💰 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.