Milkfood Ltd (507621)
Q2 FY27 results
📅 Next results: 26 Oct 2026 (board meeting)Milkfood Ltd's board meets on 26 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Milkfood's revenue was ₹81.2 Cr (+9.8% year on year, -54.6% on the previous quarter), and net profit ₹0.2 Cr (against a loss a year earlier); the operating margin was 4.3%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹81.2 | +9.8% | -54.6% |
| Operating profit | ₹3.5 | from loss | +15.7% |
| Net profit | ₹0.2 | from loss | -99.6% |
| EPS (₹) | 0.09 | from loss | -99.6% |
| Operating margin | 4.3% | — | — |
📢 Recent Corporate Announcements
Milkfood Ltd has announced that its 53rd Annual General Meeting (AGM) will be held on Thursday, September 24, 2026, at 9:00 AM at its registered office in Patiala, Punjab. In compliance with SEBI Listing Regulations, the company has initiated dispatch of communication to shareholders whose email IDs are not registered, providing web links to access the Integrated Annual Report for FY 2025-26 and the AGM Notice. This is a standard annual compliance intimation with no operational or financial impact.
- 53rd Annual General Meeting scheduled for Thursday, September 24, 2026, at 9:00 AM
- Meeting venue fixed at the Registered Office in P.O. Bahadurgarh, Patiala, Punjab
- Letters dispatched to shareholders without registered emails containing online access links for the FY 2025-26 Annual Report
- Compliance intimation filed pursuant to Regulation 30 and Regulation 36(1)(b) of SEBI LODR Regulations
Milkfood Ltd has announced the closure of its Register of Members and Share Transfer Books from September 17, 2026, to September 24, 2026 (both days inclusive). This closure is in preparation for the company's Annual General Meeting (AGM) scheduled for September 24, 2026, at 9:00 a.m. at its registered office in Patiala, Punjab. This is a standard regulatory filing pursuant to Section 91 of the Companies Act, 2013, and Regulation 42 of SEBI LODR Regulations.
- Book closure period scheduled from September 17, 2026, to September 24, 2026 (both days inclusive)
- Annual General Meeting (AGM) set for Thursday, September 24, 2026, at 9:00 a.m.
- Meeting venue is the Registered Office at Bahadurgarh, Distt. Patiala, Punjab
- Filing submitted under Regulation 42 of SEBI LODR Regulations and Section 91 of Companies Act, 2013
Milkfood Ltd submitted its Annual Report for FY 2025-26, reporting total revenue from operations and other income of ₹484.59 Cr (up 7.8% YoY from ₹449.64 Cr). Net profit for FY26 stood at ₹44.29 Cr compared to ₹4.52 Cr in FY25. The report highlighted an Asset Purchase Agreement executed on January 16, 2026, for the sale of its Moradabad unit for ₹130 Cr (~58% of market cap) aimed at debt reduction and funding expansion. The Board recommended retaining profits and declared no dividend for FY26.
- Revenue from operations and other income rose to ₹484.59 Cr in FY26 from ₹449.64 Cr in FY25.
- Net profit surged to ₹44.29 Cr in FY26 compared to ₹4.52 Cr in the previous financial year.
- Executed an Asset Purchase Agreement on January 16, 2026, to sell the Moradabad unit for ₹130 Cr.
- Finance costs for FY26 stood at ₹13.76 Cr (₹1,376 lakhs) compared to ₹10.83 Cr in FY25.
- Wholly owned subsidiary MFL Trading Private Limited was struck off effective January 20, 2026.
Milkfood Limited has issued notice for its 53rd Annual General Meeting (AGM) scheduled on September 24, 2026, at its Patiala registered office. Key agenda items include the adoption of FY26 financial statements and the re-appointment of Non-Executive Director Mr. Harmesh Mohan Sood (aged 78). The company also proposes ratifying Rs. 1,00,000 remuneration for cost auditors M/s HMVN & Associates for FY 2026-27. The cut-off date for e-voting is September 17, 2026, with remote e-voting active from September 21 to September 23, 2026.
- 53rd AGM scheduled for September 24, 2026, at 9:00 AM at the Patiala registered office
- Remote e-voting window runs from September 21, 2026 (9:00 AM) to September 23, 2026 (5:00 PM)
- Cut-off date for voting rights established as September 17, 2026
- Ratification of Rs. 1,00,000 plus GST remuneration for Cost Auditors for FY 2026-27
Milkfood Ltd reported a 10.3% YoY revenue growth to ₹81.22 Cr for the quarter ended June 30, 2026. The company turned a marginal net profit of ₹0.22 Cr, improving from a loss of ₹0.69 Cr in the year-ago period. However, this profit was primarily driven by a ₹0.80 Cr fair value gain on biological assets (trees/plantation) included in other income. Significant risks remain, including contingent liabilities of ₹45.79 Cr and an ongoing GST dispute involving a ₹18.96 Cr demand.
- Revenue from operations increased to ₹8,122 lakhs (₹81.22 Cr) from ₹7,366 lakhs in the previous year's corresponding quarter.
- Net profit for the quarter stood at ₹22 lakhs (₹0.22 Cr) compared to a net loss of ₹69 lakhs in Q1 FY26.
- Other income includes a non-cash fair value gain of ₹80 lakhs from the reinstatement of biological assets (trees and plantation).
- Contingent liabilities for claims not acknowledged as debts are significant at ₹4,579 lakhs (₹45.79 Cr).
- The company is contesting a CGST demand of ₹1,896 lakhs plus an equivalent penalty related to its Patiala plant.
Milkfood Ltd reported a marginal net profit of Rs 0.22 crore for Q1 FY27, recovering from a loss of Rs 0.69 crore in the same period last year. Revenue from operations grew 10.3% YoY to Rs 81.22 crore, though it saw a sharp sequential decline from the Rs 178.93 crore reported in the preceding quarter. Profitability remains fragile, with other income (including a Rs 0.80 crore fair value gain on biological assets) significantly contributing to the bottom line. Investors should be cautious of substantial legal overhangs, including a GST demand and penalties totaling approximately Rs 37.92 crore.
- Revenue from operations increased 10.3% YoY to Rs 81.22 crore from Rs 73.66 crore.
- Net profit turned positive at Rs 0.22 crore compared to a loss of Rs 0.69 crore in Q1 FY26.
- Contingent liabilities for claims against the company stand at Rs 45.79 crore, representing ~26% of market cap.
- Ongoing GST dispute involves a demand of Rs 18.96 crore plus an equivalent penalty (Total Rs 37.92 crore).
- Other income includes a Rs 0.80 crore fair value gain on the reinstatement of trees and plantation assets.
Milkfood Ltd has announced a board meeting on August 7, 2026, to approve the unaudited financial results for the quarter ended June 30, 2026. This announcement is critical as the company seeks to recover from a TTM net loss of ₹6 crore and thin operating margins of 2.0%. Investors will be monitoring if the company can stabilize revenues, which fluctuated significantly from ₹158.03 crore in March 2025 to ₹74.05 crore in September 2025. The company's debt levels remain high at ₹128 crore relative to its ₹166 crore market capitalization.
- Board meeting scheduled for August 7, 2026, to approve Q1 FY27 results
- Trading window for designated persons closed since June 24, 2026
- Company reported a TTM net loss of ₹6 crore as of the latest available data
- TTM revenue stands at ₹419 crore against a market cap of ₹166 crore
- Operating profit margins (OPM) are currently low at 2.0%
Milkfood Ltd held an Extra-Ordinary General Meeting (EGM) on July 27, 2026, to seek shareholder approval for a preferential issue of convertible warrants to non-promoter/public investors. This capital-raising move comes as the company faces financial pressure, reporting a TTM net loss of ‹6 Cr and carrying a debt of ‹128 Cr. While the specific fundraise amount was not disclosed in the proceedings, the infusion is critical given the company's current debt-to-equity ratio of 0.76. Voting results are pending the Scrutinizer's report.
- EGM conducted on July 27, 2026, to approve the issuance of convertible warrants on a preferential basis.
- The issue is targeted at the non-promoter/public category, potentially diversifying the shareholder base.
- Company is managing a debt of ‹128 Cr against a market capitalization of ‹166 Cr.
- TTM revenue stands at ‹419 Cr, but the company remains loss-making with a TTM PAT of ‹-6 Cr.
- Promoter holding recently decreased from 56.03% in March 2026 to 53.36% in June 2026.
Financial Performance
Revenue Growth by Segment
The company operates in a single segment (Dairy Products). Total Operating Income grew 2.48% YoY to INR 447.76 Cr in FY25 from INR 436.93 Cr in FY24. However, Q1 FY26 revenue declined 23.31% to INR 73.66 Cr compared to INR 96.05 Cr in Q1 FY25.
Geographic Revenue Split
Not disclosed in available documents, though operations and brand presence are concentrated in Northern India, specifically Delhi, Punjab, and Rajasthan.
Profitability Margins
PAT margin declined from 1.60% in FY24 to 1.01% in FY25. Net Profit (PAT) fell 36.52% YoY to INR 4.52 Cr in FY25 from INR 7.12 Cr in FY24, primarily due to pressure on margins and price fluctuations.
EBITDA Margin
EBITDA margin improved to 5.28% in FY25 from 4.50% in FY24. Absolute EBITDA grew 20.17% YoY to INR 23.65 Cr in FY25 from INR 19.68 Cr in FY24.
Credit Rating & Borrowing
Ratings were downgraded in November 2025 to IVR BB+/Negative (Long Term) and IVR A4+ (Short Term) from IVR BBB-/Negative and IVR A3 respectively. The downgrade reflects continuous declines in revenue and profitability in Q1 and Q2 FY26.
Operational Drivers
Raw Materials
Raw milk (primary input for Ghee and Milk Powder) and buffalo milk (specifically for cheese export opportunities). Raw milk represents the core cost component, though specific percentage of total cost is not disclosed.
Import Sources
Sourced domestically from rural areas in Northern India, primarily Punjab and Uttar Pradesh (near Moradabad and Patiala plants).
Key Suppliers
Not disclosed in available documents; sourced from a wide network of rural farmers and milk producers.
Capacity Expansion
Current installed capacity includes 11,700 MTPA for Ghee at the Patiala plant, 5,400 MTPA for Butter, and 12,240 MTPA for Skimmed Milk Powder at the Moradabad plant. No specific planned expansion timeline is disclosed.
Raw Material Costs
Procurement costs are highly sensitive to agro-climatic factors and seasonal availability. Lower milk availability during peak flush seasons leads to higher procurement costs, squeezing margins.
Manufacturing Efficiency
The company performs job work for Rajasthan Cooperative Dairy Federation Limited (Patiala) and Mother Dairy Fruit and Vegetable Private Limited (Moradabad) to utilize its manufacturing facilities.
Logistics & Distribution
The company utilizes an established distribution network and institutional buyers to serve Northern India.
Strategic Growth
Growth Strategy
Strategy focuses on leveraging the industry shift from loose to packaged milk, expanding the portfolio of value-added dairy products, and utilizing established brand equity to increase market share in Northern India.
Products & Services
Desi Ghee, Skimmed Milk Powder, Whole Milk Powder, and Butter.
Brand Portfolio
Milkfood
New Products/Services
Focus on value-added dairy products and Western dairy products, which are expected to grow at a faster clip than traditional products.
Market Expansion
Targeting deeper penetration in Northern India (Delhi, Punjab, Rajasthan) and leveraging export opportunities for buffalo milk-based cheese.
Strategic Alliances
Job work agreements with Rajasthan Cooperative Dairy Federation Limited and Mother Dairy Fruit and Vegetable Private Limited.
External Factors
Industry Trends
The Indian dairy industry is shifting toward the organized sector, with packaged products progressively replacing loose milk. Value-added dairy products are expected to grow at a robust pace.
Competitive Landscape
Competes with major cooperatives like Amul, large private players like Country Delight, and numerous unorganized sector participants.
Competitive Moat
The company possesses a 50-year brand legacy ('Milkfood') and an established distribution network in Northern India. However, this moat is challenged by the aggressive pricing and scale of large cooperatives.
Macro Economic Sensitivity
Highly sensitive to rural income levels, urbanization trends, and the growth of the Indian economy, which impacts the demand for processed and packaged foods.
Consumer Behavior
Increasing health consciousness and a preference for protein-rich food among the large vegetarian population in India are driving demand for dairy products.
Regulatory & Governance
Industry Regulations
Operations are governed by the Food Safety and Standards Act, 2006, which emphasizes self-compliance and scientific development of food processing standards.
Risk Analysis
Key Uncertainties
Vulnerability to agro-climatic factors (droughts/cattle diseases) and volatility in raw milk prices are the primary business risks, potentially impacting margins by increasing procurement costs.
Geographic Concentration Risk
High concentration in Northern India, particularly Delhi, Punjab, and Rajasthan.
Third Party Dependencies
Dependency on job work from Mother Dairy and Rajasthan Cooperative Dairy Federation for capacity utilization.
Technology Obsolescence Risk
The company uses innovative technologies for processing, but faces risks from a lack of adequate testing equipment in government labs which can cause industry-wide confusion.
Credit & Counterparty Risk
Maintains healthy relationships with customers and institutional buyers; however, liquidity is tight with a cash balance of only INR 0.49 Cr as of September 2025.
