Financial Performance Highlights
Parag Milk Foods Limited reported strong financial results for FY 2025-26 with revenue from operations reaching ₹3,818 crore, representing 11% year-over-year growth. The company achieved PAT before exceptional items of ₹141 crore, showing 19% growth, while net profit stood at ₹151 crore (22% growth). Key financial metrics include EBITDA of ₹310 crore with 8.1% margin, reduced net debt to ₹484 crore, and operating cash flow of ₹149 crore.
Corporate Actions & Capital Structure
The company completed significant capital restructuring including conversion of FCCBs worth ₹81.22 crore into 57,33,713 equity shares at ₹135 per share, eliminating FCCB liability. Additionally, the company issued 90,00,000 convertible warrants on preferential basis at ₹179.10 per warrant, raising ₹40.30 crore upfront with potential total fund raise of ₹161 crore. The Board recommended a final dividend of ₹1.10 per equity share (11%) subject to shareholder approval at the 34th AGM scheduled for September 29, 2026.
Operational Performance & Business Segments
Core categories (ghee, cheese, paneer) grew 16% in value and contributed 60% of total revenue, with Gowardhan maintaining 22% market share in branded cow ghee and Go Cheese maintaining 35% market share. New age businesses (Pride of Cows, Avvatar) showed exceptional 91% growth, contributing 10% of turnover and crossing ₹100 crore in quarterly revenue. The company operates three manufacturing facilities with recent capacity expansions including automated chikki line and processed cheese lines.
Sustainability & Compliance
The integrated annual report discloses ambitious sustainability targets including 50% renewable energy by 2030, 10% water optimization, and <20% GHG emission reduction. Current achievements include 45% renewable energy usage and 55% water reuse across operations. The company reported compliance with environmental regulations, 100% recycling of plastic waste as EPR, and proper waste management practices. Auditors issued unqualified opinion on financial statements, highlighting trade receivables valuation and revenue recognition as key audit matters.
Credit Rating & Financial Position
India Ratings upgraded the company's credit rating to IND BBB+/Stable for NCDs (₹81 crore) and bank loan facilities (₹600 crore). The company maintained strong financial ratios with current ratio of 1.88 times, debt-equity ratio of 0.43 times, and return on equity of 12.95%. Inventory levels increased to ₹730.30 crore mainly in work-in-progress, while borrowings stood at ₹540.43 crore with secured working capital facilities of ₹336.32 crore from banks.
Governance & Distribution
The Board composition includes Executive Directors Devendra Shah (Chairman), Pritam Shah (MD), Akshali Shah (ED), and independent directors. The company maintains extensive distribution network with 4.6 lakh retail touchpoints, 4,500+ distributors, and export markets including UAE, Singapore, and Mauritius. CSR spending of ₹1.66 crore focused on education, child welfare, and community well-being initiatives.