Revenue rose to ₹945 crore despite a 5% decline in volume due to base year institutional and exports sales and growth of 3% in value due to lower institutional sales and planned reduction in SMP.
The company’s core categories, ghee, cheese and paneer, recorded volume growth of 8% and value growth of 16% year-on-year.
The flagship Gowardhan Ghee brand maintained a 22% market share in the branded cow ghee segment, while cheese brand “Go” retained its No.2 position with 35% market share in the cheese category.
New-age business crosses milestone
The new-age business segment led by Pride of Cows and Avvatar crossed the ₹100-crore quarterly revenue milestone during Q4, registering a sharp 109% growth.
The segment contributed 10% to overall business compared with 6% in the corresponding period last year.
Avvatar continued to emerge as a key growth engine, achieving an 11-fold scale-up over the last four years. The company said the protein wafer bar received encouraging consumer response and contributed 6% to the brand’s revenue.
Milk prices witnessed inflation of 15% year-on-year, with average procurement prices rising to ₹42 per litre.
Despite the sharp increase in milk prices, the company managed to pass on the cost increase in a calibrated manner, resulting in 8% growth in gross profit. The improved portfolio mix of premium and new-age products also supported margin expansion.
Focus on protein-led growth
Parag Milk Foods Executive Director Akshali Shah said, “FY26 has been a meaningful year for Parag Milk Foods with overall topline growth of 11% and bottomline growth of 19% before exceptional items. Our performance reflects the benefits of focused execution across portfolio premiumisation, calibrated pricing, and cost discipline, while combating hyper-inflation in commodity prices.
“In the coming years, we are focussed to uplift the consumer lifestyle with our protein-based offerings. We look forward to explode the power of our four brands with full rigour to scale up strong momentum of growth along with value accretion in form of accelerated profitability,” she said.
The board recommended a dividend of ₹1.10 per share.