Parag Milk Foods reported consolidated revenue of Rs 1,240.89 crore for Q2 FY27, up from Rs 1,007.95 crore last year. Profit After Tax stood at Rs 42 crore. The board also approved the merger of its wholly-owned subsidiary, Bhagyalaxmi Dairy Farms, to simplify corporate structure.
Parag Milk Foods Reports Q2 Results and Subsidiary Merger
Revenue grew to Rs 1,240.89 crore in Q2, while Profit After Tax softened to Rs 42.00 crore.
Reader Takeaway: Revenue growth signals strong demand, but investors must monitor margin pressure amid rising costs and regulatory merger approvals.
What just happened
Parag Milk Foods released its financial results for the quarter and half-year ended September 30, 2026, alongside a corporate restructuring announcement. On a consolidated basis, revenue from operations rose to Rs 1,240.89 crore from Rs 1,007.95 crore in the same quarter last year. However, Profit After Tax (PAT) dipped to Rs 42.00 crore compared to Rs 45.65 crore in the previous year. Auditor Sharp & Tannan issued an unmodified review conclusion on these results.
Amalgamation of Subsidiary
The Board of Directors approved the merger of its wholly-owned subsidiary, Bhagyalaxmi Dairy Farms Private Limited, into the parent company. The company stated this move is designed to simplify the group structure, achieve operational synergies, and optimize management efficiency. Since the subsidiary is wholly owned, no new shares will be issued, and there will be no change to the parent entity's shareholding pattern. The scheme remains subject to NCLT, shareholder, and creditor approvals.
Risks to watch
While revenue shows steady growth, the year-over-year decline in PAT suggests ongoing pressure on margins. Investors should monitor how the company manages input costs in the coming quarters. Furthermore, the amalgamation process is contingent upon various statutory and regulatory approvals, which could impact the timeline for realizing projected operational synergies.
Context metrics
For the half-year ended September 30, 2026, consolidated revenue reached Rs 2,185.46 crore, compared to Rs 1,859.47 crore in the same period last year. Consolidated PAT for the half-year stood at Rs 64.05 crore, down from Rs 73.23 crore in the prior-year period. Standalone PAT for the half-year was Rs 74.69 crore against Rs 88.05 crore previously.