Milky Mist Q1 FY27 Results: Profit Jumps 890% as Revenue Rises 44%

Milky Mist Dairy Food reported a sharp improvement in its Q1 FY27 performance, with profit after tax rising 889.81% year-on-year to ₹64.68 crore. Revenue grew 43.6% to ₹973.45 crore, supported by higher volumes, a better product mix, pricing and strong demand for value-added dairy products.

The results indicate that Milky Mist’s growth was not limited to sales. EBITDA, gross profit and operating margins also improved during the June 2026 quarter.

Milky Mist Q1 FY27 results at a glance

Financial metric	Q1 FY27	Q1 FY26	YoY change
Revenue from operations	₹973.45 crore	₹678.09 crore	43.6%
Gross profit	₹333.02 crore	About ₹213.31 crore	56.1%
EBITDA	₹144.89 crore	₹83.02 crore	74.5%
EBITDA margin	14.88%	12.24%	Up 264 bps
Profit after tax	₹64.68 crore	₹6.53 crore	889.81%

Milky Mist’s profit was nearly 9.9 times the level reported in the corresponding quarter. The percentage increase is approximately 890%, while describing it as “nearly ten times” gives a clearer picture of the scale of growth. Milky Mist Q1 FY27 results

What drove Milky Mist’s profit growth?

The jump in profit came from a combination of revenue growth and margin expansion.

Higher sales volumes

Demand increased across Milky Mist’s product portfolio. Growth was broad-based, meaning the company was not dependent on one product category to deliver higher revenue.

Better product mix

Milky Mist focuses on value-added dairy products rather than the low-margin liquid milk market. Products such as paneer, cheese, yogurt, curd and ice cream can offer better pricing power and margins when compared with basic dairy products.

A greater contribution from faster-growing or higher-margin categories helped improve profitability.

Pricing ability

The company attributed part of the gross-profit expansion to its ability to manage pricing. Strong brand recognition and demand for packaged dairy products can help a company pass on some cost increases without severely affecting volumes.

Operating efficiencies

Revenue rose 43.6%, while EBITDA increased 74.5%. This faster growth in operating profit indicates positive operating leverage, where costs do not rise at the same pace as revenue.

The EBITDA margin expanded from 12.24% to 14.88%, an improvement of 2.64 percentage points.

How did Milky Mist’s product categories perform?

Growth was visible across several major categories.

Product category	YoY revenue growth
Paneer	34%
Cheese	38%
Curd	27%
Ice cream	60%
Yogurt	153%

Paneer remained Milky Mist’s largest revenue contributor and delivered 34% growth. This is important because strong growth in the company’s biggest category can have a meaningful impact on total revenue.

Yogurt was the fastest-growing category, with sales rising 153%. Ice cream revenue grew 60%, helped by an extended summer, particularly in southern India.

The strength in yogurt and ice cream also suggests that Milky Mist is expanding beyond its traditional paneer and cheese portfolio.

Why did Milky Mist’s margins improve?

Gross profit increased 56.1% to ₹333.02 crore, while the gross margin improved from 31.46% to 34.21%.

The improvement was supported by:

• Higher production and sales volumes
• A more favourable product mix
• Pricing ability
• Manufacturing efficiencies
• Better utilisation of distribution infrastructure
• Increasing scale in value-added products

EBITDA margin also expanded to 14.88%. The difference between gross-margin and EBITDA-margin growth indicates that Milky Mist was able to absorb operating expenses while still delivering a stronger operating profit.

Investors should monitor whether these margins can be maintained outside the seasonally strong summer quarter.

New cheddar cheese plant adds capacity

During Q1 FY27, Milky Mist commissioned a cheddar cheese plant with an installed capacity of 120 tonnes per day.

The new facility may support future growth by increasing production capacity and allowing the company to capture greater demand from retail, food-service and institutional customers.

However, new capacity also brings execution risks. The company will need to achieve sufficient utilisation to generate an attractive return on the investment.

Understanding Milky Mist’s business model

Milky Mist operates primarily in value-added dairy and packaged food products. Unlike traditional dairy companies that depend heavily on liquid milk, it focuses on categories where branding, processing, packaging and distribution can create higher value.

Its portfolio includes products sold under Milky Mist and other brands such as SmartChef, Capella, Briyas and Asal. As of June 30, 2026, the company offered products across 22 categories.

Milky Mist has an integrated supply chain covering:

• Milk procurement
• Processing
• Manufacturing
• Packaging
• Cold-chain distribution
• Retail delivery

This integrated model can improve quality control and product availability. At the same time, it requires significant investment in procurement, manufacturing, refrigeration and logistics.

What do the results mean for investors?

The Q1 results are encouraging because revenue, EBITDA and profit all grew strongly. Margin expansion also suggests that growth was profitable rather than being driven only by higher sales.

Key positives include:

• Revenue growth of more than 43%
• EBITDA growth of nearly 75%
• A 264-basis-point EBITDA-margin expansion
• Strong demand across multiple categories
• Rapid growth in yogurt and ice cream
• Additional cheese production capacity

However, investors should avoid extrapolating one quarter’s 890% profit growth across the full year. The comparison benefited from a low Q1 FY26 profit base of ₹6.53 crore.

Future earnings will depend on milk procurement costs, product pricing, capacity utilisation, seasonality and distribution expansion.

Key risks to watch

Milk-price volatility

Milk is the company’s main raw material. A sharp increase in procurement prices could affect gross margins if the company cannot pass the higher cost to consumers.

Seasonal demand

Ice cream, curd and some beverage categories benefit from hot weather. Performance can moderate during cooler or unusually rainy periods.

Competitive intensity

Milky Mist competes with national and regional dairy businesses, including established brands with large distribution networks.

Cold-chain costs

Value-added dairy products require temperature-controlled storage and transportation. Fuel, electricity and logistics costs can affect profitability.

Sustainability of margins

Q1 FY27 margin expansion was strong, but investors should track whether the company can maintain similar profitability as it enters new geographies and invests in distribution.

Milky Mist Q1 FY27 results: Overall assessment

Milky Mist delivered a strong first quarter, supported by broad-based demand, operating leverage and improved margins. The quality of growth appears healthier because EBITDA rose faster than revenue.

The 890% profit increase is attention-grabbing, but it was partly amplified by the low base in Q1 FY26. For a more balanced assessment, investors should focus on revenue growth, EBITDA margin, cash generation and the performance of new manufacturing capacity over several quarters.

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