Milky Mist Dairy Food Limited announced a robust performance for the second quarter and first half of FY27. The company reported a 41.6% year-on-year revenue growth to INR 1,089 crores for Q2 FY27. EBITDA and Profit After Tax also saw significant increases, reaching INR 165.2 crores and INR 77.9 crores, respectively. The company highlighted strong performance in its value-added product segments, particularly paneer and yogurt, and provided an optimistic outlook for future growth driven by capacity expansion and market penetration.
Milky Mist Reports Stellar Q2 FY27 Financials
Milky Mist Dairy Food Limited has announced a strong financial performance for the second quarter and the first half of the financial year 2026-27 (FY27). The company has achieved significant milestones with revenue, EBITDA, and margins reaching new peaks during the quarter.
Q2 FY27 Financial Highlights
For the second quarter of FY27, revenue from operations grew by 41.6% year-on-year to INR 1,089 crores. The company’s gross profit increased by 46.4% to INR 368.8 crores, with gross margins improving by approximately 112 basis points to 33.9%. Sales growth was supported by steady demand and increased consumption across its value-added dairy portfolio. The company noted that paneer, yogurt, and ice cream contributed significantly to sales mix and volume growth, with ice cream revenue up 43% and yogurt growing over 160% year-on-year. EBITDA rose to INR 165.2 crores, up from 53.9% year-on-year, with an improved EBITDA margin of 15.2% compared to 14% in Q2 FY26. Profit after tax (PAT) increased threefold to INR 77.9 crores, compared to INR 28.4 crores in Q2 FY26, resulting in a PAT margin of 7.2%.
H1 FY27 Performance Overview
In the first half of FY27, revenue from operations stood at INR 2,062.9 crores, an increase of 42.5% year-on-year. Gross profit saw a substantial rise of 50.9% to INR 701.9 crores. EBITDA, including other income, rose by 62.9% to INR 310 crores, with an expanded EBITDA margin of 15.03%. Profit after tax increased by 308.4% to INR 142.6 crores from INR 34.9 crores in H1 FY26, achieving a PAT margin of 6.9%.
Business Strategy and Outlook
The company emphasized its focus on strengthening its value-added product business and expanding its market presence. The high-protein segment is identified as a significant growth area, with protein products currently contributing 12% of the top line and projected to reach 18%-20% in the next 2-3 years. Milky Mist has also expanded its manufacturing capabilities, particularly for Skyr and Greek yogurt, with an investment of INR 40 crores at its Perundurai plant. The company is also strategizing for future growth through capacity expansion for paneer production, with plans for an additional 200 tons per day facility. The distribution network continues to be a key priority, with a focus on increasing retail touchpoints and expanding into newer markets like Western and Central India.
Operational and Financial Discipline
Milky Mist highlighted its disciplined approach to growth, balancing opportunities with operational efficiency. The company cited its strong procurement ecosystem and calibrated pricing strategies as key factors in navigating industry challenges such as retail and food inflation. Its Return on Capital Employed (ROCE) stood at 16.1% and Return on Equity (ROE) at 21.1% on an annualized basis in H1 FY27. The net debt stood at INR 32.62 crores as of September 30th.
Product Segment Performance
Paneer continues to be a leading category, showing a year-on-year growth of 44% in the September quarter. The yogurt category has emerged as the fastest-growing, with revenue growth of 168% year-on-year. Cheese and curd segments also showed healthy growth at 31% and 22% respectively. The company is actively investing in its high-protein portfolio, including lactose-free milk, high-protein paneer cubes, and yogurt, to cater to the growing consumer demand for nutritious foods.
Future Growth Drivers
Key drivers for future growth include increasing capacity utilization, deepening market penetration, expanding the product portfolio, and strengthening the distribution network. The company is also focusing on building its high-protein range and other value-added products. Investments in manufacturing, product innovation, and distribution are seen as foundational for pursuing these opportunities. The company plans to expand its procurement network across multiple states including Maharashtra and Karnataka to de-risk its sourcing and meet growing demand.
Source: BSE
