Key Developments

1. Capacity Expansion Approval

The Board of Directors approved the brownfield expansion of cheese manufacturing capacity by an additional 60 MT/day, thereby increasing the existing capacity from 60 MT/day to 120 MT/day (approx).

  • Estimated Capital Expenditure: ₹105 crore
  • Funding: Mix of internal accruals and debt
  • Expected Completion: By FY28
  • Strategic Purpose: To cater to growing demand for Cheese & Whey protein business and spot new avenues of growth

2. Management Appointment

The Board appointed Mr. Rakesh Kothari as Chief Financial Officer & Key Managerial Personnel with effect from August 7, 2026.

  • Previous Role: President, Finance & Accounts for the past year
  • Experience: Over 25 years across banking and corporate finance, with previous roles at Citibank and Sadhana Nitro Chem
  • Expertise Areas: Financial planning, treasury operations, investor relations, risk management, and business finance

3. Q1 FY27 Financial Results (Unaudited Standalone and Consolidated)

Consolidated Financial Performance – Q1 FY27 (Quarter ended June 30, 2026)
  • Revenue: ₹945 crore, up 11% YoY
  • Volume Growth: 3% YoY
  • Gross Profit: ₹258 crore, up 11% YoY
  • Gross Margin: 27.3% vs 27.4% LY (Q1FY26)
  • EBITDA: ₹70 crore, up 6% YoY
  • EBITDA Margin: 7.4% versus 7.7% in Q1FY26
  • PBT: ₹29 crore, up 0.4% YoY
  • PAT: ₹22 crore, down 20% YoY (mainly due to current tax impact)
Business Segment Performance
  • Flagship Categories (Ghee, Cheese, Paneer, Dahi): Contributed 61% of total revenue
  • Volume decline: 2% YoY
  • Value growth: 10% YoY
  • Reason for modest growth: Transient slowdown in specific channels
  • New Age Business (Pride of Cows and Avvatar): Revenue of ₹118 crore
  • Growth: 59% YoY
  • Contribution: 13% of overall turnover (vs 9% LY)
  • Avvatar protein wafer bar and RTD protein coffee contributed 7% share in brand revenue during Q1
Raw Material Price Environment
  • Milk Procurement Prices: Average ₹42/liter
  • Commodity Inflation: 13% YoY and flat sequentially during Q1FY27
  • QoQ Margin Impact: Gross margin decreased by 70 bps QoQ to 27.3% from 28.0% in Q4
  • YoY Margin Impact: Despite 13% YoY milk price increase, gross margin sustained at 27.3% vs 27.4% in Q1Y26 through measured price increases and better product portfolio
Market Context and Outlook
  • Indian Cheese Market: Expected to grow from approximately ₹129 billion in 2025 to around ₹620 billion by 2034 (IMARC Group)
  • Growth Drivers: Rising urbanization, evolving food preferences, expansion of organized food service channels
  • Management Outlook: Encouraged by improved milk availability supported by favorable monsoon and seasonal demand uplift during festive period
Brand and Marketing Initiatives
  • Gowardhan & Go Brands: Strengthened consumer reach through digital commerce, market activations, and strategic media partnerships (Bappa Majha on ABP Majha & TV9 Marathi)
  • Pride of Cows: Reinforced premium positioning through curated digital experiences, influencer collaborations, and occasion-led consumer engagement
  • Avvatar: Partnered with India's Got Latent for brand visibility; launched RTD Protein Cold Coffee; consistent online and offline marketing activities

Manufacturing and Operational Details

  • Manufacturing Facilities: Manchar and Thorandale in Maharashtra; Palamner in Andhra Pradesh
  • Dairy Farm: Bhagyalaxmi houses more than 5,000 cows with automated milking process
  • Product Portfolio: Traditional products (Ghee, Dahi, Paneer, Liquid Milk) under "Gowardhan" brand; value-added products (Cheese, UHT Milk, Buttermilk, Lassi, Flavored Milk Shakes) under "Go" brand; premium "Pride of Cows" brand; sports nutrition under "Avvatar" brand