Parag Milk Foods Limited (PMFL) reported strong financial performance in the second quarter of FY27, recording a 23% year-on-year increase in revenue to ₹1,241 crore, supported by volume growth of 12%. The company’s performance reflects continued demand across its flagship dairy categories and New Age business, alongside its focus on expanding value-added dairy products.
The company also reported a 24% increase in gross profit despite elevated milk procurement costs, highlighting its ability to sustain profitability amid input cost pressures. With the festive season approaching, Parag Milk Foods remains optimistic about demand across its product categories.
Ms. Akshali Shah, Executive Director of Parag Milk Foods, said that changing consumer preferences are creating new opportunities for the Indian dairy industry, particularly in quality, purity, nutrition and protein-focused products.
According to Shah, consumers are increasingly looking beyond conventional dairy offerings, encouraging manufacturers to develop more diversified, value-added and nutrition-led products. This shift is creating opportunities for dairy companies to strengthen their portfolios through innovation and investments in processing capabilities.
Expanding Value-Added Dairy and Protein-Rich Products
Parag Milk Foods is focusing on strengthening its cheese and paneer capabilities, expanding distribution networks and introducing innovative products to address evolving consumer requirements.
The company’s strategy reflects a broader transformation within India’s dairy market, where demand for specialised dairy products and convenient nutrition options is creating opportunities beyond traditional liquid milk consumption.
Cheese and paneer remain important value-added categories, supported by their applications in household consumption, food services and the expanding quick-service restaurant segment. Increasing interest in protein-rich diets is also creating opportunities for dairy-based nutritional products.
By investing in manufacturing capabilities and product development, Parag aims to make high-quality, value-added and protein-rich dairy products more accessible to consumers.
The company is also emphasising consumer understanding as part of its product strategy, recognising that changing dietary preferences require manufacturers to focus on nutritional value, product quality, taste and convenience.
Financial Performance Supported by Volume Growth
Parag Milk Foods’ Q2 FY27 performance demonstrates growth across its business portfolio despite higher milk costs. Revenue increased 23% to ₹1,241 crore, while volumes grew 12%, indicating continued demand for the company’s dairy offerings.
Gross profit growth of 24% further highlights the company’s performance during a period of elevated raw milk procurement costs.
| Financial indicator | Q2 FY27 performance |
|---|---|
| Revenue | ₹1,241 crore |
| Revenue growth | 23% |
| Volume growth | 12% |
| Gross profit growth | 24% |
The company’s flagship categories and New Age business continued to deliver healthy growth, contributing to its overall performance.
Festive Season Demand and Future Growth Outlook
As the Indian dairy industry enters the festive season, demand across several dairy categories is expected to remain an important growth driver. Increased consumption of dairy products during festive periods could support sales across traditional and value-added segments.
For Parag Milk Foods, continued investment in cheese and paneer manufacturing, distribution expansion and product innovation will remain central to its growth strategy.
The company’s latest performance also reflects the increasing importance of value-added products in India’s dairy sector. As consumers place greater emphasis on protein intake, nutrition and product quality, dairy manufacturers are positioning themselves to capture opportunities through portfolio diversification.
With sustained investments in processing capabilities, consumer-focused innovation and distribution, Parag Milk Foods is looking to strengthen its position in India’s evolving dairy and nutrition market.
