Parag Milk Foods hits record revenue, strengthens financial position

Parag Milk Foods Limited reported a milestone Q2 FY26, with revenues reaching ₹1,008 crores, a 16% year-on-year growth, driven by a 10% volume increase. For the first half of FY26, revenue stood at ₹1,859 crores, a 14% year-on-year increase. Core categories like ghee, cheese, and paneer grew by 14% in volume, now contributing 59% to total revenue, while new-age businesses such as Pride of Cows and Avvatar saw 79% year-on-year growth, accounting for 9% of total turnover.

Despite a 16% year-on-year inflation in milk prices, the company maintained its EBITDA margins at 8.9% (vs. 8.8% last year), with absolute EBITDA growing by 16% to ₹89 crores. PAT surged by 56% year-on-year. The company generated ₹99 crores in operating cash flow during H1 FY26 and reduced its consolidated net debt by ₹125 crores, from ₹561 crores in March 2025 to ₹436 crores in September 2025. This deleveraging resulted in a net debt-to-EBITDA ratio of 1.4x and net debt-to-equity of 0.4x.

Parag Milk Foods aims to evolve into a health and nutrition company, targeting ₹10,000 crores in revenue in the medium term and aspiring for double-digit EBITDA margins. Key strategies include expanding into the protein snacking segment with products like the Avvatar Protein Wafer Bar, enhancing distribution networks, and a strong focus on value-added products, which currently represent 90% of revenues.