Milky Mist Q1 profit surges nearly 10-fold as summer demand lifts yogurt, ice cream sales

Newly listed Milky Mist Dairy Food Ltd saw its June quarter (Q1FY27) profit jump nearly tenfold, helped by a sharp summer-led surge in yogurt and ice-cream sales and stronger operating margins.

The Tamil Nadu-based value-added dairy company reported a net profit of ₹64.6 crore in Q1FY27, up 9.9 times from ₹6.5 crore a year earlier. Revenue from operations rose 43.6% to ₹973.4 crore from ₹678.1 crore.

The growth was broad-based, but summer categories provided a major lift.

“Healthy sales performance across the entire product portfolios, on a broad-based growth, and, the summer portfolio, comprising of ice creams, yoghurts, curd, and, milkshakes, a record strong year on year growth due to extended summer season, particularly across south as well as in other parts of the country,” said chief executive officer K Rathnam in a press briefing after the results.

Margins expand

The stronger sales translated into faster profit growth. Earnings before interest, taxes, depreciation and amortization (Ebitda) rose 74.5% year-on-year to ₹144.89 crore, while the Ebitda margin expanded to 14.88% from 12.24% a year earlier.

Management attributed the performance to the infrastructure it has built, the market it has created, the capacity available to serve that market and the pricing ability it has developed.

Cottage cheese (paneer) remained the company’s largest revenue contributor, with sales rising 34% year-on-year. Yogurt revenue jumped 153%, while ice-cream sales increased 60% during the quarter.

The company also commissioned a new cheddar and cheese plant in Q1FY27 with capacity of 120 tonnes a day.

Pricing could become the next test for margins as milk costs rise. Milky Mist did not take any price increases in Q1FY27, although it had raised prices by 10.6% in Q4FY26.

“We are evaluating and we have taken some price increase in Q2 ,” said Biswajit Mishra, chief financial officer at Milky Mist, in the press briefing. “Going forward, shifting of price to consumer would not be a challenge for us because this, we have been doing from the earlier times and it will be comfortable to us,” he said.

Milk costs loom

Milk prices have been rising in recent months amid higher fodder costs. Wholesale milk prices in Mumbai and surrounding areas are set to increase by ₹9 per litre, from ₹93 to ₹102, effective 1 September.

Tamil Nadu chief minister C. Joseph Vijay announced a ₹3-per-litre increase in the state’s milk procurement price on 31 August, taking it to ₹44 per litre.

Milky Mist sources 80-85% of its milk from Tamil Nadu. Management said it already procures milk at around the new price and therefore does not expect the increase to materially affect the company.

“Given its (Milky Mist) strong revenue growth, leadership in key value-added dairy categories and premium positioning, the company may command a valuation premium” analysts at Anand Rathi Research Team said in a 10 August report.

Milky Mist Dairy Food made its stock-market debut on 18 August. The stock had listed at ₹165, an 18% premium to its issue price of ₹140.

Today, shares closed at ₹210.50 on the National Stock Exchange, down 1.78%, while the benchmark Nifty 50 fell 0.39%.