30-Oct-2026 16:58:45
MILKY MIST DAIRY FOOD Q2 FY27 CONCALL: EXPECTS 40% REVENUE GROWTH MOMENTUM & 15% EBITDA MARGINS TO SUSTAIN; TARGETS 20% REVENUE FROM PROTEIN PRODUCTS & MAJOR CAPACITY EXPANSION
• **Growth Outlook:** Management expects to sustain its current revenue growth momentum of around 40% in the coming quarters, supported by higher volumes, distribution expansion and premium product categories. • **EBITDA Margin Outlook:** Management expects to sustain EBITDA margins of approximately 15% in H2 FY27, supported by better product mix, price increases and higher capacity utilization. • **Volume Growth:** Management indicated weighted-average volume growth of approximately 28–30%, with revenue growth additionally supported by pricing and product mix improvements. • **Protein Products Target:** Management expects high-protein products to contribute approximately 18–20% of total revenue over the next 2–3 years, compared with around 12% currently and 7% last year. • **Protein Product Margins:** Management indicated gross margins of over 50% in the high-protein portfolio, with yogurt among the company's highest-margin categories. • **Yogurt Growth:** Yogurt revenue surged 168% YoY in Q2 FY27, making it the fastest-growing product category. • **Yogurt Capacity Expansion:** Company commissioned a ₹40 Cr Skyr and Greek yogurt manufacturing facility at Perundurai in September 2026, increasing capacity from 20 tonnes per day to 180 tonnes per day. • **Yogurt Utilization:** Current production stands at approximately 35–40 tonnes per day, providing substantial capacity for future growth. • **High-Protein Milk Launch:** Company launched lactose-free high-protein milk in October 2026, offering 25 grams of protein per 250 ml pack, priced at ₹99. • **High-Protein Milk Distribution:** The product has a six-month shelf life and will primarily target quick commerce, modern trade and premium retail outlets. • **Product Expansion:** Management is exploring additional high-protein milk variants, including chocolate and other flavours. • **Paneer Growth:** Paneer revenue increased approximately 44% YoY, supported by around 28% volume growth and increasing demand for branded products. • **Paneer Capacity:** Current production stands at approximately 100 tonnes per day against installed capacity of 150 tonnes per day, representing around 65–67% utilization. • **Paneer Expansion Plan:** Management is exploring an additional 200-tonne-per-day manufacturing facility at Perundurai, which would increase total paneer capacity to 350 tonnes per day. • **Paneer Capacity Outlook:** Management expects existing paneer capacity to approach full utilization in approximately 24–30 months if current volume growth continues. • **Cheese Growth:** Cheese revenue increased approximately 34% YoY, while curd revenue grew 22% YoY. • **Cheddar Cheese Capacity:** Company has installed cheddar cheese capacity of 100 tonnes per day, currently operating at approximately 20% utilization. Management expects utilization to improve over the next 2–3 years. • **Ice Cream Outlook:** Management expects ice cream revenue growth of approximately 35–40% across quarters, supported by distribution expansion and increased consumption. • **Ice Cream Performance:** Ice cream revenue increased 43% YoY in Q2 FY27, supported by extended summer conditions and wider retail availability. • **Ice Cream Distribution:** Company expanded its ice cream freezer network to approximately 29,000 units from 16,000, supporting penetration into additional outlets. • **Maharashtra Manufacturing Expansion:** Company acquired 50 acres in Baramati, Maharashtra, to establish a new manufacturing facility, with operations targeted in approximately three years. • **Maharashtra Project Status:** The project remains in design and approval stages, with no final capital expenditure budget announced. • **Maharashtra Milk Procurement:** Company currently procures approximately 65,000–70,000 litres of milk daily in Maharashtra and targets 1 lakh litres per day by FY27-end. • **Procurement Expansion Target:** Management plans to increase Maharashtra procurement to approximately 2–3 lakh litres daily before commissioning the Baramati facility. • **New Plant Utilization:** Management aims to begin Maharashtra plant operations at approximately 40% capacity utilization, supported by advance development of its milk sourcing network. • **Milk Procurement Growth:** H1 FY27 milk procurement increased 31% YoY to 246.5 million litres. • **Farmer Network Expansion:** Company expanded its sourcing network to more than 92,000 farmers from approximately 75,000, supported by additional procurement centres and villages. • **Distribution Network:** Company operates approximately 4 lakh retail touchpoints, 4,200 distributors and more than 45,000 coolers and freezers. • **Quick-Commerce Growth:** Online channels contributed 21% of H1 FY27 revenue, compared with 11% in H1 FY26, supported by rising sales of protein products and daily-use dairy categories. • **Sales Channel Mix:** Modern trade contributed approximately 22%, general trade 28–30%, HoReCa 14–15%, B2B around 6% and exports approximately 4%. • **Geographical Expansion:** South India contributed approximately 70% of revenue. Management is increasing penetration in northern and central markets, including Uttar Pradesh and Bihar. • **Procurement Diversification:** Company is expanding milk sourcing across Karnataka, Maharashtra and Andhra Pradesh to reduce dependence on Tamil Nadu. • **Milk Procurement Inflation:** Milk and packaging input costs increased approximately 11–12% during H1 FY27. Management has implemented calibrated product price increases to offset inflation. • **Q3 Pricing Benefit:** Management expects a greater contribution from recent price increases in Q3 FY27, as only approximately 1.5–2% of the pricing impact was reflected in Q2. • **Milk Price Outlook:** Management does not currently expect substantial further milk procurement inflation, although prices have not yet shown a clear decline. • **Q2 Revenue:** Revenue from operations increased 41.06% YoY to ₹1,089 Cr, supported by growth across paneer, yogurt, cheese, ice cream and other value-added products. • **Q2 EBITDA:** EBITDA increased 53.9% YoY to ₹165.2 Cr, with EBITDA margin improving to 15.2% from 14% YoY. • **Q2 Net Profit:** PAT increased to ₹77.9 Cr from ₹28.4 Cr YoY, with PAT margin improving to approximately 7.2% from 3.7%. • **H1 FY27 Performance:** Revenue increased 42.5% YoY to ₹2,062.9 Cr, EBITDA increased 62.9% to ₹310 Cr, and PAT reached ₹142.6 Cr. • **Return Ratios:** Annualized H1 FY27 ROCE stood at 16.1%, while ROE was 21.1%. • **Debt Reduction:** Company completed approximately ₹750 Cr of debt repayments through pre-IPO and IPO-related funding plans. • **Balance Sheet:** Net debt stood at approximately ₹32.62 Cr as of September 2026, following IPO proceeds utilization and debt repayment. • **Capital Expenditure Outlook:** Management indicated no major additional capitalization planned over the next six months beyond ongoing approved projects and previously committed investments.
Milky Mist Dairy Food Limited