Milky Mist Dairy Food Ltd has reported a strong financial performance for the second quarter of FY2026-27 (Q2FY27), achieving its highest-ever quarterly revenue as growing demand for value-added dairy products, improved operational efficiencies and a favourable product mix strengthened its profitability. The company’s revenue from operations increased 42% year-on-year (YoY) to ₹1,089 crore for the quarter ended September 2026, compared with the corresponding period last year.
The company’s net profit nearly tripled to ₹78 crore, up from ₹28 crore in Q2FY26. The improvement was supported by higher sales volumes, EBITDA expansion, operational efficiencies and a deferred tax impact. Gross profit and EBITDA also reached new quarterly highs, reflecting the company’s ability to maintain growth despite rising input costs across the dairy supply chain.
During the first half of FY2026-27 (H1FY27), Milky Mist recorded 42.5% year-on-year growth in revenue from operations, while EBITDA increased by 62.9%. Net profit for the half-year period grew almost fourfold compared with the previous year, highlighting the company’s improving profitability and expanding market presence.
Value-Added Dairy Products Strengthen Revenue and Profitability
The company’s performance was largely driven by its diversified portfolio of value-added dairy products, particularly paneer, cheese and curd. These categories accounted for the largest shares of quarterly revenue, demonstrating the growing importance of processed and protein-rich dairy products in India’s organised dairy market.
According to the company’s management, Milky Mist achieved strong growth despite facing 10–11% inflation in milk, fodder and feed prices. Calibrated product price increases, improved capacity utilisation and operational efficiencies helped offset the impact of higher procurement and production costs.
The company’s revenue contribution by major product categories during Q2FY27 was as follows:
| Product Category | Revenue Contribution |
|---|---|
| Paneer | 44% |
| Cheese | 31% |
| Curd | 22% |
Together, these three categories accounted for 97% of the company’s reported revenue contribution across the specified product segments, highlighting their significance in its business portfolio.
K. Rathnam, Whole-time Director and CEO of Milky Mist Dairy Foods, stated that the company’s wide range of value-added products played an important role in delivering strong growth. He also highlighted the contribution of capacity utilisation, operational improvements and pricing strategies in managing the inflationary environment.
Expansion of Protein-Focused Dairy Portfolio
Milky Mist is further strengthening its position in the protein-focused dairy segment through new product launches and portfolio diversification. During the quarter, the company introduced Skyr and Greek yogurt across various product categories. It also launched high-protein lactose-free milk using its existing manufacturing facilities.
The protein-focused category currently contributes approximately 12–14% of the company’s top line by value. This segment represents an important growth opportunity as consumer demand increasingly shifts towards protein-rich, convenient and nutrition-oriented dairy products.
Products such as Greek yogurt, Skyr, paneer and high-protein milk allow dairy manufacturers to target consumers seeking alternatives to conventional dairy offerings. The expansion of these categories also supports greater product differentiation and value realisation across the dairy industry.
Geographic Expansion and Full-Year Growth Outlook
Milky Mist continues to maintain a strong presence in southern India, which contributes approximately 69% of its total revenue. The remaining 31% comes from markets outside the South. The company has increased its non-South revenue contribution by around 2–3 percentage points over recent years, indicating gradual geographical expansion.
The company remains confident about sustaining its growth momentum and has retained its earlier full-year FY2026-27 revenue growth guidance of 33–34%. Management expects the upcoming festive season to support demand across dairy categories, providing additional opportunities for sales growth.
Sathishkumar T, Chairman and Managing Director of Milky Mist Dairy Food, expressed confidence in the company’s positioning ahead of the festive season and its ability to build on the existing business momentum.
Milk Price Trends and El Niño Concerns
Commenting on the dairy industry’s input-cost environment, Rathnam observed that milk prices are currently at elevated levels. He indicated that prices in Tamil Nadu are not expected to increase further, although some other regions could experience moderate price increases depending on prevailing weather conditions.
Potential El Niño conditions remain an important consideration for India’s dairy sector. Weather-related disruptions can affect fodder availability, agricultural production, livestock productivity and feed costs, ultimately influencing milk procurement prices.
For organised dairy processors, maintaining procurement efficiency, strengthening farmer relationships and optimising manufacturing operations will remain essential to protecting margins.
Milky Mist’s Q2FY27 performance highlights the growing commercial importance of value-added dairy products in India’s evolving dairy market. With strong revenue growth, expanding protein-focused offerings and gradual geographical diversification, the company is positioning itself to capitalise on changing consumer preferences while navigating input-cost pressures and uncertainties in the dairy supply chain.
