Q3 2026 Parag Milk Foods Ltd Earnings Call Transcript
Key Points
- Parag Milk Food Ltd (BOM:539889) achieved its highest ever quarterly revenue, exceeding INR 1,000 crores for the second consecutive quarter, marking a 14% year-on-year increase.
- The company's core categories, including ghee, cheese, and paneer, recorded a 12% volume growth and contributed to 64% of total revenue.
- The new age business, comprising Pride of Cows and Avvatar, showed robust growth, with a 123% year-on-year increase, crossing the INR 100 crore mark in quarterly revenues.
- The company has successfully maintained its gross margin at 25.9% despite a 20% year-on-year increase in milk prices, showcasing effective cost management.
- Parag Milk Food Ltd (BOM:539889) has improved its net working capital days to 62, indicating better efficiency in managing its cash conversion cycle.
- EBITDA for Q3 FY '26 decreased to 7.6% from 9% last year, impacted by gross margin pressures and a one-time other income in the previous quarter.
- Profit after tax before exceptional items declined by 2% year-on-year, reflecting challenges in maintaining profitability amidst rising costs.
- The company faces ongoing inflationary pressures, with milk prices expected to remain elevated in the near term, potentially impacting future margins.
- Employee costs increased by 25% year-on-year, attributed to appraisal cycles and additional hiring, which could pressure operating expenses.
- Concerns were raised about distribution inefficiencies, particularly in regions like Calcutta and Bombay, which could hinder market penetration and sales growth.
Ladies and gentlemen, good day, and welcome to the Parag Milk Foods Limited Q3 FY '26 Earnings Conference Call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Brian D'Penha, Head of Investor Relations. Thank you, and over to you, sir.
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Good day, everyone, and a warm welcome to the Q3 FY '26 Earnings Call of Parag Milk Foods Limited. We are glad to have you all join this meeting virtually. For the meeting today, we have with us our Executive Director, Ms. Akshali Shah; our Chief Operating Officer, Mr. Rahul Kumar Srivastava; our Chief Strategy Officer, Mr.
Ankit Jain; and myself, Head of Investor Relations, Brian D'Penha. After the presentation concludes, we will commence with the Q&A session. While asking a question, I would request you to announce your name and organization. For the purpose of completeness, I do want to read out our safe harbor statement. Certain statements in this meeting with regard
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