Parag‍‌‍‍‌‍‌‍‍‌ Milk Foods Shares Price Surge Over 12% After Unprecedented Q2 Displays

Mumbai, November 12 2025: The share price of Parag Milk Foods Ltd (NSE: PARAGMILK | BSE: 539889) increased by more than 12% in today’s opening session. The surge ͏cam͏e after the com͏p͏any pos͏ted͏ its best-͏eve͏r quar͏terly revenue of ₹ 1,008 crore͏ for͏ the s͏ec͏ond quarte͏r of 2026, a grow͏th͏ of 16% year-on-year. The boost i͏n in͏vestor͏ ͏conf͏ide͏nce͏ w͏a͏s supported͏ by strong earnings an͏d good growth in ͏the c͏ompany’s cor͏e d͏airy products.

Strong Q2 Performance Across Core Dairy Products

Parag Milk Foods reported impressive financial performance in the quarter ended September 30, 2025. EBITDA increased 16% YoY to ₹89 crore, and PAT rose 56% to ₹46 crore. The gross profit margin improved from 23.6% last year to 25.8%, driven by both better realisations and operational efficiencies. Overall, the firm reported a 10% volume growth for its portfolio. Growth in its core categories, including Ghee, Cheese, and Paneer, was up 14% YoY, contributing 10% volume growth. These three products include market-leading brands of the company: namely Gowardhan Ghee and Go Cheese, which retained leading positions with market shares of 22% and 35%, respectively.

Financial Strength and Half-Year Growth

The company has reported consolidated revenues of ₹1,859 crore for the first half of FY26, up by 14% YoY, and PAT of ₹73 crore, up 30% YoY. EBITDA was ₹155 crore for H1FY26 against ₹138 crore a year ago, indicating that the company has been able to control costs successfully and maintain demand momentum. Operating cash flow in the first half was ₹99 crore, while Parag Milk Foods reduced its net debt by ₹125 crore. This has brought down its net debt-to-equity ratio to 0.4x, reflecting financial discipline by the company in strengthening its balance sheet position.

Brand and Segment Highlights

Premium brands Pride of Cows and Avvatar Nutrition grew 79% YoY, together contributing 9% to the total revenue versus 6% a year ago. Pride of Cows expanded its presence in Chandigarh and also leveraged the quick-commerce channels for faster deliveries. Avvatar, India’s first 100% vegetarian whey protein brand, released new products like Avvatar Fuel Whey and protein wafer bars. This is strengthening its position in the nutrition segment. Consumer-facing initiatives such as “What’s the Source?” and festival partnerships with Kaun Banega Crorepati and ABP Majha have helped increase customer interaction and brand recall.

Stock Performance

Shares of Parag Milk Foods jumped 12.26% to ₹353.00 as of 10:21 am IST. The trading volumes for the stock stood at 13.22 lakh shares while the market capitalisation stood at ₹4,264 crore.

Management Commentary

Akshali Shah, Executive Director, Parag Milk Foods Ltd, said, “Q2FY26 has been a stupendous quarter, surpassing the ₹1,000 crore revenue milestone — a historic achievement for the company. Despite inflationary pressures, our growth remains robust across categories, driven by consumer confidence and premium product demand. The government’s GST 2.0 reforms, particularly the rate reduction for the dairy sector, will further strengthen industry growth.”

Parag Milk Foods Ltd is one of the leading private dairy FMCG companies in India, incorporated in the year 1992. Its manufacturing capacity is spread over Maharashtra and Andhra Pradesh. Its wide-ranging portfolio covers both the dairy and nutrition categories under the brands of Gowardhan, Go, Pride of Cows, and Avvatar. Parag Milk Foods is a publicly traded company on both the NSE and BSE and operates in the Dairy Products ‍‌‍‍‌‍‌‍‍‌industry.

REF: https://nsearchives.nseindia.com/corporate/PARAGMILK_11112025223314_Press_Release.pdf

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