Parag Milk profit jumps 90.48% as operating margin improves
Revenue growth outpaced expense growth in Q2FY27, but the 7.95% margin remained below the FMCG peer median of 10.57%.
Filed 04 Nov 2026, 00:03 IST · Parag Milk Foods Ltd (PARAGMILK)
Key takeaways
- Consolidated net profit rose 90.48% QoQ to Rs 42.00 cr as revenue grew 31.37%.
- Operating margin widened 0.72 percentage points QoQ to 7.95% because expenses grew 30.34%, slower than revenue at 31.37%.
- The 7.95% operating margin remained 2.62 percentage points below the 10.57% median of 46 FMCG peers.
Price around the results
Revenue growth translated into sharper profit growth
Parag Milk Foods reported consolidated revenue growth of 31.37% QoQ, while operating profit increased 44.63%. The wider operating-profit increase reflects the 0.72-percentage-point margin improvement, helping profit before tax rise 88.36% and net profit 90.48% QoQ. Interest expense also rose 21.37%, limiting the conversion of operating gains into pre-tax profit.
Lower cost growth supported the margin
Expenses grew 30.34% QoQ, slower than revenue growth of 31.37%, which lifted operating margin to 7.95%. Depreciation increased only 2.06%, while interest rose 21.37% to add pressure below operating profit. The tax rate fell 0.85 percentage points to 23.87%, providing an additional lift to net profit.
Margin remains below the FMCG peer median
The company’s 7.95% operating margin was 2.62 percentage points below the 10.57% median among 46 FMCG peers that had reported the same quarter. This quarter shows sequential improvement from 7.23%, but the available trend covers only the immediately preceding quarter, so it does not establish a longer multi-quarter direction. Other income contributed 3.43% of pre-tax profit, indicating that reported profit was largely driven by operations rather than non-operating income.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,241 cr | ₹945 cr | +31.37% |
| Other income | ₹2 cr | ₹1 cr | +34.04% |
| Expenses | ₹1,142 cr | ₹876 cr | +30.34% |
| Operating profit | ₹99 cr | ₹68 cr | +44.63% |
| Operating margin (%) | 7.95% | 7.23% | — |
| Interest | ₹27 cr | ₹22 cr | +21.37% |
| Depreciation | ₹19 cr | ₹18 cr | +2.06% |
| Profit before tax | ₹55 cr | ₹29 cr | +88.36% |
| Tax | ₹13 cr | ₹7 cr | +81.91% |
| Net profit | ₹42 cr | ₹22 cr | +90.48% |
| EPS (₹) | ₹3.36 | ₹1.76 | +90.91% |
Operating margin of 7.95% compares with a Fast Moving Consumer Goods sector median of 10.57% across 46 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 7.95% after the 0.72-percentage-point QoQ improvement.
- Whether expense growth stays below revenue growth after the Q2FY27 gap of 30.34% versus 31.37%.
- Whether interest expense remains near the Q2FY27 level after rising 21.37% QoQ.