Milky Mist shares rally 5% after Q2 PAT soars 175%; firm says festive season will create favourable demand ahead

Shares of Milky Mist Dairy Food rallied as much as 5% to their day's high of Rs 320 on the BSE on Friday after the company reported robust figures for the second quarter of FY27.

The company’s net profit jumped 175% to Rs 75 crore from Rs 28.39 crore reported in the corresponding quarter of the previous financial year. The company’s revenue from operations came in at Rs 1,089.40 crore, up 42% year-on-year in the September quarter, supported by higher sales volumes and strong demand for value-added dairy products.

Margins for the quarter under review came in at 15.17% from 13.95% in the year-ago period. Milky Mist said the year-on-year improvement in EBITDA and EBITDA margin was primarily driven by higher volumes, operational efficiencies and a favourable product mix.


The growth in profit after tax (PAT) was mainly attributable to an expansion in EBITDA, repayment of loans and the creation of a deferred tax asset in accordance with the applicable accounting standard.

The company said both revenue and gross profit reached record quarterly highs in the second quarter of FY27. Growth was driven by steady demand across its product portfolio in both value and volume terms, entry into new markets and increased consumption of value-added dairy products. Its protein-focused range emerged as the fastest-growing segment, while yoghurt remained the fastest-growing product category during the quarter.

“Despite prevailing agricultural inflation, the impact of El Nino and geopolitical uncertainties, we have achieved higher revenue growth, improved margins and profitability,” said K Rathnam, whole-time director and chief executive officer.

Rathnam said actions against the unorganised sector had helped the company increase paneer volumes by around 5%. He added that enforcement measures by the regulator would benefit the sector over the long term.

For the first half of FY27, revenue from operations increased 42.5% year-on-year, while EBITDA grew 62.9%. Profit after tax surged 308.4%, the company said.

Milky Mist continued to strengthen its protein-focused portfolio during the quarter, introducing Skyr and Greek yoghurt in four-pack formats. This followed the launch of high-protein paneer cubes in the previous quarter. The company also expanded its range with high-protein lactose-free milk, manufactured using its existing facilities.

Going ahead, the company's focus will remain on broadening its value-added product portfolio, expanding distribution, improving capacity utilisation and stepping up investments in milk procurement and manufacturing to support growth.

It also added that the upcoming festive season is expected to create favorable demand conditions across categories, and Milky Mist is well positioned to build on the momentum across categories.


Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.