Parag Milk Foods has reported a record revenue of INR 1008 crore for the second quarter of FY26, marking a 16% increase year-over-year (YoY). This impressive growth was driven by a 10% rise in volume, particularly in core categories such as ghee, cheese, and paneer, which saw a 23% value growth and a 14% volume growth. The company’s EBITDA margin remained stable at 8.9%, slightly up from 8.8% in the previous year, while gross margins improved to INR 260 crore, reflecting a gross margin increase from 23.6% to 25.8%. This strong performance underscores Parag Milk Foods' position as a leader in the value-added dairy FMCG segment.

The core categories contributed significantly to the company’s success, accounting for 59% of total revenue during the quarter. Parag Milk Foods continues to dominate the market with a 22% share in branded cow ghee, ranking first, and holding the second position in cheese with a 35% market share. The company's new-age businesses, including brands like Pride of Cows and Avvatar, have also shown remarkable growth, representing 9% of overall business compared to 6% last year. Revenue from these segments surged by 79% YoY, highlighting the effectiveness of Parag's premiumization strategy and brand strength.

In addition to its impressive revenue performance, Parag Milk Foods has optimized its capital structure, generating INR 99 crore in cash flow from operations during the first half of FY26. Notably, the company successfully converted Foreign Currency Convertible Bonds (FCCB) into equity, which led to a reduction in net debt by INR 125 crore during the same period. The consolidated Net Debt to EBITDA ratio improved to 1.4 times, while the Net Debt to Equity ratio decreased to 0.4 times. Overall, these developments not only reflect the company’s financial health but also set a solid foundation for future growth as it continues to engage with consumers through various marketing platforms, including a fourth consecutive year of association with KBC and appearances in popular TV shows.