Parag Milk Foods Doubles Down on Growth: Cheese Capacity Expansion, New CFO Appointment and Q1 FY27 Results
Parag Milk Foods Limited (NSE: PARAGMILK) has announced a series of strategic developments that reinforce its long-term growth ambitions. Along with reporting healthy revenue growth for the first quarter of FY27, the dairy FMCG company has approved a major expansion of its cheese manufacturing capacity and appointed a new Chief Financial Officer to strengthen its leadership team.
The announcements highlight the company’s focus on expanding its value-added dairy business, improving operational capabilities, and capitalizing on India’s fast-growing premium nutrition market.
Board Approves ₹105 Crore Cheese Capacity Expansion
In one of the biggest announcements, the Board has approved a brownfield expansion of its cheese manufacturing facility.
The project will increase the company’s cheese production capacity from 60 metric tonnes per day (MT/day) to approximately 120 MT/day, effectively doubling its manufacturing capability.
The expansion will require an investment of around ₹105 crore, which will be financed through a combination of internal accruals and debt. The project is expected to be completed by FY28.
Why the Expansion Matters
Cheese has emerged as one of the fastest-growing categories within India’s dairy industry. Rising urbanisation, changing food habits, increasing demand from quick-service restaurants (QSRs), and growing consumption of western food products continue to drive the market.
According to industry estimates, India’s cheese market is projected to expand from around ₹12,900 crore in 2025 to nearly ₹62,000 crore by 2034, creating significant long-term opportunities for organized dairy companies.
Parag Milk Foods is well positioned to benefit from this trend through its flagship Go Cheese brand, which commands an estimated 35% market share in the organized cheese segment.
Its portfolio includes:
- Mozzarella
- Cheddar
- Processed Cheese
- Cheese Slices
- Cheese Cubes
- Cheese Spread
- Pizza Cheese
- Cream Cheese
- Cheese Sauces
- Specialty Cheese Solutions
Apart from retail consumers, the company also supplies hotels, restaurants, cafés and institutional customers across India.
Commenting on the expansion, Rahul Kumar Srivastava, Chief Operating Officer, said the additional capacity will improve manufacturing efficiency, support product innovation, and help the company meet rising customer demand over the coming years.
Rakesh Kothari Elevated as Chief Financial Officer
Parag Milk Foods has also strengthened its leadership team by appointing Rakesh Kothari as Chief Financial Officer (CFO) and Key Managerial Personnel, effective August 7, 2026.
Kothari has served as the company’s President – Finance & Accounts over the past year and brings more than 25 years of experience in banking, treasury, investor relations, financial planning, corporate finance and risk management.
Before joining Parag Milk Foods, he worked with organizations including Citibank and Sadhana Nitro Chem.
Executive Director Akshali Shah said his appointment reflects the company’s commitment to strengthening financial governance and supporting its next phase of growth.
Q1 FY27: Revenue Crosses ₹945 Crore
Despite inflation in milk procurement prices and higher input costs, Parag Milk Foods reported another quarter of revenue growth.
Consolidated Financial Highlights
| Particulars | Q1 FY27 | YoY Growth |
|---|---|---|
| Revenue | ₹945 Crore | 11% |
| Gross Profit | ₹258 Crore | 11% |
| EBITDA | ₹70 Crore | 6% |
| EBITDA Margin | 7.4% | 7.7% last year |
| Profit Before Tax | ₹29 Crore | Flat |
| Profit After Tax | ₹22 Crore | Down 20% |
The company reported 3% volume growth and 11% value growth, demonstrating resilient demand despite cost pressures.
Management attributed the decline in net profit primarily to the impact of higher current tax expenses rather than deterioration in core business performance.
Flagship Brands Continue to Drive Business
Parag Milk Foods’ traditional dairy portfolio remains the backbone of its business.
Its flagship products—including Gowardhan Ghee, Go Cheese, Paneer, and Dahi—contributed 61% of total revenue during the quarter.
Although volumes in these categories declined slightly due to temporary channel disruptions, the company still achieved 10% value growth, supported by pricing actions and a favourable product mix.
New Age Business Delivers Outstanding Growth
One of the biggest highlights was the continued momentum in the company’s New Age Business, comprising Pride of Cows and Avvatar.
Revenue from this segment increased 59% year-on-year to ₹118 crore, raising its contribution to overall sales from 9% to 13%.
Pride of Cows
The premium dairy brand continued expanding its direct-to-consumer network while strengthening its premium positioning through digital campaigns and consumer engagement initiatives.
Avvatar Sports Nutrition
Avvatar maintained its leadership in India’s homegrown whey protein market through:
- New product launches
- Digital-first marketing
- Wider consumer reach
- Strong innovation pipeline
The newly launched Protein Wafer Bar and Ready-to-Drink Protein Cold Coffee together contributed around 7% of Avvatar’s quarterly revenue, indicating encouraging consumer acceptance.
Managing Milk Price Inflation
The biggest challenge during the quarter remained higher milk procurement costs.
Average milk prices increased around 13% year-on-year, putting pressure on margins.
However, Parag Milk Foods successfully protected profitability through:
- Selective price increases
- Better product mix
- Focus on premium products
- Operational efficiencies
As a result, gross margin remained largely stable at 27.3%, compared with 27.4% in the corresponding quarter last year.
Brand Investments Continue
The company continued investing aggressively in brand building.
During the quarter:
- Gowardhan and Go expanded visibility through television partnerships, retail activations and digital campaigns.
- Pride of Cows focused on influencer collaborations and premium customer experiences.
- Avvatar partnered with the popular digital show India’s Got Latent to improve brand awareness among younger consumers.
These initiatives are expected to strengthen consumer engagement and support future growth.
Management Outlook
Executive Director Akshali Shah said the company expects milk availability to improve following a favourable monsoon, while the upcoming festive season should provide an additional demand boost.
Management remains focused on:
- Expanding premium dairy categories
- Growing nutrition-led brands
- Improving operational efficiencies
- Strengthening governance
- Delivering sustainable profitability
The appointment of the new CFO and investment in cheese manufacturing capacity are expected to support these long-term objectives.
About Parag Milk Foods
Established in 1992, Parag Milk Foods is one of India’s leading dairy FMCG companies with manufacturing facilities in Maharashtra and Andhra Pradesh.
Its brand portfolio includes:
- Gowardhan
- Go
- Pride of Cows
- Avvatar
The company operates an integrated dairy business with its own dairy farm, advanced manufacturing facilities, and a strong focus on value-added dairy products and sports nutrition.