PARAGMILKNSEQ2 FY26November 17, 2025

Parag Milk Foods Limited

9,586words

123turns

17analyst exchanges

3executives

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Management on call

Akshali Shah

EXECUTIVE DIRECTOR – PARAG MILK FOODS LIMITED

Rahul Kumar Srivastava

CHIEF OPERATING

Ankit Jain

CHIEF STRATEGY OFFICER – PARAG MILK FOODS LIMITED

Key numbers — 40 extracted

INR1,000 crore

2 FY26 has truly been a milestone quarter. For the first time in Parag's history, we've crossed INR1,000 crore quarterly revenue mark, reaching INR1,008 crores in revenue. That's a 16% year-on-year growth, ba

INR1,008 crore

the first time in Parag's history, we've crossed INR1,000 crore quarterly revenue mark, reaching INR1,008 crores in revenue. That's a 16% year-on-year growth, backed by a solid 10% volume growth. Looking at th

16%

e've crossed INR1,000 crore quarterly revenue mark, reaching INR1,008 crores in revenue. That's a 16% year-on-year growth, backed by a solid 10% volume growth. Looking at the first half of this year,

10%

ue mark, reaching INR1,008 crores in revenue. That's a 16% year-on-year growth, backed by a solid 10% volume growth. Looking at the first half of this year, the story becomes even more encouraging.

INR1,859 crore

at the first half of this year, the story becomes even more encouraging. H1 FY26 revenue stood at INR1,859 crores, a 14% increase year-on-year. These numbers are not just financial metrics, they reflect our con

14%

f this year, the story becomes even more encouraging. H1 FY26 revenue stood at INR1,859 crores, a 14% increase year-on-year. These numbers are not just financial metrics, they reflect our consistency

59%

continue to lead the way, growing by 14% in volume this quarter. Together, they now contribute to 59% of our total revenue, reaffirming the strength and the potential of our core category portfolio i

79%

category portfolio itself. Our new age business, Pride of Cows and Avvatar together have grown by 79% year-on-year, and now contribute to 9% of our total turnover, up from 6% last year. Avvatar has c

usiness, Pride of Cows and Avvatar together have grown by 79% year-on-year, and now contribute to 9% of our total turnover, up from 6% last year. Avvatar has continued its remarkable growth trajecto

together have grown by 79% year-on-year, and now contribute to 9% of our total turnover, up from 6% last year. Avvatar has continued its remarkable growth trajectory, expanding six-fold over the pa

k prices witnessed an inflation of around 16% year-on-year and were sequentially higher by around 2% during the quarter. The average milk price during the quarter inched up to INR 38 per litre. De

INR 38

ly higher by around 2% during the quarter. The average milk price during the quarter inched up to INR 38 per litre. Despite this volatility, we have been successful in maintaining our EBITDA margins year

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Guidance — 20 items

Akshali Shah

opening

“Q2 FY26 has truly been a milestone quarter.”

Akshali Shah

opening

“H1 FY26 revenue stood at INR1,859 crores, a 14% increase year-on-year.”

Akshali Shah

opening

“To sum up, Q2 FY26 has truly been a milestone quarter, one that not only marks a historic achievement with revenues crossing the INR1,000 crore mark, debt reduction of INR 125 crores and a PAT growth of 56%, but also a testimony to our belief on strong business fundamentals with deeper consumer connect and sustainable profitable growth.”

Ankit Jain

“So, the first question with respect to the medium-term vision.”

Sucrit Patil

“Is there any system that you will be putting into place that will help you keep the profit margin stable even when things sometimes get out of control?”

Ankit Jain

“So the journey continues, and we hope to keep a track on these businesses.”

Ankit Jain

“See, while we have given a guidance for the medium term to improve to get to double digits, we are stepping up gradually in terms of our EBITDA margins, and which we see now hovering around 8.9% in -- during quarter 2.”

Anirudh K

“So clarification is core EBITDA, we still don't know whether it will reach double- digit or not?”

Ankit Jain

“There will be certain items which are there, and it cannot be only non-cash.”

Ankit Jain

“The idea over here of presenting you that over a medium term, we want to step up is how we aspire to grow our EBITDA margins, which could be mainly with product mix as well as scaling up the efficiencies.”

Risks & concerns — 7 flagged

So very difficult to get the unorganized numbers because there are households which still get milk at home, separate the butter and separate the butter milk and then make ghee on their own.

— Akshali Shah

So it's very difficult to get the unorganized.

— Akshali Shah

So overall, I'm talking about Ghee in particular, it is difficult to tell.

— Rahul Kumar Srivasta

So what we see -- your question is very specific to the risk and the challenges.

— Ankit Jain

So I'm straight away moving on to the risk.

— Ankit Jain

Now the risk and challenge becomes is more about how do we execute.

— Ankit Jain

So the core risk or challenge lies in executing -- I think, execution remains key and that is given for any organization, how do we execute well on to our strategy.

— Ankit Jain

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Q&A — 17 exchanges

Team, I have two forward-looking questions. First is looking beyond the near-term numbers, what is the bigger plan for Parag Milk as the dairy industry shifts towards premium nutrition and branded products? How are you positioning Parag to build a lasting edge for something that goes beyond milk collection or cheese volumes and makes the company stronger and hard for your competitors to copy? Thank you. That's my first question. I'll ask the second question later.

Ankit Jain

So, the first question with respect to the medium-term vision. See, we have already stated a vision of INR 10,000 crores a couple of months back where our Chairman stated the vision, and we are all working towards achieving that milestone. The short-term item like update on what is the outlook for the year, we do not per se give a specific number for the outlook for the year. However, we continue to stay to our vision of INR 10,000 crores. In terms of copying entrants, etcetera, see, we are focusing a lot on the protein segment. If you look at our new age business it is now comprising about 9%

I had a couple of questions. One, and first of all, many, many congratulations on a fabulous quarter. I think crossing INR1,000 crores sales with such increase in new age business and the core categories is absolutely excellent. So congratulations to the entire team. My first question is we've had on the core categories, we have had 14% volume growth and similar on the new age business, we have grown significantly there. Could you kind of throw more color, especially on the core categories,is it because of the older distributors in terms of the general retail, and I'm new to the business. So s

Ankit Jain

Thank you for the appreciation. See, in the core categories, we believe fundamentally that there is enough potential in our core categories itself to gain the market share, to explore into the newer outlets, as well as to grow deeper where we are already existing. The growth of 14% across, it's a mix of a couple of products like ghee, cheese and paneer. This 14% underlying volume growth is a result of overall growth. It is not one that it is a same- store growth or it is only a distribution expansion-led growth. It's a holistic growth for the entire core categories. Similarly, new age. While n

First of all, congratulations for a very good set of number, and congratulations also for the detailed presentation. Okay. I have a strategic question for Akshali, Ankit and Rahul ji. Is Parag, the way we are placed is you have all the regional players where they are focused on the region, mainly South and their value-added contribution is very less. Whereas our value-added contribution is very high, and we are a national player after Amul. Now Amul cannot play the premiumization game given the way, the structure is. And –you know it cannot play the premium game what we can play. Now my questi

Ankit Jain

Yes. See, when we talk of value-added product, if you were to exclude milk, the entire business portfolio is a value-added product when we have to look at the value-added perspective. I know that. I know that, yes. Because the core category is ghee, cheese, paneer. Still there's a new age or - even ingredients, so to say, and other portfolio, which is curd, beverages, etcetera. So 90% of our portfolio is a value-added product business. However, the important element to keep in mind is that we still have 30%, which is a B2B business and 70% is B2C now. So as the mix of B2C improves, of course,

Couple of questions. One, in terms of regional salience between Northwest, East and South, how are your sales regionally? That is question number one. And could you share specific numbers in terms of what is the distribution growth? What is the throughput growth? And what's the growth across channels between GT, modern trade, e-commerce and B2B?

Ankit Jain

So thanks for your question. But as you would know, we are not giving selective specific information. What we give is a dissection of our composition of the turnover in a standard format of defining into core categories, new age, etcetera. Geographical mix, there will be ups and downs. There will be different mix for different products. So we do not share on a weighted average, what is the geographical mix or for that matter, a channel mix. We do share our B2B and B2C mix, which we have shared for the half year. It is 70% as B2C and 30% as B2B. Okay. Some salience of regional would have been h

Congratulations to the entire team at Parag for a wonderful set of numbers, including crossing the INR1,000 crores milestone. So, my question is with regards to the core categories. The previous participant did ask about, you know, the drivers or what led to basically the core categories growing, 14% volume and 23% value growth. So going ahead, how do we look at this category, entire category, ghee and cheese where we have a very large market share with a tune of 22% and 35%. At the same time, paneer is there in the core category. So going ahead, sir, what kind of growth do we see in this cate

Ankit Jain

See, with respect to core categories, we have distinctly identified the underlying volume growth because the commodity fluctuation today, it's an inflationary environment. Tomorrow, it may be deflationary. So the pricing will vary to that extent. So hence, to forecast that it will be a 23% growth always with a volume growth of 14%-odd or 15%-odd is not ever casting stone because value growth will differ. Having said that, if we are growing in volumes, if we are growing on to keeping our share or rather increasing our share, I think that is more which is focused upon. In GST, of course, we had

So, I had a question on the protein side that the whey protein market is highly competitive. So what is your strategy to establish your brand in this market? And also what kind of growth do you expect in this market in the next 2 to 3 years?

Ankit Jain

See, protein is a growing market and whey, one of the fastest, I would say. It's growing at a very high pace. The, not I would say literacy, but the knowledge about deficiency of protein in an Indian diet, the awareness of the consumers is increasing and the fitness quotient of consumers are increasing. So hence, the category is growing at a very, very fast pace. We created our brand a couple of years back, 4 years back maybe. Why? Because we were creating whey protein earlier, but we were supplying as a B2B player. Now we saw an opportunity into the country whereby the whey protein is all imp

My question is, you know, in the commentary, we talked about inflationary environment being persistent. But when we listen to the other dairy calls, they talked about the flush season leading to lower milk prices and hence, better margins going forward. So is it because of our geographical presence that our commentary is different? Any thoughts on that?

Ankit Jain

See, what we have presented is the actual for the quarter. 16% inflation is actual for the quarter. We have not given a forward-looking statement. However, in the statement of our Executive Director, you will find in the media release that we see that the inflation is going to continue even post festive. So it's been already 1.5 months post festive, in fact, post the quarter, sorry. We see the prices remaining stable to what it were, and we don't foresee as such, again, it is about a forecast, which we are not giving at this point of time. But the overall prices in the inflationary environment

So, the question I wanted to better understand from you, Ankit, was the reference you made in your last call about how the margins, and I'm assuming including other income in it, how the combined margins on the EBITDA side would inch up to the low teens. So say, right from the current 8.99% to low teens at 13%, 14%. And within the next, say, 24 months is the statement that was made. One is -- the first part is that, is that on track from your end? And how do you get there? If you could explain that, that would be of great help.

Ankit Jain

Sorry, if you could repeat your question because I want to answer very specific. If you can elaborate, how do you get there? I could not get your question clearly. Sure. So my question is, how do you go from the current 8.9% EBITDA margins to low teens, to somewhere around 13%, 14% over the next 24 months based on the commentary you have made in your last call. Yes. See, that is again an aspiration. As you look at our EBITDA margins, we have inched up our EBITDA margins consistently from 5.5% to 7.5% to 8.5% and currently also at around 8.9% for the quarter. So we are stepping it up gradually

Sir, just wanted to understand, so the ghee market is close to INR1 trillion or maybe a little bit more. How big would the cow ghee market be out of this?

Ankit Jain

Yes. So, overall while -- hello?

Yes. So, when we are talking of this market size, this is a market size which has both organized segment as well as unorganized segment, right. When it comes to organised, when we talk about our market share, it is specific to the branded cow ghee segment, what we talk about, which is a very small subset of this market because in overall ghee market, there is a majority of portion which is a buffalo ghee or a mixed ghee versus only a cow ghee, and that too within the branded segment.

Resha Mehta

No, no, which is fine. But all I'm trying to ask is that out of the almost over INR 1 trillion ghee market, both organized, unorganized put together, how big would the cow ghee market be? Sorry, if you could repeat your question? Yes. So, I'm saying the total market is close to over INR 1 trillion, which is both organized and unorganized put together. So out of this INR 1 trillion, how big is the cow ghee market, which includes both organized as well as unorganized. Yes. So, it is around INR 6,000-7000odd crores when it comes to the pricing in the market. Which is organized plus unorganized? N

Yes. Sir, in the past 3 years, like from March '23 to the current year, our growth in value-added segment, that is protein is mainly from price hike of our products as per our channel check. So can you guide us on the volume growth of Avvatar Protein in the past 3 years in the market, like the absolute volume growth? And the strategy from here on for Avvatar Protein because I was getting the feedback that our proteins are almost priced at par with the imported brands such as ON. So why would a consumer prefer the likes of our brand as compared to the more known ones such as ON and Muscle Blaze

Ankit Jain

While we are not giving a specific number, and we will not give, but I would say there is hardly any gap between the volume and value growth for Avvatar. So for Avvatar, I'm not sure what you're hearing. See, overall, because of the protein deficiency, the protein itself is very rarely available. And hence, the protein market is inching up to that extent. So overall, our volume growth and value growth is almost in line. And your question was more on pricing. So we have discounted the price. Post GST, we have reduced the pricing. So this is a continuous way of working, specifically for brands l

Congratulations for growing at a very fast pace. Sir, one question I had more on book keeping side. Sir, if I look at our FY 25 numbers, there is this INR100 crores of incentive that we have received, I guess, from the Maharashtra government. Now last year, our total EBITDA was INR 250 crores if we exclude the other income. Out of that INR 100 crores was contributed by these incentives, which I believe is expected to go away next year. So how do we expect to fill this gap of this INR100-odd crores, which is like 100% flow-through to EBITDA. If that goes up by INR 100 crores, how do we expect t

Ankit Jain

See, first of all, it is not equal to INR 100 crores. This is broadly around INR 85-odd crores. The milk subsidy is part of the milk costing because there was a specific circular from Maharashtra government and that too for a specific 4-5month window, whereby it was more of a compensation for the amount which we paid to the farmers. It's the accounting treatment that we have to recognize subsidy separately. That is why you see it as part of the operating revenues. However, if you were to look at overall margin, we have been able to maintain the margin. And given the fact that these are state b

Congratulations on a great set of numbers. So I just have one question on the protein side. I just wanted to understand, I mean, how are we positioning ourselves here in this market in terms of -- like what is the strategy in terms of positioning and branding, especially now that the largest milk manufacturers is also stepping in the protein market. Yes, I just wanted to understand how we are positioning ourselves. Thank you.

Ankit Jain

You're talking of whey protein specifically or the overall protein segment, whereby in every product, we mentioned this is a protein because inherently, milk has protein and every product which is made from milk will have some of the other protein levels. The protein segment, the powder and the wafer bars, that particular segment. You're talking about the whey protein segment, right? Right, right. So in whey protein, I think we have answered this question earlier also. Protein is a market which is growing on a rapid pace. And we have found our space to, of course, tap into that and take the op

Sir, my question is that with respect to the vision that has been articulated by the management of around –INR 10,000 crores revenue in 3 to 5 years and the EBITDA margin of mid-teens. The question is, what are the key risks, key constraints and challenges that you see in achieving that?

Ankit Jain

See, when we look at opportunity, of course, it comes along with challenges to combat with, then only we will be able to turn the opportunity into your favour. So what we see -- your question is very specific to the risk and the challenges. So I'm straight away moving on to the risk. The risk is procurement. How do we have a stable procurement? How do we increase our procurement scale from today's 15 lakh litres to, say, 40 lakh litres over a period of time? How do we go into increasing our share of having BMCs versus the overall aggregator-based milk procurement. So these are things on the pr

Congratulations on a very good set of numbers. So the question I had is we have generated a healthy INR 100 crores of cash flow, plus we have had INR 40 crores of fresh funds coming in. Despite that, if I look at your cash flow statement, we have only been able to repay INR 50 crores of debt. Remaining, I believe, comes from conversion of FCCB. So just wanted to ask why were we not able to repay more debt, one? And an extension of the same question is what is our interest rate on the gross debt that we have, INR 480-odd crores?

Ankit Jain

INR 483 crores. Yes. I mean gross debt on that. What is the interest rate on the same? Yes, sure. So first of all, if you look at the cash flow statement, while it is very clear, we are focused on the cash generation, which is INR 99 crores for the half year. The deployment, if you look at is largely gone into capital expenditure, which we have been able to fund ourselves. That is one. And secondly, the interest payout, which is there on the existing debt. So all in all, that is why you see the delta is INR 125 crores, wherein FCCB component is around INR80-odd crores. We have been able to rep

Yes. So what I'm trying to understand is on INR 500 crores, what would be the pure interest component that we are paying that you're saying would be less than INR 15 crores. And remaining INR 30 crores, if you can give me the breakup on lease -- interest on lease and bill discounting interest that you are paying, roughly?

Ankit Jain

Yes. Even if you look at last year number, it was close to INR55 crores as a pure number. So this year, certainly, it should be lower than the same.

Thank you all.

Management

Speaking time

Ankit Jain

Moderator

Akshali Shah

Resha Mehta

Rahul Srivastava

Harsh Shah

Naitik Mutha

Pranjal Mukhija

Sucrit Patil

Anirudh K

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Opening remarks

Akshali Shah

Thank you, Brian. Good afternoon, everyone. It's wonderful to connect with you all again. I hope you and your families had a joyful festive season. As I speak to you today, I feel proud and energized by the remarkable progress we've made over the past 6 months. Q2 FY26 has truly been a milestone quarter. For the first time in Parag's history, we've crossed INR1,000 crore quarterly revenue mark, reaching INR1,008 crores in revenue. That's a 16% year-on-year growth, backed by a solid 10% volume growth. Looking at the first half of this year, the story becomes even more encouraging. H1 FY26 revenue stood at INR1,859 crores, a 14% increase year-on-year. These numbers are not just financial metrics, they reflect our consistency, solid business fundamentals and most importantly, the trust consumers place in our brand every single day. Our core categories, that is ghee, cheese and paneer continue to lead the way, growing by 14% in volume this quarter. Together, they now contribute to 59% of o

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