Parag Milk Foods tumbles after Q3 PAT declines 18% YoY amid commodity inflation headwinds

Parag Milk Foods slumped 7.72% to Rs 242.50 after the company reported 18% drop in consolidated to Rs 30 crore despite a 14% rise in revenue to Rs 1,013 crore in Q3 FY26 as compared with Q3 FY25.

On a YoY basis in Q3 FY26, gross profit increased to Rs 262 crore, up 9%. However, gross margin declined by nearly 130 basis points, from 27.2% to 25.9% due to cost inflation offset by favourable portfolio mix.

EBITDA declined 5% YoY to Rs 76 crore as against Rs 80 crore, with EBITDA margin contracting by 150 basis points to 7.5%, largely tracking the gross margin compression.

Profit before tax in Q3 FY26 stood at Rs 33 crore, down by 14% from Rs 38 crore recorded in Q3 FY25.

Akshali Shah, executive director, PMFL, said: Our value-added dairy engine continues to power ahead, reaffirming our dominance in core categories.

At the same time, the acceleration of our New Age Business comprising of Pride of Cows and Avvatar, signals the emergence of Parag as a truly modern, consumer-centric FMCG brands driving premiumization with superior product offerings.

The headwinds of commodity inflation are likely to continue in the foreseeable future. The company is well poised to navigate through these challenging times with the power of its brands, superior offerings and improved product mix.

Parag Milk Foods, established in 1992, is the largest private dairy FMCG company with a pan India presence.

Powered by Capital Market - Live News