India-based Parag Milk Foods, headquartered in Maharashtra, reported a 9.4% rise in full-year revenue to ₹34.3 billion for FY 2025, beating expectations. However, its earnings per share (EPS) fell short of analyst estimates by 6.8%, despite a 31% increase in net income, driven by strong topline growth. The company, known for its dairy brands like Gowardhan, Pride of Cows, and Topp Up, continues to navigate high input costs that impacted profit margins.
Parag Milk Foods, a leading dairy company in India based in Maharashtra and known for brands like Gowardhan, Pride of Cows, and Topp Up, announced its full-year results for FY 2025. The company posted a 9.4% year-on-year revenue growth, reaching ₹34.3 billion, surpassing analyst expectations by 2.7%. However, earnings per share (EPS) came in at ₹9.97, missing estimates by 6.8%.
Net income rose sharply to ₹1.19 billion, a 31% increase from FY 2024, while profit margins also improved to 3.5% from 2.9%, primarily due to higher revenue. Despite the top-line growth, elevated cost of sales—accounting for 74% of revenue at ₹25.5 billion—continued to weigh on bottom-line performance.
The company’s core business segment remains the processing of milk and manufacturing of milk-based products, which contributed the entirety of FY25’s revenue. While Parag Milk Foods has benefited from a recent 10% rise in its share price over the past week, it faces challenges in optimizing input costs to further improve profitability.
Looking ahead, Parag Milk Foods is expected to grow its revenue at an average annual rate of 8.1% over the next two years, slightly trailing the broader Indian food industry’s projected growth of 9.8%.
Industry analysts have also raised concerns with three flagged risks in the company’s financials—one of which they describe as “uncomfortable”—warranting close monitoring by investors and stakeholders alike.
Parag Milk Foods continues to focus on innovation and premium dairy offerings while working to strike a balance between growth and cost management in a competitive FMCG landscape.
