Parag Milk Foods Limited – Q4 FY26 Results

key financial highlights

• Revenue from Operations:
  • Total Income (Q4 FY26): ₹945.34 Cr
    • QoQ Change: -6.65%
    • YoY Change: +2.95%
  • Previous Quarter (Q3 FY26): ₹1,012.69 Cr
  • Previous Year (Q4 FY25): ₹918.25 Cr
• Profit After Tax (PAT):
  • PAT (Q4 FY26): ₹32.24 Cr
    • QoQ Change: +9.03%
    • YoY Change: +23.00%
  • Previous Quarter (Q3 FY26): ₹29.57 Cr
  • Previous Year (Q4 FY25): ₹26.21 Cr
• QoQ Performance:
  • Revenue Trend: Moderate decline
  • Profit Trend: Healthy improvement

Margin Analysis

Drivers:

• Total expenses declined sequentially to ₹924.06 Cr from ₹983.33 Cr.
• Inventory change benefited margins significantly during the quarter.
• Finance costs declined YoY to ₹20.54 Cr from ₹25.16 Cr.
• Cost optimization supported EBITDA expansion.
• Stable raw material management improved operating efficiency.

Insight:

• The company demonstrated stronger profitability conversion despite softer quarterly revenue performance.

Segment insight

Summary:

• Parag Milk Foods continued to benefit from stable dairy demand, efficient cost management, and premium product positioning.

Charcateristics:

• Stable topline growth.
• Improving profitability trend.
• Better inventory management.
• Lower financing pressure.
• Strong operational execution.

Earning quality check

Drivers:

• Positive operating cash flow generation.
• Stable EBITDA support from core operations.
• Reduced finance cost burden.
• Controlled employee and operational expenses.
• Strong profit conversion efficiency.

Interpretations:

• The earnings quality appears healthy as profit growth is supported by operational improvement and positive cash generation.

balance sheet Analysis

• Total Assets: ₹2,280.63 Cr
• Total Liabilities: ₹1,022.07 Cr

Insight:

• The balance sheet strengthened during FY26 with improved equity position and reduction in long-term borrowings.

Key Observations:

• Total equity increased to ₹1,258.56 Cr from ₹1,023.41 Cr.
• Long-term borrowings declined to ₹157.96 Cr from ₹252.37 Cr.
• Inventory increased to ₹730.30 Cr reflecting business expansion.
• Cash & cash equivalents declined to ₹3.28 Cr.

Cash flow analysis

Operating Activities:

• Net operating cash inflow stood at ₹149.48 Cr.
• Strong operational cash generation supported liquidity.
• Inventory build-up impacted working capital during FY26.

Investing Activities:

• Net investing cash outflow stood at ₹98.01 Cr.
• Major investments were directed toward property, plant, equipment, and capacity enhancement.

Financing Activities:

• Net financing cash outflow stood at ₹60.08 Cr.
• The company reduced debt obligations and paid dividends during the year.

Final Cash Position:

• Cash & Cash Equivalents : ₹3.28 Cr
• Previous Year : ₹11.89 Cr

key risks

• Decline in quarterly revenue momentum.
• High inventory levels.
• Weak cash balance position.
• Dairy commodity price volatility.
• Dependence on consumer demand trends

management strategy signals

Focus Area:

• Premium dairy product expansion.
• Brand strengthening.
• Margin optimization.
• Debt reduction.
• Operational efficiency improvement.

Financial metrics table

Quarterly Performance Context