Parag Milk Foods Limited saw its stock jump over 13% on May 5, 2025, as investors reacted positively to the company’s strong Q4 and FY25 financial performance. The surge followed the release of its investor presentation, which highlighted growth in key operational metrics, expansion in margins, and strategic focus on high-value categories.
For the financial year ended March 31, 2025, Parag Milk Foods reported consolidated revenue of ₹3,432 crore, up 9% year-on-year. This growth was underpinned by a 17% volume increase in its core categories. EBITDA rose 30% to ₹293 crore, and the EBITDA margin expanded to 8.5% from 7.2% in the previous year, reflecting improved operational efficiency and a better product mix.
The company also reported a 31% increase in profit after tax (PAT), reaching ₹119 crore, with PAT margins improving to 3.5%. Cash flow from operations stood at ₹212 crore, reinforcing the company’s strong liquidity position.
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In the final quarter of FY25, consolidated revenue rose 16% year-on-year to ₹918 crore. PAT stood at ₹26 crore, marking a sharp 167% jump compared to the same period last year. EBITDA margin improved significantly from 5.6% to 8.2%.
Standalone results mirrored this robust performance. Revenue touched ₹899 crore in Q4, while PAT surged 143% year-on-year to ₹32 crore, driven by a healthier gross margin and higher sales realisation.
Parag Milk Foods continues to reinforce its leadership in key product categories. It holds a 35% market share in the branded cheese segment and a 22% market share in the branded cow ghee segment, according to IMARC. These segments form part of the company’s core categories, which accounted for 57% of its total business in FY25.
The company’s premiumisation strategy, through products like ‘Pride of Cows’ and its Avvatar sports nutrition range, also gained traction, contributing 6% to overall revenue with a 29% year-on-year growth.
In Q4FY25, milk procurement prices rose 12% year-on-year and 9% quarter-on-quarter. Despite rising input costs, the company managed to protect and improve margins due to its efficient procurement strategy. Parag procures approximately 15 lakh litres of milk daily through a wide farmer network and over 2,400 village-level collection centres, enabling it to maintain consistent supply and quality.
The company has outlined its strategic focus areas:
With improved return ratios, reduced net working capital days, and consistent revenue CAGR of 18% from FY22 to FY25, Parag Milk Foods is positioning itself for sustainable long-term growth.
Founded in 1992, Parag Milk Foods is a leading dairy-FMCG company in India, operating popular brands like Gowardhan, Go, Pride of Cows, and Avvatar. The company focuses on high-quality dairy products and has developed a diversified portfolio that includes value-added products such as protein supplements, fresh cheese, and ready-to-eat Indian sweets. Its operations are supported by strong distribution networks and modern processing plants across multiple Indian states.
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Published on: May 5, 2025, 3:06 PM IST
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