Parag Milk Foods Revenue Up 10.93% as Q1 Profit Falls 20%

Parag Milk Foods Limited reported 10.93% year-on-year revenue growth to ₹944.57 crore in Q1 FY27, while consolidated net profit fell 20.05% to ₹22.05 crore, as higher milk procurement prices and input costs affected profitability. The results show that sales growth did not fully offset pressure on the company’s earnings during the June 2026 quarter.

What did PMFL report in Q1 FY27?

PMFL reported consolidated net sales of ₹944.57 crore for the quarter ended 30 June 2026, compared with ₹851.52 crore in the corresponding quarter a year earlier. This represented year-on-year growth of 10.93%. Revenue was broadly flat sequentially, declining 0.08% from ₹945.34 crore in the preceding March 2026 quarter.

Consolidated net profit stood at ₹22.05 crore, down from ₹27.58 crore in the June 2025 quarter. The year-on-year decline was 20.05%. Profit also fell 31.61% from ₹32.24 crore in the March 2026 quarter, indicating that the increase in sales was accompanied by pressure below the operating line.

The company reported earnings per share of ₹1.76 for Q1 FY27, compared with ₹2.31 in Q1 FY26. Operating profit rose 17.92% year-on-year to ₹68.25 crore, while EBITDA was reported at ₹69.66 crore, up 6.32% from ₹65.52 crore a year earlier. These are separately disclosed metrics in the available results material.

Why did PMFL’s profit decline despite higher revenue?

PMFL said its quarterly performance was affected by sustained inflation in milk procurement prices and elevated input costs across the dairy value chain. Executive Director Akshali Shah said the company nevertheless delivered steady growth, citing the resilience of its business model, brands and consumer trust.

The cost pressure is reflected in the difference between revenue growth and net-profit movement. While sales increased by nearly 11% from the year-earlier period, profit before tax rose only 0.38% to ₹29.29 crore. PBDT rose 4.97% year-on-year to ₹47.76 crore, showing that the increase in costs narrowed the benefit of revenue expansion as earnings moved towards the net-profit level.

On a sequential basis, operating profit increased 15.00% from ₹59.35 crore in Q4 FY26. However, PBDT declined 17.18%, profit before tax fell 27.03%, and net profit declined 31.61%. The reported figures therefore point to differing movements across operating and post-operating profitability measures during the quarter.

How do the Q1 FY27 figures compare with earlier periods?

PMFL’s Q1 FY27 revenue was higher than the ₹851.52 crore reported in Q1 FY26 but remained lower than the ₹1,008.00 crore sales reported for the September 2025 quarter. The company’s disclosed quarterly sales history also shows revenue of ₹1,013 crore in December 2025 and ₹945 crore in March 2026.

The comparison highlights the seasonal and cost-sensitive nature of the dairy business. Milk procurement is a significant input for PMFL, and changes in procurement prices can affect margins even when demand supports sales growth. The company specifically identified milk costs and broader dairy-chain input inflation as factors affecting the June-quarter performance.

What is PMFL’s Q2 FY27 reporting schedule?

PMFL scheduled a board meeting for 3 November 2026 to consider and approve unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026. A recent update also states that the board approved Q2 FY27 unaudited results and a merger scheme, though the available material does not provide the Q2 financial figures or the terms of that scheme.

The company has scheduled an analyst and investor conference call for 4 November 2026 at 2:00 PM IST to discuss financial and operational performance for Q2 and the first half of FY27. PMFL said no unpublished price-sensitive information would be shared at the meeting.

The trading window for PMFL equity shares was closed from 1 October 2026 to 5 November 2026 under its insider-trading policy. The September 2026 quarter covers the period from 1 July to 30 September 2026. Its comparable Q2 FY26 base was revenue of ₹1,008.00 crore and profit of ₹46.00 crore, according to the provided data.

What does the Q1 performance mean for investors and the dairy sector?

The Q1 figures show that PMFL maintained double-digit annual sales growth despite higher costs, but the decline in net profit makes margin movement a key issue for investors. The gap between 10.93% revenue growth and the 20.05% fall in profit demonstrates the effect of milk procurement and input-cost inflation on the company’s reported earnings.

For the broader dairy sector, procurement costs remain important because raw milk is central to production economics. PMFL’s results provide a company-specific example of how higher dairy-chain costs can affect earnings even when revenue increases. The disclosed information does not provide a forecast for milk prices, margins or future profit.

The Q2 result and analyst call will provide the next reported update on sales, profitability and operations for the September quarter. Investors will also be able to assess any details released on the board-approved merger scheme, as the supplied information does not explain its structure, financial impact or implementation timeline.

Conclusion

PMFL’s Q1 FY27 performance combined year-on-year revenue growth of 10.93% with a 20.05% decline in consolidated net profit. Operating profit increased, but higher milk procurement prices and other input costs constrained earnings as reflected in the lower profit before tax and net-profit figures.

The next development to watch is PMFL’s Q2 and H1 FY27 discussion on 4 November 2026, following the board meeting on 3 November. The company’s disclosures on September-quarter profitability, milk-cost conditions and the merger scheme will provide further context on its financial and operational position.