New-age business quarterly revenue
₹100 crore
+100% YoY
Second consecutive quarter above ₹100 crore; contribution to total revenue reached 10%.
PARAGMILKFOODS
Consumer
15 May 2026
Parag Milk Foods Ltd — Q4 FY26
Parag Milk Foods reported FY26 annual revenue of ₹3,800 crore, with double-digit growth and 5% volume growth.
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2-Min Summary
✦ AI-Generated from Full Transcript
Parag Milk Foods reported FY26 annual revenue of ₹3,800 crore, with double-digit growth and 5% volume growth. Core categories grew 8% in volume, while the new-age business (Avataar, Pride of Cows) surged 91% YoY, reaching ₹100 crore quarterly revenue for the second consecutive quarter, now contributing 10% of total revenue. Gross margins expanded to 28% in Q4 (vs 26.7% last year) despite 15% milk price inflation, driven by portfolio mix and pricing discipline. However, Q4 core category volumes declined 3% due to lower institutional/export sales. Management targets double-digit EBITDA margins and expects new-age business to reach 20-25% of revenue in 3-5 years. Capex guidance for FY27 is ₹60-70 crore. Risk: Employee costs surged due to ESOP and director remuneration changes, pressuring near-term profitability.
Key Numbers
Gross margin Q4
28%
+130bps YoY
Expanded despite 15% milk price inflation; driven by product mix and pricing.
Milk procurement price
₹42/liter
+15% YoY, +4% QoQ
Inflationary pressure; management expects stability for next 2-3 months.
Cheese capacity expansion
60 to 80 MT
+33%
Planned capacity increase via adjacency capex; no greenfield required.
Management Guidance
New-age business to reach 20-25% of revenue in 3-5 years
Management expects the new-age business (Avataar, Pride of Cows) to contribute 20-25% of total revenue over the next 3-5 years, implying ~₹1,000 crore at a ₹10,000 crore revenue target.
Management guidance growthCapex guidance of ₹60-70 crore for FY27
Capital expenditure for FY27 is guided at ₹60-70 crore, primarily for cheese capacity expansion and other projects.
Management guidance capexDouble-digit EBITDA margin aspiration
Management aims to achieve double-digit EBITDA margins, though no specific timeline was provided.
Management guidance marginsCore categories double-digit volume growth aspiration
Management aspires to double-digit volume growth in core categories, leveraging distribution expansion and market share gains.
Management guidance growthKey Risks
Employee cost escalation
Employee expenses rose sharply due to ESOP grants and director remuneration changes, impacting EBITDA margins. Quarterly run-rate may settle around ₹45-46 crore.
medium · analyst_questionCore category volume decline in Q4
Core category volumes declined 3% in Q4 due to lower institutional and export sales, raising concerns about demand sustainability.
medium · data_observationMilk price inflation and margin pressure
Milk prices rose 15% YoY; while management passed on costs, further inflation could pressure gross margins if pricing power wanes.
high · management_commentaryNew-age business sequential stagnation
New-age business revenue was flat sequentially at ~₹100 crore due to promotional pullbacks and price increases; growth trajectory needs monitoring.
medium · analyst_questionNotable Quotes
We crossed 3,800 crores in annual revenue growing in double digits with volume growth of 5%.
Our new age business has emerged as a strong growth engine crossing 100 crores in quarterly revenue for the second consecutive quarter and growing over 100% year-on-year in Q4.
We are confident that we will inch up to double digit margins... the idea or the business strategy is to enter into double digit margins.
Frequently Asked Questions
What was Parag Milk Foods's revenue in Q4 FY26?
Parag Milk Foods reported revenue of ₹945 Cr in Q4 FY26, representing a — change compared to the same quarter last year.
What guidance did Parag Milk Foods management give for FY27?
New-age business to reach 20-25% of revenue in 3-5 years: Management expects the new-age business (Avataar, Pride of Cows) to contribute 20-25% of total revenue over the next 3-5 years, implying ~₹1,000 crore at a ₹10,000 crore revenue target. Capex guidance of ₹60-70 crore for FY27: Capital expenditure for FY27 is guided at ₹60-70 crore, primarily for cheese capacity expansion and other projects. Double-digit EBITDA margin aspiration: Management aims to achieve double-digit EBITDA margins, though no specific timeline was provided. Core categories double-digit volume growth aspiration: Management aspires to double-digit volume growth in core categories, leveraging distribution expansion and market share gains.
What are the key risks for Parag Milk Foods in FY27?
Key risks include Employee cost escalation — Employee expenses rose sharply due to ESOP grants and director remuneration changes, impacting EBITDA margins. Quarterly run-rate may settle around ₹45-46 crore.; Core category volume decline in Q4 — Core category volumes declined 3% in Q4 due to lower institutional and export sales, raising concerns about demand sustainability.; Milk price inflation and margin pressure — Milk prices rose 15% YoY; while management passed on costs, further inflation could pressure gross margins if pricing power wanes.; New-age business sequential stagnation — New-age business revenue was flat sequentially at ~₹100 crore due to promotional pullbacks and price increases; growth trajectory needs monitoring..
Did Parag Milk Foods meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Parag Milk Foods Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.