Shares of Milky Mist Dairy Food soared 9% on Tuesday, after the recently-listed dairy products company reported a profit surge for the quarter ending June. Investors welcomed the company’s first quarterly earnings since its stock was launched in the market and the company’s excellent performance, higher operating profit and improved margins helped lift the market mood. The stock rose to a high of around ₹231, up significantly from its previous close at around ₹210.94.
Milky Mist Dairy Food had a consolidated profit of ₹64.68 crore after tax in the April-June quarter of FY27 compared to ₹6.53 crore in the same quarter last year. This is almost nine times higher than the previous year. The company’s strong profitability followed revenue growth and solid performance in value-added dairy and packaged food business highlighted the growing business growth.
Revenue from operations increased 43.6% year-on-year to ₹973.45 crore in Q1 FY27, from ₹678.09 crore in Q1. The company grew sales volumes and product mix and improved manufacturing efficiency helped. The revenue growth was particularly significant for a newly listed company as a new product marketer that had made its debut, and investors were looking for evidence of Milky Mist’s growth trajectory when it went public.
Operating profitability also improved significantly in the quarter as well. The EBITDA grew 74.5% year-on-year to ₹144.89 crore from ₹83.02 crore and EBITDA margin rose to 14.88% from 12.24% a year ago. The operating profit margin increased to 14.77% from 11.98% as well. The growth in the margin shows that the company's revenue growth was accompanied by better operational performance as opposed to just by higher sales volume.
Milky Mist attributed its strong quarterly performance to broad-based growth across its portfolio and an extended hot-weather period that benefited summer-focused categories. Ice cream, curd and yoghurt, especially in southern India, were strong. And during the quarter, seasonal demand helped the company gain from a higher consumption of chilled and dairy-based products.
Paneer remained one of the major revenue contributors to the company in individual categories, with revenue increasing 34% from the previous year. Cheese revenue increased 38%, and curd grew 27%. Ice-cream sales were up 60% and yoghurt was one of the fastest-growing categories, up 153%. This broad-based performance shows that the company is growing in India’s value-added dairy sector.
Milky Mist has recently entered the stock market. After a ₹1,553-crore IPO on August 18, it listed its shares on NSE and BSE at a price of ₹165 compared to ₹140 for the IPO price, which is the highest value. Tuesday’s rise has also helped the stock to gain in the stock market (and will be the first time it will be a lot higher than its IPO price, but share prices in the stock market change after a recent listing) and it’s up about 18%. The company is now trading at ₹165 against ₹140.
Milky Mist’s IPO was very much the product of investor interest and brought institutional interest in. The company operates in the value-added dairy market with products like paneer, cheese, yoghurt, curd, ice cream, and other packaged dairy products. Value-added products have become more and more important as consumers look for packaged, convenient and differentiated food products.
The company’s recent financial performance also provides context for its long-term growth story. Milky Mist’s revenue grew at a 31.26% compound annual growth rate from FY24 to FY26 and reached ₹3,138.36 crore in FY26. The company has been expanding manufacturing and distribution capabilities as it attempts to penetrate the Indian dairy market.
At the same time, increasing revenue does not eliminate the challenges of the business. In the June quarter, the company’s total expenses also expanded and material costs remained a significant part of spending. The cost of materials consumed in terms of volume rose by 34.4% year-on-year to ₹654.14 crore in the company as per the results. Milk, packaging, logistics and other input costs will continue to be important for future profitability.
The latest quarterly numbers are a useful indication of Milky Mist’s performance as a company for investors. The revenue growth and substantial profit growth set a very positive first earnings story but future quarters will be key in determining if the company can maintain the rate of growth seen in Q1 FY27.
The company has said the focus for FY27 will be profitable growth of the business through portfolio expansion and operating discipline and investment in manufacturing and distribution capabilities. Further product innovation and distribution network expansion will help Milky Mist attract more consumers and position it to become more competitive in India’s highly competitive packaged dairy market.
Milky Mist’s share-price bounce today is a reflection of investors’ optimism after a strong first quarter result. Operating profit increased to ₹64.68 crore and revenue more than ₹1,000 crore and operating profit margins also rose to 14.88% and the company has also started out very brightly as a publicly traded company. Now focus is on whether strong demand for value-added dairy products can continue to drive revenue and profits through the remaining fiscal year of FY27.
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