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Parag Milk Foods Q1 profit slips 20 per cent despite double digit revenue growth
Revenue rises 11 per cent to Rs 944.6 crore as higher costs weigh on earnings
MUMBAI: Not every glass of milk comes with extra cream. While Parag Milk Foods poured more revenue into its books in the June quarter, rising costs skimmed the top off profitability, leaving earnings under pressure despite steady business growth.
Parag Milk Foods reported a 19.9 per cent year-on-year decline in consolidated net profit for the quarter ended 30 June 2026, with profit after tax falling to Rs 22.05 crore from Rs 27.58 crore in the corresponding quarter last year. The company, however, delivered healthy top-line growth as consolidated revenue from operations climbed 10.9 per cent to Rs 944.57 crore, compared with Rs 851.52 crore a year earlier.
Total consolidated income stood at Rs 945.98 crore, while profit before tax edged up marginally to Rs 29.29 crore from Rs 29.18 crore in the year-ago period. The lower net profit came after the company reported a significantly higher current tax expense of Rs 7.94 crore, against Rs 0.45 crore in the corresponding quarter last year.
Expenses also moved higher during the quarter. Cost of materials consumed increased to Rs 727.33 crore from Rs 717.53 crore, while employee benefit expenses rose to Rs 47.73 crore from Rs 38.59 crore. Finance costs increased to Rs 21.90 crore from Rs 20.02 crore, and depreciation and amortisation expenses climbed to Rs 18.47 crore from Rs 16.32 crore. Other expenses also inched up to Rs 142.06 crore from Rs 136.47 crore.
On a standalone basis, the company reported revenue from operations of Rs 920.47 crore, up from Rs 830.52 crore a year ago, while profit after tax declined to Rs 25.43 crore from Rs 32.35 crore. Standalone earnings per share stood at Rs 2.03, compared with Rs 2.71 in the corresponding quarter last year.
Alongside the results, Parag Milk Foods’ board approved a Rs 105 crore brownfield expansion to double its cheese manufacturing capacity from 60 metric tonnes per day to 120 metric tonnes per day by FY28, reflecting its long-term bet on India’s growing cheese market. The company also appointed Rakesh Kothari as its Chief Financial Officer, effective 7 August 2026.
The company’s financial results were approved by the board on 6 August 2026, with statutory auditors issuing an unmodified limited review opinion on both the standalone and consolidated financial statements.
