Parag Milk Foods revenue rises while Q2 profit declines

Parag Milk Foods Limited reported standalone revenue from operations of Rs 1,215.42 crore for the quarter ended September 30, 2026, compared with Rs 981.15 crore a year earlier, while profit after tax declined to Rs 49.26 crore from Rs 55.70 crore as expenses and the current-tax charge increased.

How did Parag Milk Foods perform in the September 2026 quarter?

Parag Milk Foods reported total income of Rs 1,218.13 crore for the quarter ended September 30, 2026, up from Rs 1,000.04 crore in the corresponding quarter of 2025. Revenue from operations supplied Rs 1,215.42 crore of the latest total, while other income was Rs 2.71 crore, down from Rs 18.89 crore a year earlier.

The September-quarter revenue was also above Rs 920.47 crore in the quarter ended June 30, 2026. Total income increased from Rs 922.63 crore in the June quarter, while profit after tax rose from Rs 25.43 crore, showing a higher sequential profit despite the year-on-year decline.

Profit before tax rose to Rs 60.99 crore from Rs 58.52 crore a year earlier, although profit after tax fell. Current tax was Rs 15.56 crore in the September 2026 quarter versus nil in the September 2025 quarter, while deferred tax was a Rs 3.83 crore credit against a Rs 2.82 crore charge a year earlier.

Why did Parag Milk Foods’ profit after tax decline?

Parag Milk Foods’ profit after tax declined because a Rs 15.56 crore current-tax expense and higher operating cost lines outweighed the Rs 2.47 crore increase in profit before tax. Total expenses rose to Rs 1,157.14 crore from Rs 941.52 crore, while total income increased to Rs 1,218.13 crore from Rs 1,000.04 crore.

Cost of materials consumed, the largest expense line, increased by Rs 249.55 crore to Rs 1,028.19 crore from Rs 778.64 crore. The inventory-change line provided an Rs 115.69 crore offset in the latest quarter, compared with an Rs 42.11 crore offset a year earlier, partly reducing the effect of higher material costs.

Employee benefits expense increased to Rs 42.90 crore from Rs 37.42 crore, finance costs rose to Rs 24.21 crore from Rs 17.58 crore, and other expenses increased to Rs 161.01 crore from Rs 134.08 crore. Depreciation and amortisation was Rs 16.52 crore, compared with Rs 15.91 crore in the year-earlier quarter.

Sequentially, total income increased by Rs 295.50 crore from the June 2026 quarter while total expenses increased by Rs 266.91 crore. That movement lifted profit before tax to Rs 60.99 crore from Rs 32.40 crore and profit after tax to Rs 49.26 crore from Rs 25.43 crore.

What do Parag Milk Foods’ half-year results show?

Parag Milk Foods reported standalone revenue from operations of Rs 2,135.89 crore for the half year ended September 30, 2026, compared with Rs 1,811.67 crore in the corresponding half year of 2025. Profit after tax declined to Rs 74.69 crore from Rs 88.05 crore, despite profit before tax increasing to Rs 93.39 crore from Rs 91.12 crore.

Total income for the six months rose to Rs 2,140.76 crore from Rs 1,835.53 crore, and total expenses increased to Rs 2,047.37 crore from Rs 1,744.41 crore. Current tax increased to Rs 23.50 crore from Rs 0.45 crore, while deferred tax became a Rs 4.80 crore credit compared with a Rs 2.62 crore charge.

Materials consumed rose to Rs 1,752.52 crore from Rs 1,490.27 crore, employee benefits expense increased to Rs 85.75 crore from Rs 70.93 crore, and finance costs increased to Rs 44.03 crore from Rs 35.33 crore. Other expenses were Rs 288.88 crore, compared with Rs 259.22 crore, while the inventory-change offset was Rs 156.50 crore against Rs 141.28 crore.

Basic earnings per share, not annualised, were Rs 5.97 for the half year, down from Rs 7.38 a year earlier. Basic earnings per share for the September quarter were Rs 3.94, compared with Rs 4.67 in the prior-year quarter and Rs 2.03 in the June 2026 quarter.

What changed in Parag Milk Foods’ balance sheet and cash flow?

Parag Milk Foods’ non-current borrowings rose to Rs 219.34 crore at September 30, 2026, from Rs 111.09 crore at March 31, 2026. Current borrowings increased to Rs 440.49 crore from Rs 374.29 crore over the same period.

Inventories increased to Rs 872.81 crore from Rs 713.09 crore, while trade receivables rose to Rs 274.85 crore from Rs 230.78 crore. Property, plant and equipment increased to Rs 349.36 crore from Rs 328.16 crore, while capital work-in-progress declined to Rs 20.86 crore from Rs 26.45 crore.

Net cash used in operating activities was Rs 67.85 crore for the half year ended September 30, 2026, compared with net cash generated of Rs 95.52 crore a year earlier. The cash-flow statement recorded a Rs 159.72 crore increase in inventories and a Rs 59.91 crore increase in trade and other receivables, compared with increases of Rs 149.74 crore and Rs 11.67 crore respectively in the prior-year half.

Cash and cash equivalents were Rs 5.80 crore at September 30, 2026, versus Rs 2.40 crore at the beginning of the half year. Parag Milk Foods reported Rs 149.35 crore of proceeds from long-term borrowings and Rs 48.94 crore of property, plant and equipment purchases during the six months.

What corporate action did Parag Milk Foods approve with the results?

Parag Milk Foods’ board approved the amalgamation of Bhagyalaxmi Dairy Farms Private Limited, a wholly owned subsidiary, with Parag Milk Foods on November 3, 2026. The proposed scheme is under Sections 230 to 232 of the Companies Act, 2013.

The scheme requires sanction from the National Company Law Tribunal and may require shareholder, creditor and other regulatory approvals. Parag Milk Foods said the scheme had not been given effect in its standalone financial results pending those approvals.

The standalone results cover one operating segment, Milk and Milk Related Products, under Indian Accounting Standard 108. The board approved the unaudited results on November 3, 2026, and the statutory auditors issued an unmodified review conclusion.

Conclusion

Parag Milk Foods delivered higher standalone revenue in both the September 2026 quarter and the first half, with quarterly revenue reaching Rs 1,215.42 crore and half-year revenue reaching Rs 2,135.89 crore. Profit after tax declined year on year in both periods, as materials, employee, finance and other expenses increased and current tax rose from the prior-year levels.

The next reported results can show whether inventories of Rs 872.81 crore, trade receivables of Rs 274.85 crore and borrowings of Rs 659.83 crore change after September 30, 2026. Investors can also monitor the tribunal, shareholder, creditor and regulatory approvals required for the proposed amalgamation of Bhagyalaxmi Dairy Farms Private Limited.