Shares of Parag Milk Foods surged 3% to ₹272.95 on the NSE after the company disclosed its long‑term targets, signaling investor confidence in the expanded capacity plan.
The dairy giant set a ₹10,000‑crore revenue goal for FY29‑30, a leap from the 11% YoY revenue growth reported in the first quarter, and is targeting an early‑teens EBITDA margin of 13‑14%. Analysts had expected a modest 8‑10% revenue rise, so the guidance beats consensus by a wide margin.
To reach the target, Parag plans to quadruple its paneer output from 20 to 80 metric tonnes and double its cheese and whey protein production, aligning with a domestic paneer market that currently stands at ₹1 lakh crore and is expanding at 12% annually. The move is aimed at capturing a higher share of the organised segment, which currently commands only 6‑7% of the market.
Margins are set to improve as the company leverages price hikes amid a 13% rise in milk costs; the first‑quarter EBITDA margin was 7.5%, and management expects it to climb beyond that figure as operating efficiencies improve. EBITDA of 13‑14% would lift the company into the early‑teens margin bracket, well above the sector average of 8‑9%.
The new‑age business, comprising Pride of Cows and Avvatar, grew 91% YoY and now contributes 13% of revenue, up from 3% five years ago. Management projects this segment to account for 20‑25% of total revenue by 2029‑30, delivering nearly double the company’s average margin and signalling a shift towards higher‑value protein and ready‑to‑drink products.
Working‑capital efficiency is on the rise, with inventory days falling from 74 to 68 sequentially, and the company expects cheese inventory to settle around 60‑70 days. This tighter inventory cycle, coupled with a focus on high‑margin products outside the low‑margin hotel and canteen channel, positions Parag to sustain the announced revenue and margin trajectory.