Parag Milk Foods Doubles Cheese Production Capacity Amid Q1 Financial Results and Management Changes

Parag Milk Foods Doubles Cheese Production Capacity Amid Q1 Financial Results and Management Changes​

Parag Milk Foods Ltd., a leading dairy FMCG company in India, has announced significant operational expansion plans, key leadership appointments, and its Q1 FY27 financial results. The company’s Board approved the doubling of its cheese manufacturing capacity as part of its strategy to meet rising demand across the Cheese and Whey protein sectors.

Operational Expansion and Market Outlook​

The company has decided on a brownfield expansion aimed at increasing its existing cheese manufacturing capacity from 60 metric tonnes per day (MT/day) to approximately 120 MT/day. This investment is allocated an estimated capital expenditure of Rs. 105 Cr, which will be funded through a combination of internal accruals and debt, with completion anticipated by FY28.

Parag Milk Foods operates a strong portfolio under the flagship brand Go Cheese, holding approximately 35% market share in its segment. The company maintains a presence across various formats, including GT, MT, E-commerce, and Q-commerce channels, and supplies institutional customers such as hotels, restaurants, and catering services.

Industry analysts suggest significant growth potential for the sector; according to IMARC Group, the Indian cheese market is anticipated to expand from approximately INR 129 billion in 2025 to around INR 620 billion by 2034, driven by rising urbanization and expanding organized food service channels.

Rahul Kumar Srivastava, Chief Operating Officer at Parag Milk Foods Ltd., stated that cheese serves as a key growth driver for the company and is a strategic pillar of its value-added product portfolio. The increased capacity will enhance manufacturing efficiency and strengthen the ability to meet growing customer demand while supporting future product innovation.

Leadership and Governance Updates​

Parag Milk Foods also announced the elevation of Rakesh Kothari to the role of Chief Financial Officer (CFO) and Key Managerial Personnel (KMP), effective August 6, 2026. Mr. Kothari has been serving in the capacity of President, Finance & Accounts for the past year and will now lead the company's finance functions.

Akshali Shah, Executive Director at Parag Milk Foods Ltd., commented on the appointment, noting that Rakesh Kothari is a valuable member of the leadership team with strong business acumen who understands the company’s operations. This move is intended to drive financial discipline and support sustained business growth as the company continues to diversify its portfolio.

Q1 FY27 Financial Performance​

Parag Milk Foods reported its unaudited consolidated financial results for the quarter ended June 30, 2026. The company registered a modest revenue growth while the New Age business showed robust scaling.

Key highlights from the first quarter of fiscal year 2027 (Q1 FY27) include:

• Revenue: Consolidated revenue reached ₹945 Cr, marking an 11% year-on-year growth.
• Profitability: Gross Profit stood at ₹258 Cr, reflecting a 11% YoY increase. EBITDA was ₹70 Cr, up 6% YoY.
• Net Profit: The company recorded PAT of ₹22 Cr, representing a 20% decline year-on-year.

The financial performance across segments demonstrated varied growth patterns. Flagship categories, which include Ghee, Cheese, Paneer, and Dahi, constituted 61% of the total revenue, having delivered value growth of 10%.

Conversely, the New Age Business—encompassing Pride of Cows and Avvatar—grew robustly at 59% YoY, generating ₹118 Cr. This segment has increased its contribution to 13% of the overall turnover.

The company faced headwind from raw material prices, with commodity inflation noted at 13% YOY and average milk prices reported at INR 42/litre. Despite successfully mitigating some impact through price increases and a favorable product mix, the gross margin contracted slightly by 70 basis points QoQ to 27.3%.

The consolidated financial summary for Q1 FY27 is provided below:

PARAGMILK Stock Price Movement​

Shares of Parag Milk Foods Limited slipped on Thursday to settle at ₹225.99, posting a decline of 1.56% from the previous session's close. The stock traded during the day within a range of ₹220.54 and ₹233.