Shares of Parag Milk Foods tumble 9.7 per cent after Q3FY26 financial results!
Kiran DSIJCategories: Mindshare, Trending
The shares of the company saw a spurt in volume by more than 1.6 times on the BSE and the stock is up by 76 per cent from its 52-week low of Rs 135.10 per share
Parag Milk Foods Limited (PMFL) achieved a significant milestone in Q3FY26, reporting its highest-ever quarterly revenue of Rs 1,013 crore, representing a 14 per cent year-on-year (YoY) increase. This growth was underpinned by a robust 8 per cent increase in underlying volumes. The company's core categories—Ghee, Cheese and Paneer—saw a stupendous 12 per cent volume growth, with flagship brands like Gowardhan Ghee and Go Cheese maintaining dominant market shares of 22 per cent and 35 per cent, respectively. Notably, the New Age Business, featuring Pride of Cows and Avvatar, surged by 123 per cent YoY, surpassing the Rs 100 crore quarterly revenue mark for the first time.
Despite the strong top-line momentum, the company faced substantial headwinds due to a 20 per cent YoY increase in raw milk prices, which averaged Rs 40 per litre. Consequently, while Gross Profit grew by 9 per cent to Rs 262 crore, the Gross Margin contracted to 25.9 per cent compared to 27.2 per cent in the previous year. Profit After Tax (PAT), adjusted for exceptional items, stood at Rs 35 crore, a slight 2 per cent dip YoY. PMFL successfully mitigated some of these inflationary pressures through calibrated price hikes, a favourable product mix and strategic promotional activities, maintaining stable margins on a sequential basis.
To drive future growth and premiumization, PMFL continued aggressive brand-building efforts, including high-profile associations with Kaun Banega Crorepati and actress Janhvi Kapoor for the Avvatar brand. The company also enhanced market penetration by introducing Gowardhan Cow Ghee in Rs 20 sachets to attract value-seeking consumers. Looking ahead, management remains focused on navigating commodity volatility by leveraging its strong FMCG brand equity and expanding its distribution footprint. For the first nine months of FY26, the company maintains a positive trajectory with a 17 per cent growth in adjusted PAT, signalling long-term sustainable profitability.
About the Company
Established in 1992, Parag Milk Foods Limited is India’s largest private dairy FMCG company, specialising in 100 per cent cow’s milk products across a diverse brand portfolio, including Gowardhan, Go, the premium Pride of Cows and the sports-nutrition focused Avvatar. With advanced manufacturing facilities in Maharashtra and Andhra Pradesh and a state-of-the-art 5,000-cow dairy farm, the company leverages an integrated business model and strong R&D to lead in dairy innovation. From traditional staples like ghee and paneer to India’s first vegetarian whey protein, Parag Milk Foods remains committed to its goal of becoming a global nutrition provider through a focus on health, quality and premiumization.
On Thursday, shares of Parag Milk Foods plunged 9.7 per cent to Rs 237.40 per share from its previous closing of Rs 262.80 per share. The shares of the company saw a Spurt in Volume by more than 1.6 times on the BSE and the stock is up by 76 per cent from its 52-week low of Rs 135.10 per share. The company has a market cap of over Rs 3,000 crore with a PE of 23x, an ROE of 12 per cent and an ROCE of 14 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.