Milky Mist Q1 FY27 Results, Profit Jumps 890%, But The Quarterly Comparison Has A Twist

Milky Mist delivered a strong first quarterly result after entering the stock market. Revenue increased 43.6%, while net profit moved from ₹6.53 crore to ₹64.68 crore compared with Q1 FY26. The stock responded by touching its 10% upper circuit on September 1, 2026.

However, Q1 profit was 30% lower than the immediately previous quarter. That appears negative at first, but most of the decline came from an exceptional tax benefit recorded in Q4 FY26, rather than weaker business performance. Revenue, EBITDA and profit before tax all increased sequentially.

What Does Milky Mist Do

Milky Mist is a packaged food company built around value added dairy products. Instead of depending mainly on fresh packaged milk, it converts milk into products such as paneer, cheese, curd, yogurt, butter, ghee, ice cream, milkshakes and desserts.

The company has also expanded into chocolates, frozen foods, ready to cook products and high protein products. It currently offers more than 640 products across 22 categories under Milky Mist and other brands such as SmartChef, Capella, Briyas and Asal.

Paneer is the largest category for Milky Mist. During FY26, paneer contributed approximately 29% of total revenue, while the company held around 19% of the organised packaged paneer market in India.

How Milky Mist Makes Money

Milky Mist procures milk directly from more than 83,000 farmers through around 3,000 collection centres. The milk is processed at its highly automated manufacturing facility in Perundurai, Tamil Nadu.

The company also controls much of its distribution network. It has more than 4,200 distributors, around 3.94 lakh retail touchpoints, more than 375 vehicles and over 41,000 coolers and freezers across 22 states and 5 Union Territories.

This integrated model gives Milky Mist control over milk quality, production, storage and delivery. It also helps the company sell branded dairy products at premium prices and earn better margins than a business focused mainly on fresh liquid milk.

Milky Mist Q1 FY27 Results

How Q1 FY27 Compares With Q4 FY26

Revenue increased from ₹849.59 crore in Q4 FY26 to ₹973.45 crore in Q1 FY27. This represents sequential growth of 14.6%, indicating that the company carried strong business momentum into the new financial year.

Gross profit increased 9.7%, from an estimated ₹303.57 crore to ₹333.02 crore. EBITDA increased 7%, from approximately ₹135.40 crore to ₹144.89 crore, while profit before tax increased 11.7%, from ₹65.78 crore to ₹73.51 crore.

Net profit was the only major figure that declined sequentially. It fell 30%, from ₹92.41 crore in Q4 FY26 to ₹64.68 crore in Q1 FY27.

The Q4 FY26 figures disclosed by Milky Mist are balancing figures calculated from the audited FY26 numbers and the management figures for the first 9 months. Since Milky Mist was not listed during Q4 FY26, these quarterly figures were not separately reviewed or audited.

Why The Sequential Profit Decline Is Not As Bad As It Looks

Milky Mist reported profit before tax of ₹65.78 crore in Q4 FY26, but net profit was much higher at ₹92.41 crore. This happened because the company recorded a net tax benefit of ₹26.63 crore during the quarter.

In Q1 FY27, the company reported profit before tax of ₹73.51 crore and a tax expense of ₹8.83 crore. The movement from a tax benefit in Q4 to a tax expense in Q1 created a tax swing of around ₹35.46 crore.

This tax movement explains why net profit declined even though the underlying business continued to expand. Profit before tax, which provides a cleaner comparison in this case, increased 11.7% sequentially.

Why The Quarter Was Strong

Growth was spread across the major product categories. Paneer revenue increased 34%, from ₹184.92 crore to ₹248.29 crore, while cheese revenue increased 38%, from ₹99.47 crore to ₹137.12 crore.

Curd revenue grew 27% to ₹123.79 crore. Ice cream revenue increased 60% to ₹102.25 crore, while yogurt emerged as the fastest growing category with revenue growth of 153% to ₹84.52 crore.

An extended summer in South India supported demand for ice cream, curd and yogurt. Higher volumes, better product mix, pricing ability and greater utilisation of manufacturing infrastructure helped Milky Mist improve its year on year margins.

The company also commissioned a new cheddar cheese plant with a capacity of 120 MT per day during the quarter. This gives Milky Mist additional capacity to grow its cheese business over the coming years.

Where The Results Show Some Weakness

The sequential margin comparison was not as strong as the year on year comparison. Gross margin declined from approximately 35.73% in Q4 FY26 to 34.21% in Q1 FY27.

EBITDA margin also declined from approximately 15.94% to 14.88%. This means revenue grew faster than operating profit compared with the immediately previous quarter.

The cost of materials consumed increased around 22.1% sequentially, faster than the 14.6% growth in revenue. Inventory movements also affect this comparison, but the lower gross margin shows some cost and product mix pressure compared with Q4.

The seasonal boost from the extended summer may also not continue at the same level. Investors should therefore avoid assuming that yogurt growth of 153% or ice cream growth of 60% will repeat every quarter.

What Happened To Milky Mist Share Price

Milky Mist entered the stock market on August 18, 2026, at ₹165 per share, compared with its IPO price of ₹140. The stock closed at ₹210.94 on August 31, before the Q1 results were released after market hours.

On September 1, the stock jumped 10% and touched its upper circuit of ₹232.03. At that level, it was trading around 66% above the IPO price and approximately 41% above the listing price.

The market appears to have focused on the 43.6% revenue growth, EBITDA margin expansion and sharp year on year improvement in profit. The sequential decline in net profit did not worry investors because it was largely explained by the tax benefit recorded in Q4 FY26.

However, the stock had already risen sharply before the result and had touched a record high of ₹233.80 on August 27. The strong business performance is therefore accompanied by high market expectations.

How The IPO Could Change Future Results

Milky Mist raised ₹1,428 crore through the fresh issue portion of its IPO after the June quarter ended. Therefore, the Q1 FY27 results do not reflect the complete financial impact of the IPO proceeds.

The company plans to use around ₹496.9 crore for debt repayment, ₹469.2 crore for expansion and modernisation of its Perundurai facility, and ₹155.3 crore for additional coolers and freezers. Debt repayment could reduce finance costs, while manufacturing and distribution investments could support future revenue growth.

The benefit will depend on how efficiently Milky Mist uses the new capacity. Large plants can improve margins when utilisation rises, but they can also increase depreciation and fixed costs if demand develops slowly.

What Investors Should Watch Next

Revenue growth alone will not be enough after such a strong quarter. Investors should track whether Milky Mist can maintain its EBITDA margin near 15%, recover the sequential decline in gross margin and generate sufficient demand for the new cheddar cheese capacity.

Geographic expansion is another important factor. Around 71% of Q1 revenue came from the southern states, making expansion into western, northern and eastern India important for reducing regional concentration.

Debt reduction and finance costs will also need attention. Finance costs already declined 12.6% sequentially to ₹23.99 crore, and the planned use of IPO proceeds could bring them down further.

Final Takeaway

Milky Mist delivered a genuinely strong Q1 FY27 performance. Revenue, gross profit, EBITDA and profit before tax all recorded healthy growth, while the apparent sequential decline in net profit was mainly caused by the exceptional Q4 tax benefit.

The main concern is the sequential decline in gross and EBITDA margins, along with the seasonal support received from an extended summer. The results justify a positive view of business execution, but the sharp rise in the share price means future quarters will need to deliver consistent growth rather than another impressive headline alone.