Milky Mist Dairy Food reported strong financial performance in the second quarter of FY27, with net profit increasing 175% year-on-year to ₹75 crore, compared with ₹28.39 crore in the corresponding quarter of the previous financial year. Revenue from operations rose 42% to ₹1,089.40 crore in the September quarter, supported by higher sales volumes, expanding distribution and strong consumer demand for value-added dairy products.
Following the announcement, shares of Milky Mist Dairy Food rallied by as much as 5% to reach an intraday high of ₹320 on the BSE on Friday. The company’s quarterly performance reflected improved profitability, operational efficiencies and a favourable product mix, highlighting the growing contribution of value-added dairy products to its business.
Higher Margins and Operational Efficiencies Drive Profitability
Milky Mist recorded an EBITDA margin of 15.17% during the quarter, compared with 13.95% in the corresponding period last year. The improvement was primarily driven by increased sales volumes, better operational efficiencies and a favourable product mix.
The company also reported record quarterly highs in both revenue and gross profit during Q2 FY27. Strong performance across its product portfolio, supported by growth in both value and volume terms, contributed to the improved financial results.
The increase in profit after tax was additionally supported by loan repayments and the creation of a deferred tax asset in accordance with applicable accounting standards. These factors, alongside stronger EBITDA performance, contributed to the significant improvement in the company’s bottom line.
| Financial Indicator | Q2 FY27 | Year-on-Year Change |
|---|---|---|
| Revenue from operations | ₹1,089.40 crore | +42% |
| Net profit (PAT) | ₹75 crore | +175% |
| Previous-year PAT | ₹28.39 crore | — |
| EBITDA margin | 15.17% | Up from 13.95% |
For the first half of FY27, revenue from operations increased 42.5% year-on-year, while EBITDA grew 62.9%. Profit after tax recorded an even stronger increase of 308.4%, demonstrating the company’s improving financial performance during the first six months of the financial year.
Value-Added Dairy and Protein Products Lead Growth
The company’s expanding value-added dairy portfolio remained a major contributor to its quarterly growth. Milky Mist reported strong demand across categories, with protein-focused products emerging as its fastest-growing segment. Yoghurt continued to be the fastest-growing product category during the quarter.
To strengthen its position in the functional and protein-rich dairy segment, the company introduced Skyr and Greek yoghurt in four-pack formats. These launches build on its previous quarter’s introduction of high-protein paneer cubes.
Milky Mist also expanded its product portfolio with high-protein lactose-free milk, manufactured using its existing production facilities. The strategy reflects increasing consumer interest in convenient dairy products that offer higher protein content and additional nutritional benefits.
The company’s focus on these categories aligns with broader changes in the Indian dairy market, where consumers are increasingly exploring value-added products such as Greek yoghurt, high-protein paneer, lactose-free milk and other specialised dairy offerings.
Paneer Volumes Benefit from Regulatory Enforcement
Commenting on the company’s performance, K Rathnam, Whole-Time Director and Chief Executive Officer, said Milky Mist achieved higher revenue growth, improved margins and stronger profitability despite agricultural inflation, the impact of El Niño and geopolitical uncertainties.
Rathnam also highlighted the company’s progress in increasing paneer sales volumes by approximately 5%, supported by actions against the unorganised sector. He added that regulatory enforcement measures could benefit the organised dairy industry over the longer term.
The development is significant for India’s organised dairy market, particularly in categories such as paneer, where competition from unorganised producers remains considerable. Stronger regulatory enforcement could encourage improved quality standards, food safety practices and greater consumer confidence in branded dairy products.
Expansion Plans and Festive Demand to Support Future Growth
Looking ahead, Milky Mist plans to continue broadening its value-added dairy portfolio, expanding its distribution network and improving manufacturing capacity utilisation. The company also intends to increase investments in milk procurement and manufacturing infrastructure to support its anticipated growth.
Strengthening procurement capabilities will remain important as the company expands production across multiple dairy categories. Consistent access to quality raw milk, efficient processing infrastructure and reliable distribution will be essential to maintaining product quality and meeting rising demand.
The upcoming festive season is also expected to create favourable demand conditions across product categories. Milky Mist believes it is well positioned to capitalise on these opportunities and maintain its growth momentum.
The company’s Q2 FY27 performance highlights the increasing importance of value-added dairy products in India’s evolving dairy industry. With strong growth in protein-focused products, improved operating margins and continued investment in production and distribution, Milky Mist is positioning itself to capture a larger share of the country’s expanding branded dairy market.