Parag Milk Foods shares drop 7% post Q1 results: Time to buy the dip?

The company's profit after tax (PAT) figure stood at ₹28 crore during the quarter ending June 30, 2025, indicating a minor rise of 1 per cent from ₹27 crore recorded in Q1FY25

Parag Milk Foods share price today: Shares of Parag Milk Foods Ltd. experienced a drop of 7 per cent on Tuesday, July 22, 2025, logging an intraday low of ₹235.60 after the company released its earnings for the first quarter of the financial year 2025-2026 (Q1FY26).

At 11:45 AM, shares of Parag Milk Foods were trading at ₹244, down by 3.81 per cent on the National Stock Exchange. In comparison, NSE Nifty remained largely flat, albeit with a negative bias, down by 0.11 per cent or 26 points, quoting 25,064.05. So far this calendar year, the shares of the company have experienced a double-digit rise of 34 per cent.  CATCH STOCK MARKET LIVE UPDATES TODAY

Parag Milk Foods Q1FY26 earnings

The company's profit after tax (PAT) figure stood at ₹28 crore during the quarter ending June 30, 2025, indicating a minor rise of 1 per cent from ₹27 crore recorded in the corresponding quarter of the previous financial year. Consolidated revenue for the quarter under review stood at ₹852 crore, up by 12 per cent from ₹758 crore reported in the same quarter of FY25. The company's Ebitda figure increased by 6 per cent to ₹66 crore in Q1FY26 as against ₹62 crore in Q1FY25.

During the quarter, the company witnessed a volume growth of 5 per cent year-on-year (Y-o-Y), backed by robust growth in core categories. The company's gross profit margins (GPM) remained largely flat during Q1FY26 and stood at 27.4 per cent as compared to 27.5 per cent recorded in Q1FY25. "Q1FY26 has set a promising tone for Parag Milk Foods as we begin the new financial year. Delivering our highest-ever first-quarter revenue reflects our strategic focus and disciplined execution," said Devendra Shah, Chairman, Parag Milk Foods.

"We have handled an average of 16.5 lakh litre of milk per day during Q1, which is 10 per cent higher over the immediate last quarter...Our growing portfolio of value-added products, including traditional sweets, ghee, and cheese, is well-positioned to meet the festive demand," said Shah.  ALSO READ | GMDC hits 18-month high. What's driving minerals stock 23% rally in 3 days?

Brokerage View -  Religare

Ravi Singh, SVP-retail research at Religare Broking, believes that 'buy on dip' might be the right investor strategy considering the current market price of the stock.

"On Technical charts Parag Milk continues to exhibit pronounced bullish momentum with gain of nearly 10 per cent in July,2025. On the daily time frame with the stock trading firmly within a well-defined ascending channel pattern and witnessed a sharp rebound from the 20-day EMA. The recent pullback highlighted the prevailing uptrend and shows buying interest at lower levels," the analyst said while maintaining a 'Hold' rating on the stock.

On the basis of current price action, buy on dip is a prudent strategy, so its recommended to build fresh long positions near 230-235, with an upside potential of 260 and 285 in the near term. To protect against downside risk it’s advisable to put a strict stop loss below 220, Religare's Ravi Singh said.