Parag Milk Foods posts PAT of Rs 26 crore in Q4; EBITDA margin rises to 8.2%

Business Standard

03-05-2025

Parag Milk Foods has reported a consolidated net profit of Rs 26 crore in Q4 FY25, which is higher by 167% as compared with the PAT of Rs 10 crore posted in Q4 FY24.
Revenue rose by 16% year-over-year (YoY) to Rs 918 crore during the period under review.
EBITDA improved by 69% to Rs 75 crore in Q4 FY25 from Rs 45 crore in Q4 FY24. EBITDA margin was 8.2% in Q4 FY25 as against 5.6% in Q4 FY24.
Profit before tax in Q4 FY25 stood at Rs 33 crore, up by 141% from Rs 14 crore posted in Q4 FY24.
For FY25, Parag Milk has recorded a net profit of Rs 119 crore (up 31% YoY) and revenue of Rs 3,432 crore (up 9% YoY).
Cash flow from operations generated in FY25 was Rs 212 crore.
Parag Milk said that the business has witnessed strong volume growth of 10% during FY25 YoY aided by healthy volume growth in its core categories. The core categories of mainly ghee, cheese and paneer have witnessed a volume growth of 18% for Q4 FY25 and 17% for FY25.
As per the latest IMARC report 2024; the flagship brand Gowardhan Ghee commands an 22% market share in the branded cow ghee segment (No. 1 position), while the brand Go Cheese commands 35% market share in the Cheese category (No. 2 position).
The average milk prices during Q4 FY25 were at Rs 37 per litre; up 12% YoY, and FY25 milk prices were at Rs 34 per litre; almost at par YoY while the company handled and average of nearly 15 lac liters of milk per day. Despite volatility in milk prices during the period, the company has improved its gross margins.
Gross profit margins (GPM) expanded by 130 basis points YoY during FY25 to 25.8% as against 24.5% in FY24, led by improved product mix and the ability of its brands to pass on the input cost increase and command a price premium vs competition.
On 03 April 2025, Parag Milk Foods had recently announced the raising of Rs 161 crore through the issuance of convertible warrants on a preferential basis.
The capital will be utilized to optimize debt, strengthen working capital and drive growth initiatives. The development underscores robust investor confidence and reinforces Parag Milk Foods commitment to expanding its leadership in the dairy FMCG space.
Devendra Shah, chairman of Parag Milk Foods, said: Our performance in FY25 marks a pivotal milestone in Parag Milk Foods journey towards building a future-ready, sustainable, and profitable business.
Delivering the highest-ever revenues back-to-back in multiple quarters, coupled with strong operating cash flows and improved profitability, is a result of our disciplined execution and long-term vision. We have stayed committed to innovation, brand building, and operational excellence, while ensuring agility in a dynamic environment.
Our investments in expanding distribution, product diversification, and impact-led marketing are not just building brand equity but creating enduring value. We have strengthened governance by adopting leading best practises together with excellence in business processes to transform the organisation from promoter driven to professional management."
The scrip had gained 1.39% to end at Rs 182.15 on the BSE.