Milky Mist Dairy Food Ltd (MILKYMIST) Q2 FY27 Results Analysis: PAT Surges 174%, Revenue Hits Record High

Milky Mist Dairy Food Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,089.40 Cr (+41.58% YoY) and PAT growth of +174.52% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Milky Mist delivered its highest-ever quarterly revenue of Rs.1,089.40 Cr (+41.58% YoY) with EBITDA margin up 121 bps YoY to 15.16% and PAT up 174.52% YoY (74.41% ex-deferred-tax). The IPO transformed the balance sheet, cutting net debt to Rs.27.97 Cr, while CFO ran at 1.61x PAT. The key watch item is milk-cost inflation (Rs.6/litre cumulative hike) compressing ex-other-income margins 31 bps QoQ ahead of the stated 2-3 month pricing pass-through.

Key Investment Insights

Key Positives

• Revenue grew 41.58% YoY to Rs.1,089.40 Cr, the highest-ever quarterly revenue, with H1 up 42.50% YoY
• EBITDA grew 53.90% YoY to Rs.165.21 Cr with margin up 121 bps YoY to 15.16%
• PAT grew 174.52% YoY to Rs.77.94 Cr; ex-deferred-tax PAT still grew 74.41%
• Gross margin expanded 112 bps YoY to 33.86%
• Employee costs fell to 5.35% of revenue from 6.15% YoY, showing operating leverage
• IPO (Rs.1,785 Cr net proceeds) cut borrowings by Rs.766.23 Cr; net debt fell to Rs.27.97 Cr from Rs.1,658.26 Cr
• H1 CFO of Rs.229.42 Cr was 1.61x PAT
• Finance costs fell 17.0% QoQ to Rs.19.91 Cr after debt repayment

Risk Factors

• Other expenses grew 53.83% YoY to 14.05% of revenue (vs 12.93%), outpacing revenue growth
• Ex-other-income EBITDA margin compressed 31 bps QoQ (14.77% to 14.46%) on milk-cost inflation
• Gross margin dipped 35 bps QoQ (34.21% to 33.86%)
• Milk procurement cost raised cumulatively Rs.6/litre in August 2026, with 2-3 month pricing gestation pending
• Reported PAT growth of 174.52% overstates momentum due to a Rs.10.34 Cr deferred tax credit
• H1 free cash flow was negative at Rs.17.64 Cr due to Rs.247.06 Cr capex