2 days ago
Milky Mist Profit Soars on Summer Dairy Demand
Milky Mist sells dairy foods such as paneer, yogurt, ice cream, curd, and milkshakes.
In the June quarter, its profit became almost ten times larger than it was a year earlier.
The company also sold much more of its products and earned higher revenue.
Hot summer weather helped increase demand for yogurt and ice cream.
Yogurt sales grew especially quickly, while paneer remained the biggest source of revenue.
The company’s operating profit margin also improved.
Milk prices are rising, which could make production more expensive.
Milky Mist says it can raise prices if needed and does not expect the latest Tamil Nadu milk-price increase to significantly hurt it.
Milky Mist Dairy Food’s Q1FY27 net profit rose 9.9 times year-on-year to ₹64.6 crore.
Revenue increased 43.6% to ₹973.4 crore, while Ebitda rose 74.5% to ₹144.89 crore.
Yogurt sales jumped 153%, ice-cream sales rose 60%, and paneer revenue increased 34%.
The company commissioned a cheddar and cheese plant with daily capacity of 120 tonnes.
Management expects limited impact from higher milk costs but has begun evaluating price increases for Q2.
- Who
- Milky Mist Dairy Food Limited, led by chief executive officer K Rathnam and chief financial officer Biswajit Mishra.
- What
- The company reported a sharp increase in Q1FY27 profit, revenue, operating profit, and summer-category sales.
- Where
- Milky Mist is based in Tamil Nadu and sells across southern India and other parts of the country.
- When
- The results cover the June quarter, Q1FY27; the company listed on 18 August, and a Tamil Nadu procurement-price increase took effect after 31 August.
- Why
- Extended summer demand lifted yogurt, ice-cream, curd, and milkshake sales, while broader product growth and stronger margins supported profitability.
Management and growth case
Cost and margin-risk case
Future profitability
Management and growth case
Milky Mist said broad-based sales, strong summer demand, available capacity, and its pricing ability supported the quarter and should help it manage future price changes.
Cost and margin-risk case
Rising milk and fodder costs could pressure margins if the company cannot pass higher costs on to consumers.
Impact of milk-price increases
Management and growth case
Management said Milky Mist already procures milk at around Tamil Nadu’s new price and therefore does not expect the ₹3-per-litre procurement increase to materially affect the company.
Cost and margin-risk case
Milk prices have been rising, including a reported ₹9-per-litre increase in Mumbai and surrounding areas, creating a broader input-cost concern.
Valuation outlook
Management and growth case
Anand Rathi analysts said the company’s revenue growth, leadership in value-added dairy categories, and premium positioning may support a valuation premium.
Cost and margin-risk case
The company’s newly listed status and the need for future price increases make the sustainability of its unusually rapid profit growth an issue for investors to assess.
Key facts
- Q1FY27 net profit
- ₹64.6 crore, up 9.9 times from ₹6.5 crore a year earlier
- Revenue from operations
- ₹973.4 crore, up 43.6% year-on-year
- Ebitda
- ₹144.89 crore, up 74.5% year-on-year
- Ebitda margin
- 14.88%, compared with 12.24% a year earlier
- Product growth
- Yogurt revenue rose 153%, ice-cream sales 60%, and paneer revenue 34%
- New plant
- Cheddar and cheese facility commissioned with capacity of 120 tonnes per day
- Stock-market debut
- Listed on 18 August at ₹165, an 18% premium to the ₹140 issue price
Quotes
Biswajit Mishra
Chief financial officer of Milky Mist Dairy Food
“Healthy sales performance across the entire product portfolios, on a broad-based growth, and, the summer portfolio, comprising of ice creams, yoghurts, curd, and, milkshakes, a record strong year on year growth due to extended summer season, particularly across south as well as in other parts of the country,”
livemint.com
“Going forward, shifting of price to consumer would not be a challenge for us because this, we have been doing from the earlier times and it will be comfortable to us,”
livemint.com
Sources
Related news
Milky Mist IPO Subscribed 79% Amid Brokerage Subscribe Calls
Milky Mist shares list at 18% premium on debut
Milky Mist IPO subscribed 54x; brokerages recommend long-term value
India’s Dairy Firms Pursue Higher Returns Through Value-Added Products
Milky Mist Dairy Launches Rs 1,553-Crore IPO August 11
Stocks in News: IPO Debuts, Deals, Results and Buyback
FSSAI Crackdown Could Expand India’s Organised Paneer Market
Indian Markets Consolidate as IPO Activity Dominates Trading Week
