New verticals, margin expansion in focus as Milky Mist enters second listed quarter
Debut quarter showed 44% revenue growth and sharp margin expansion. Q2 will test whether the newly commissioned high-protein and Greek yogurt lines can sustain momentum while gross margins hold steady.
The setup: charting course in year two
Milky Mist's debut quarter as a listed company delivered on scale—₹973 Cr revenue (+44% YoY), gross profit ₹333 Cr (34% margin), and PAT ₹65 Cr (+890%, off a thin base from unlisted-period accounting). The Street now watches whether the company can sustain that momentum while integrating ₹40 Cr of newly commissioned manufacturing capacity and scaling premium product lines. Q2 earnings (Oct 29) will be the first read on execution against the 26.5% CAGR guidance DAM Capital flagged for FY26–FY29E.
~₹320–360 Cr
On-plan growth trajectory; seasonality and new product ramp weigh sequentially
33–35%
Sustain Q1 level (34%); new high-margin products offset any input-cost drag
14–15%
Hold Q1 floor (14.9%); capex/absorption impact on opex discipline in focus
Thin (1 analyst)
DAM Capital sees 26.5% CAGR to FY29E; one-analyst estimate at ₹175 target (vs. ₹309 price) now appears stale
On track: scale, margin mix, non-South push
Milky Mist entered FY27 with three structural tailwinds. First, pricing power—Q1 gross profit surged 56% on 44% revenue, signalling room to raise prices or shift to higher-margin curd/value-added products. Second, new capacity—the ₹40 Cr Skyr and Greek yogurt plant (live Sep 10) targets the premium yogurt segment (higher-margin, aspirational), while the Oct 15 high-protein milk launch (25g protein, lactose-free, 250 ml pack) taps the health/wellness consumer. Ramp-up speed into Q3–Q4 will be key. Third, geographic reach—management guided to 50% YoY growth in non-South markets; commissioning of solar capacity and visi-cooler rollout (plan: 50,000 units in 3 years) should support branch depth. For Q2 to stay on-plan, volume growth must hold in the core South milk/curd base while new SKUs gain trial.
What the Street says
What's changed since Q1: product, capacity, clarity
Oct 22, 2026
Board meeting scheduled for Oct 29 (Q2 results approval)
Routine; Q2 results announcement day
Oct 15, 2026
High-protein milk launch (250 ml, 25g protein, lactose-free)
Product diversification into premium wellness segment; early uptake velocity key to margin outlook
Oct 10, 2026
FSSAI clarification on Paneer inquiry
Regulatory certainty; low-impact risk flagged and resolved quickly
Sep 30, 2026
10 MW solar plant commissioned; total renewable capacity now 41 MW
Capex absorption; future cost-of-energy headwind mitigated; ESG upside
Sep 10, 2026
Skyr & Greek yogurt manufacturing plant commissioned (₹40 Cr capex)
Capacity live; ramp profitability and utilization rate critical to Q2–Q3 margins
1 · Revenue growth trajectory and volume vs. pricing
Did the company sustain 40%+ YoY growth, or has momentum moderated to the 26–30% range? Watch for management commentary on volume (liters/units) vs. pricing power and early demand for high-protein milk. Slowdown would flag execution risk on the 26.5% CAGR guide.
2 · Gross margin and product mix
Can Milky Mist hold the Q1 gross margin (34%) or higher? Watch the mix contribution from Skyr/yogurt (higher-margin) vs. any commodity input-cost pressure in core milk. Margin compression below 32% would concern margin-expansion bulls.
3 · Capex drag and EBITDA sustainability
The ₹40 Cr Skyr plant is live but likely operating below capacity in Q2. Will EBITDA margins hold the 14–15% range, or will depreciation/underabsorption drag the margin down? Any management commentary on payback timeline and utilization ramp would anchor confidence in profitability trajectory.
The bottom line: Milky Mist's listing debut was strong—44% growth, sharp margin expansion, and a clear capex/product strategy to diversify beyond commodity milk. Q2 will test whether new SKUs (high-protein, Skyr/yogurt) ramp fast enough to sustain gross-margin gains while newly commissioned plants absorb capital efficiently. With only one analyst covering the stock and overbought technicals, execution credibility and Q3–Q4 guidance will be critical to justify the premium valuation. Watch volume and pricing health, gross margin resilience, and capex payback confidence as the frame for the print.
Milky Mist Q2FY27: consolidated PAT +174.5% YoY (~74% adjusted), revenue +41.6%, margins up
PAT +174.5% YoY · revenue +41.58% · margins expanding
₹1,089.4 Cr
+41.58% YoY
₹77.94 Cr
+174.5% YoY
7.1%
₹1.1
Milky Mist Dairy Food's consolidated Q2FY27 (quarter ended September 30, 2026) revenue rose 41.6% YoY to ₹1,089.40 Cr (+11.9% QoQ from ₹973.45 Cr in Q1FY27), a fresh quarterly high. Consolidated PAT was ₹77.94 Cr, up 174.5% YoY and 20.5% QoQ, with EBITDA at ₹165.21 Cr (+53.9% YoY) and EBITDA margin at 15.17% versus 13.95% a year ago and 14.77% last quarter — margin expansion on both legs. Standalone tracks consolidated closely (revenue ₹1,091.60 Cr, PAT ₹77.55 Cr), confirming the subsidiary (Asal Food Products) is immaterial to the group number; consolidated is the primary basis here.
Q2 FY-2027 vs prior quarters
No year-ago quarter on record — YoY cells may be blank.
The headline 174.5% YoY PAT growth is flattered by tax: the quarter carried a ₹10.34 Cr deferred-tax credit versus a ₹10.37 Cr deferred-tax charge in the year-ago quarter, a swing tied to the shift to the new income-tax regime (Section 200 of the Income Tax Act, 2025) effective April 2026 and the resulting remeasurement of deferred tax assets/liabilities — a driver management itself cites in the press release. Stripping the deferred-tax line (current-tax-only basis), adjusted PAT grew approximately 74% YoY to ~₹67.6 Cr — still well ahead of the 41.6% revenue growth and broadly consistent with the 53.9% EBITDA growth plus operating leverage, but a materially more modest number than the reported 174.5%. Gross margin improved to 33.86% from 32.74% YoY, inside the 33-35% range flagged pre-result, with management pointing to calibrated price increases, capacity utilisation and mix shift — yogurt was the fastest-growing category this quarter (Skyr and Greek Yogurt four-packs launched in Q2, following High-Protein Paneer Cubes in Q1 and High-Protein Milk on October 15) — as the operating drivers.
The stock went into the print at ₹309.16, up 53.1% over the past month of trading.
Paneer market to grow 20.6% CAGR to FY30; organized paneer from ~₹40.6 Bn (FY25) to ₹102 Bn (FY30) at 20%+ CAGR. Operating margin expected ~15% (management cautious on confirmation). Capex ₹650 Cr over 3 years already funded. No explicit FY27 revenue/PAT guidance.
— This quarter: beat
Street coverage remains thin: only DAM Capital tracks the stock, and no Q2FY27-specific estimate surfaced in search; its post-Q1 note held a Buy rating with a ₹285 target (40x FY29E EPS) but no quarter-level PAT/EPS call, so vsStreet is unknown rather than a tracked beat or miss. Against the company's own pre-result markers the print cleared the bar: EBITDA margin of 15.17% is at the top of the 14-15% guided range and gross margin of 33.86% sits inside the 33-35% target; the only standing long-term marker from the last concall (~15% operating margin, given cautiously) is already exceeded. This is the company's second quarter as a listed entity after its August 18, 2026 NSE/BSE debut; the quarter's other developments — the October protein-milk launch and the routine insider-trading window closure — are incremental, with the ₹650 Cr multi-year capex programme (Perundurai expansion, per the IPO-proceeds utilisation note) continuing as planned.
W1
Whether EBITDA margin holds above the 14-15% guided band as new capacity (Perundurai expansion, part of the ₹650 Cr multi-year capex) ramps — Q2 is already at the top of that range
W2
Whether the ~₹10.3 Cr deferred-tax benefit normalizes next quarter — reported PAT growth should decelerate toward the EBITDA-growth rate once the tax-regime transition laps
W3
Gross-margin trajectory (33.86% this quarter) as the protein/VADP mix continues to shift, per management's stated focus