PMFL posts record Rs 1,241 crore Q2 revenue, volume up 12%

Parag Milk Foods Limited (PMFL) posted record Q2 FY27 revenue of Rs 1,241 crore, up 23% year on year, with underlying volume up 12%, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 37% to Rs 101 crore excluding a prior-year one-off.

Why did PMFL reach record Q2 FY27 revenue?

PMFL reached Rs 1,241 crore of revenue in Q2 FY27, as 12% volume growth combined with 23% value growth. Management identified Ghee, Cheese, Paneer and Curd as the flagship categories behind much of the outcome: together they generated Rs 778 crore, or 63% of quarterly revenue, with 20% value growth and 7% volume growth.

The flagship mix shows that revenue expansion was not limited to price-led value growth, because reported volumes across PMFL rose faster than volumes in the four core categories. PMFL said Paneer achieved its highest-ever quarterly volumes, supported by a shift from unorganised products to branded paneer and greater protein consumption. Cheese also improved from the previous quarter, while its hotel, restaurant and catering (HoReCa) business recorded double-digit growth.

For H1 FY27, PMFL reported revenue of Rs 2,185 crore, up 18% in value terms and 8% in volume terms. The Q2 growth rates of 23% in value and 12% in volume were therefore higher than the corresponding H1 FY27 rates, indicating that the September quarter delivered a faster pace of expansion than the six-month aggregate.

How did PMFL's Q2 FY27 margins change?

PMFL reported Q2 FY27 gross profit of Rs 323 crore, 24% higher year on year, despite what management described as elevated milk costs. Gross profit margin (GPM) improved to 26.0% from 25.8% in the previous-year quarter. EBITDA was Rs 101 crore, and its 8.1% margin was 0.8 percentage points above 7.3% last year when the prior-year one-off is excluded.

PMFL's profit after tax (PAT) was Rs 42 crore in Q2 FY27. PMFL described the reported year-on-year movement as an optical 8% decline, but said PAT grew 42% after excluding the prior-year one-off; the PAT margin was 3.4%, compared with 2.9% on the same excluding-one-off basis. This makes the treatment of the earlier one-off material to interpreting the year-on-year profit comparison.

For H1 FY27, EBITDA was Rs 170 crore, up 23% excluding the prior-year one-off, and the EBITDA margin increased to 7.8% from 7.5%. H1 PAT was Rs 64 crore, with a reported 13% decline but 12% growth excluding that item; its 2.9% margin was below the 3.1% comparison margin. Thus, the quarterly PAT margin improved on the disclosed comparable basis, while the H1 PAT margin did not.

Which PMFL businesses drove Q2 FY27 sales?

PMFL's New Age Business, comprising Pride of Cows and Avvatar, generated Rs 154 crore in Q2 FY27, rising 71% year on year. Its share of revenue increased to 12% from 9% a year earlier. In H1 FY27, this business delivered Rs 273 crore of revenue, up 66%, and again accounted for 12% of turnover.

Pride of Cows introduced Lactose-Free Milk during the quarter and moved all Greek yoghurt flavours to no added sugar, alongside a new brand identity tied to the egret at its farm. Avvatar entered protein snacking with Popped Protein Chips in Magic Masala and Pudina flavours, each offering 10 grams of protein in a 30-gram pack. It also introduced six whey variants across Performance, Alpha and naturally sweetened ranges.

PMFL said Avvatar has scaled 27 times over the last five years and receives more than 75% of its revenue through e-commerce, quick commerce and its website. The brand was the official protein partner for India's Got Latent Season 2, which PMFL said generated 336 million YouTube views, and distributed more than 45,000 product samples through an IndiGo Airlines anniversary activity and campus events.

Gowardhan and Go Cheese also received channel-specific promotion during Q2 FY27. PMFL cited its fifth consecutive association with Kaun Banega Crorepati, festive television programming, quick-commerce campaigns and influencer activity for Gowardhan. For Go Cheese, it recognised HoReCa partners through the Golden Stretch Award, held outlet education on cream cheese applications and ran modern-trade sampling alongside quick-commerce festive campaigns.

What capacity plans did PMFL approve?

PMFL's board approved about Rs 100 crore to expand paneer capacity at Manchar and Palamaner from 20 metric tonnes per day to 80 metric tonnes per day. The project covers regular and high-protein paneer, with commissioning expected by June 2027. The stated capacity increase follows PMFL's report of its highest-ever quarterly paneer volumes in Q2 FY27.

The board also approved Rs 105 crore to double cheese capacity from 60 metric tonnes per day to 120 metric tonnes per day, with completion targeted in FY28. PMFL said the paneer and cheese investments are intended to increase scale across its brands and support a move towards value-added and protein-led offerings. These are plans and targets rather than completed capacity additions.

Separately, the board approved the proposed amalgamation of Bhagyalaxmi Dairy Farm Pvt. Ltd., PMFL's 100% subsidiary, with PMFL, subject to required approvals. PMFL said the proposal is likely to create operational synergies through its distribution network and more efficient use of capital and resources. The November 3, 2026 announcement did not provide a timetable for receiving those approvals.

Conclusion

PMFL's Q2 FY27 result combined record revenue of Rs 1,241 crore, 12% volume growth and an EBITDA margin of 8.1%. Flagship Ghee, Cheese, Paneer and Curd produced Rs 778 crore, while the faster-growing New Age Business added Rs 154 crore and lifted its turnover contribution by 3 percentage points from the prior year.

The next disclosed milestones are paneer commissioning by June 2027 and cheese-capacity completion targeted in FY28, backed by about Rs 205 crore of combined investment. PMFL also said the proposed amalgamation of its 100% subsidiary remains subject to requisite approvals, while management cited the festive-season demand outlook across its categories.