Revenue growth masks margin compression; core category volume stalled

₹944.6 Cr, 10.9% YoY growth — essentially matched

Margins declined 70bps QoQ (28% to 27.3%), though YoY gross margin % stable; real decline masked

PAT -20.1% YoY, QoQ -31.6% — sequential collapse severe; tax attribution unverified

59% growth, 13% contribution (vs 9% Q1 last year) — strongly supported

Core categories down 2% volume YoY; management cites selective B2B exit. B2C specifics withheld (described only as 'high single digit or close to double digit')

Stated margin 7.4% but OPM in delivered result 7.2%; sequential margin compression evident

Prior call aspired to double-digit volume growth; now acknowledging 'transient slowdown' with only 'high single digit or close to double digit' in B2C. Core volume -2% YoY actual

Double-digit EBITDA margin aspiration ('coming years') now stalled at 7.4%, down 30bps YoY. Tax headwinds and milk inflation cited; no near-term recovery expected

Management now openly acknowledging selective B2B exits to protect profitability vs prior calls that emphasized breadth. Indicates competitive pricing pressure

New Age now 13% (up from 9% Q1 last year), 59% YoY growth. Management reaffirmed 20-25% contribution in 3-5 years (unchanged). Ahead of expectations

Announced doubling of cheese capacity from 60 to 120 MT/day by Mar 2028 (previously only alluded). Parallel whey protein expansion represents structural upgrade

Certainly more than 10% because Q1 is always weak. Q2/Q3 with festive season will drive growth above 10% this year.

Very strong volume growth backed by new categories (ready-to-drink, protein for beginners, various formats). Prices haven't gone up 100%; only staggered increases.

Channel-specific strategy. Vending machines, pharmacies, quick commerce are our target channels. Coffee category is new; will scale over quarters. Targeting 1.5M outlets in 3 years.

Cannot disclose specifics. Brand-building is about right eyeballs for awareness. Website traffic up 200% over 2 months. Media reach details not shared.

Dahi reclassified to Flagship categories. Others includes beverages/UHT/misc. GST rate changes (12% to 5% on ghee/cheese post-Sept 2025) reduced PSI income.

Gross margin down 70bps QoQ (inventory lag on milk costs), but blended Y-o-Y shows 11% sales growth = 11% GM growth. New age benefit offset by milk prices. Calibrated pricing strategy continues.

B2C is not declining. B2B down due to profitability focus on certain low-margin channels. Overall core volume -2%, but B2C growth strong.

High single digit or close to double digit. Cannot share exact numbers due to competitive sensitivity.

Not temporary. Global demand up due to fat reduction medicines and protein recommendations. Structural, futuristic demand-supply gap in protein.

All flagship categories growing fast. Paneer in double digits. Aspiration is double-digit overall. Profitability focus is key. Last year full-year core was 8% volume.

Landing price for own vs agent procurement is same. EBITDA margin 7.4% vs 7.7% stable. Heavy brand spend is primary margin driver vs competitors.

Cannot detail specific channels. B2B is quarterly/monthly contract basis—some come and go. Will maintain profitability focus over volume.

Do not disclose product-level production costs. Blended portfolio approach used.

Investment was INR 4.6 Cr (not INR 50 Cr). Collaborative project with Tata Solar. 5,000 cattle generate biogas. Future site expansions planned.

Margins ~double company average. Do not disclose category-level margins. Guidance on mix not provided.

Positive. We make 100% milk fat paneer. Ban on vegetable fat paneer eliminates bad quality competition. Good for organized industry.

Milk prices stable, maybe slight increases due to monsoon seasonality. New Age evolution from 9% to 13% is 50% jump. Maintenance of trend is remarkable; no specific revenue target given.

60 to 120 MT/day is finished cheese capacity. Done by March 2028. Milk procurement increase required simultaneously.

75% from quick-com, e-com, website; 25% traditional retail. Market share vs competitors not provided.

Milk flush expected due to monsoon. Demand for value-added categories expected up. Prices stable currently, but dynamic environment.

Fair value changes on biological assets (annual, higher in March). Q1 last year had one-off from Sonipat plant sale. Current Q1 very low (mostly interest).

Q1 is typically weakest; Q2/Q3 festive season expected to drive higher growth. Full-year guidance implicit from Q&A

No numeric target stated; management emphasizes balance vs aggressive expansion. Milk price inflation being passed through selectively

Cheese capacity doubling from 60 to 120 MT/day by March 2028 (1.5 years). Parallel milk procurement increase required

Flagship category volume -2% YoY despite distribution expansion into new cities and South India. Management attributes to B2B margin discipline (selective exits), but signals market softness or lost pricing power.

Gross margin 27.3% (-70bps QoQ, -30bps YoY); OPM 7.2% (vs 7.7% prior); PAT -20.1% YoY despite 10.9% revenue growth. Milk cost inflation (INR42, +13% YoY) being passed gradually. Tax impact cited but Q1 profitability severely compressed.

Flagship category (esp. cheese) B2B channel declining volume due to management's refusal to match competitive pricing. In 3-4 player cheese market, competitors gaining share. Management defending profitability but risking strategic position.

Announced doubling of cheese production capacity (60→120 MT/day) by March 2028. Requires parallel milk procurement increase. No guidance on capex overspend or timeline slippage risk. Milk sourcing concentration (60% from agents) adds execution complexity.

Avvatar revenues 75% from e-commerce, quick commerce, website. High channel concentration exposes to platform margin cuts, competitive pricing, or algorithm changes. Quick-comm economics under pressure.