Parag Milk Foods Ltd. (PARAGMILK) AI Stock Analysis

• Market Cap: ₹24.18B
• Dividend Yield: 0.33%
• Average Volume (3M): 144.83K
• Price to Earnings (P/E): 30.6
• Beta (1Y): 1.00
• Revenue Growth: 13.73%
• EPS Growth: 32.07%
• Country: IN
• Employees: 1,772
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 2.37
• Shares Outstanding: 125,109,550
• 10 Day Avg. Volume: 71,491
• 30 Day Avg. Volume: 144,829
• PEG Ratio: 0.61
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 24.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 13.79
• Revenue Forecast (FY): ₹39.43B

• Rating: 61 Neutral
• Price Target: ₹204.00 ▼(-30.82% Downside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by improving financial performance (revenue growth, margin expansion, and better cash generation). This is offset by weak technical momentum with the price below major moving averages and negative MACD. Valuation is acceptable but not compelling given the low dividend yield.

Positive Factors

Revenue Growth

Parag Milk has delivered sustained top-line expansion into 2025, reflecting stronger product adoption and distribution reach. Durable revenue growth supports scale benefits, enables continued investment in brands and capacity, and underpins margin and cash‑flow improvements over the medium term.

Margin Recovery

Gross and net margin improvement to 25.8% and 3.5% reflects better product mix toward value‑added dairy and improved operating efficiency. Sustained margin recovery suggests structural shifts in mix and operations that can persist if the company maintains premium product penetration and cost discipline.

Cash Generation

A sharp swing to positive free cash flow and improved operating cash conversion provide durable financial flexibility. Stronger cash generation supports reinvestment, working capital needs, and gradual deleveraging, reducing funding risk and enabling strategic investments in brands and distribution over the next few quarters.

Negative Factors

Margin Competitiveness

Despite margin improvement, reported profitability remains modest versus peers, indicating limited structural pricing power or higher cost intensity. Persistently lower margins constrain ability to reinvest, reduce leverage quickly, or absorb raw‑material cost shocks over a multi‑quarter horizon.

Leverage

Balance sheet shows a reasonable but still material level of debt; management highlights continued need to reduce leverage. Ongoing indebtedness limits strategic optionality, raises interest expense sensitivity, and makes the firm more vulnerable to funding stress if cash generation falters.

Input Price Exposure

Business economics depend on the spread between raw milk input costs and finished‑goods pricing. Structural volatility in milk supply/prices or adverse shifts in product mix can compress margins and working capital requirements, posing a persistent operational risk over the coming months.

Parag Milk Foods Ltd. Business Overview & Revenue Model

Company Description

Parag Milk Foods Limited processes, manufactures, and sells milk and milk related products in India. It offers ghee, milk, paneer, curd, butter, dairy whitener, and gulab jamun mix products under the Gowardhan brand; and flavored cheese wedges, spreads, slices, and angles, as well as flavored yoghurt, slim milk, cream, whey, and other products under the Go brand. The company also provides whole milk under the Pride of Cows brand name; flavored milk under the Topp up brand; and sports and nutrition products under the Avvatar brand name, as well as offers lactose products. It also exports its products to the United Arab Emirates, Singapore, Mauritius, Oman, Kuwait, Saudi Arabia, Congo, Hong Kong, the Philippines, Sri Lanka, Bangladesh, Maldives, the United States, Thailand, Nepal, Bhutan, Ghana, Malaysia, Qatar, etc. Parag Milk Foods Limited was founded in 1992 and is headquartered in Mumbai, India.

How the Company Makes Money

Parag Milk Foods makes money primarily by selling dairy and dairy-derived consumer products, earning revenue when it converts procured raw milk into higher-value branded and value-added products and sells them through distribution channels. Key revenue streams include (1) branded retail sales of value-added dairy products such as ghee, butter, cheese and related dairy offerings sold via general trade, modern trade, and other retail outlets; (2) liquid milk and other fresh dairy sales where applicable, typically with higher volume but generally lower per-unit margins than value-added products; and (3) B2B/institutional sales to customers such as foodservice, horeca, and food manufacturers that buy dairy ingredients or bulk packs (specific counterparties: null). The company’s earnings are influenced by the spread between input milk prices and realized prices for finished goods, product mix (greater share of value-added products typically supports margins), brand-led pricing, distribution reach, and operational efficiency in processing and supply chain. Significant partnerships or named counterparties contributing to earnings: null.

Parag Milk Foods Ltd. Financial Statement Overview

Summary

Financials show a clear turnaround: strong revenue growth into 2025, improving gross margin (25.8%) and a return to profitability (net margin 3.5%). Cash flow improved with positive and sharply higher free cash flow, while the balance sheet is stable with improving ROE (11.6%) but still benefits from further leverage reduction.

Income Statement

Parag Milk Foods Ltd. has shown strong revenue growth with a significant increase from 2022 to 2025. The Gross Profit Margin has improved over the years, reaching 25.8% in 2025. The Net Profit Margin also increased to 3.5% in 2025, showing profitability after previous years of losses. The EBIT and EBITDA margins have seen positive trends, indicating better operational efficiency. However, there's room for improvement in profit margins compared to industry leaders.

Balance Sheet

The company's Debt-to-Equity Ratio is at a reasonable level, showing a balanced approach to leveraging debt. The Return on Equity (ROE) has improved, reaching 11.6% in 2025, indicating efficient utilization of shareholders' funds. The Equity Ratio stands at 50.4% in 2025, reflecting a solid equity base. Despite improvements, the company should continue to focus on reducing debt to enhance financial stability.

Cash Flow

Free Cash Flow has turned positive with a significant growth rate of 132.4% from 2024 to 2025, indicating better cash management. The Operating Cash Flow to Net Income Ratio is strong, reflecting good cash conversion from earnings. However, the company should continue to strengthen its cash flow generation to support future growth and investment needs.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Jun 2022	Mar 2021
Income Statement
Total Revenue	35.26B	34.32B	31.39B	28.54B	20.55B	18.26B
Gross Profit	8.99B	8.85B	7.34B	5.42B	-2.43B	4.27B
EBITDA	2.83B	2.53B	2.23B	1.65B	-4.17B	1.38B
Net Income	1.19B	1.19B	905.83M	532.54M	-5.32B	207.05M
Balance Sheet
Total Assets	0.00	20.33B	18.91B	16.68B	13.95B	16.83B
Cash, Cash Equivalents and Short-Term Investments	250.50M	250.50M	275.74M	152.97M	840.05M	186.51M
Total Debt	0.00	6.54B	6.45B	6.06B	5.34B	3.92B
Total Liabilities	-10.23B	10.09B	9.79B	8.60B	8.41B	7.54B
Stockholders Equity	10.23B	10.23B	9.12B	8.08B	5.54B	9.28B
Cash Flow
Free Cash Flow	0.00	881.90M	379.28M	-2.55B	-1.85B	555.97M
Operating Cash Flow	0.00	2.12B	991.13M	-1.94B	-1.49B	999.52M
Investing Cash Flow	0.00	-1.32B	-529.30M	-875.59M	-196.81M	-468.31M
Financing Cash Flow	0.00	-783.50M	-494.23M	2.12B	2.41B	-685.54M

Parag Milk Foods Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 294.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PARAGMILK, the sentiment is Negative. The current price of 294.9 is above the 20-day moving average (MA) of 199.15, above the 50-day MA of 231.96, and above the 200-day MA of 260.42, indicating a bearish trend. The MACD of -9.46 indicates Negative momentum. The RSI at 37.52 is Neutral, neither overbought nor oversold. The STOCH value of 38.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PARAGMILK.

Parag Milk Foods Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRMOVER	72 Outperform	₹28.16B	38.77	―	―	-8.29%	4.70%
ADFFOODS	64 Neutral	₹19.50B	24.99	―	0.57%	6.31%	-3.89%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PARAGMILK	61 Neutral	₹24.18B	30.64	―	0.33%	13.73%	32.07%
TASTYBITE	60 Neutral	₹17.52B	28.74	―	0.02%	17.13%	104.51%
DIAMONDYD	54 Neutral	₹21.86B	217.85	―	0.04%	1.76%	-214.88%

Parag Milk Foods Ltd. Corporate Events

Parag Milk Foods Confirms No Deviation in Use of Warrant Proceeds

Parag Milk Foods Limited has reported that there was no deviation or variation in the use of funds raised through the issuance of Convertible Share Warrants amounting to INR 40.30 crore on May 23, 2025. For the quarter ended December 31, 2025, the company confirmed that the proceeds were utilised strictly in line with the stated objectives approved by shareholders, with the statement reviewed by its Audit Committee and Board and monitored by India Ratings & Research Private Limited, underscoring its adherence to regulatory requirements and disciplined capital deployment for investors and regulators.

Parag Milk Foods Posts Q3 FY26 Earnings Call Audio on Website

Parag Milk Foods Ltd. has notified stock exchanges that the audio recording of its earnings conference call discussing financial and operational performance for the quarter and nine months ended 31 December 2025 has been made available on the company’s website. By publishing this recording for investors and analysts, the company reinforces its disclosure practices and transparency standards under SEBI’s listing regulations, facilitating better access to information for shareholders and market participants.

Parag Milk Foods to Engage Investors at Systematix Conference in Mumbai

Parag Milk Foods Limited has announced that it will participate in the Systematix Conference on February 10, 2026, in Mumbai, where company representatives will hold one-on-one and group meetings with analysts and investors in a physical format. The company emphasized that no unpublished price-sensitive information will be shared during these interactions, underscoring its adherence to regulatory requirements and signaling ongoing engagement with the investment community to maintain transparency and investor confidence.

Parag Milk Foods Files Monitoring Report on Preferential Issue Fund Utilisation

Parag Milk Foods Ltd. has submitted a monitoring agency report for the quarter ended December 31, 2025, detailing the utilisation of funds raised through a preferential issue of convertible share warrants completed on May 23, 2025. The report, prepared by India Ratings & Research Private Limited in accordance with SEBI regulations, confirms ongoing regulatory oversight of how the capital raised is being deployed and has been simultaneously filed with stock exchanges and made available on the company’s website, underscoring the company’s compliance and transparency towards investors and regulators.

Parag Milk Foods Posts Record Quarterly Revenue, New Age Brands Power Growth

Parag Milk Foods reported its highest-ever quarterly revenue in the quarter ended 31 December 2025, with consolidated revenue rising 14% year-on-year to Rs 1,013 crore on the back of 8% volume growth, led by 12% volume and 21% value growth in core categories such as ghee, cheese and paneer and strong traction in its new age businesses. Despite robust top-line momentum, profitability was mixed: quarterly EBITDA declined 3% and EBITDA margin contracted to 7.6%, while PAT fell 18% to Rs 30 crore, though on a nine-month basis revenue grew 14%, PAT rose 11% and PAT before exceptional items increased 17%, underlining improving scale and contribution from higher-margin new age brands like Pride of Cows and Avvatar, which posted 123% growth and crossed Rs 100 crore in quarterly revenue, expanding their share of the overall portfolio and reinforcing the company’s push into value-added dairy and nutrition segments.

Parag Milk Foods Releases Investor Presentation on Q3 and Nine-Month FY2025 Results

Parag Milk Foods Limited has released an investor presentation detailing its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. The presentation, prepared in line with SEBI disclosure regulations, will be used for a post-earnings conference call with analysts and investors on February 5, 2026 and has been made available on the company’s website, underscoring its ongoing efforts to maintain transparent communication and regular financial updates to market participants.

Parag Milk Foods Releases Investor Presentation on Q3 and Nine-Month FY2025 Results

Parag Milk Foods Ltd. has released an investor presentation detailing its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. The presentation, which will be used for a post-earnings conference call with analysts and investors on February 5, 2026, has been filed with the stock exchanges and made available on the company’s website, underscoring its ongoing regulatory compliance and efforts to maintain transparent communication with market participants.

Parag Milk Foods Board Addresses Exchange Fines Over Minor Compliance Delay

Parag Milk Foods Limited has disclosed that it received notices on December 16, 2025 from the National Stock Exchange of India and BSE Limited imposing a fine for a marginal delay in complying with Regulation 23(9) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The matter was placed before the company’s board at its meeting on February 4, 2026, where the board acknowledged the issue and characterized the delay as inadvertent, signaling that the non-compliance was procedural rather than indicative of deeper governance or operational concerns.

Parag Milk Foods to Close Trading Window Ahead of December Quarter Results

Parag Milk Foods Ltd. has announced that its trading window for dealing in the company’s securities will be closed for designated persons and their immediate relatives from 1 January 2026 until 48 hours after the declaration of its unaudited financial results for the quarter and nine months ended 31 December 2025. The move, undertaken in line with SEBI’s Prohibition of Insider Trading regulations and the company’s internal insider trading policy, aims to prevent trading on unpublished price-sensitive information and underscores the dairy company’s adherence to regulatory compliance and governance standards ahead of its upcoming financial disclosures.