UMANGDAIRY - Umang Dairies

📊 NSE: UMANGDAIRY 🏢 Food - Processing - Indian 📅 Last Updated: 12/14/2025 14:42

💰 Financial Performance

Revenue Growth by Segment

The Dairy Products segment, which accounts for 100% of operations, saw revenue decline by 20.29% YoY, falling from INR 286.19 Cr in FY24 to INR 228.12 Cr in FY25.

Geographic Revenue Split

100% of revenue is generated in India, with primary operations and manufacturing concentrated in Uttar Pradesh.

Profitability Margins

Profitability deteriorated significantly; the company reported a Net Loss of INR 0.17 Cr in FY25 compared to a Net Profit of INR 1.38 Cr in FY24. Operating Profit before working capital changes fell 30.6% to INR 7.49 Cr.

EBITDA Margin

The EBITDA margin (Operating Profit) was 3.28% in FY25, a decrease from 3.77% in FY24, primarily due to lower scale and volatile raw material costs.

Capital Expenditure

Capital expenditure on Property, Plant, and Equipment was INR 3.67 Cr in FY25, a 278% increase from INR 0.97 Cr in FY24. Capital Work-in-Progress rose to INR 2.22 Cr.

Credit Rating & Borrowing

CARE assigned a 'CARE BBB+; Stable' rating in May 2024, which was subsequently withdrawn in August 2025 following the company's amalgamation. Finance costs were INR 4.70 Cr in FY25.

⚙️ Operational Drivers

Raw Materials

Raw materials include Raw Milk, Skimmed Milk Powder (SMP), and Butter, which constitute the bulk of the cost of goods sold.

Import Sources

Raw materials are sourced domestically, primarily from the state of Uttar Pradesh through local milk collection networks.

Key Suppliers

Not disclosed in available documents; however, the company relies on a large network of local dairy farmers and unorganized collectors.

Capacity Expansion

Current capacity is not specified in MT, but Capital Work-in-Progress increased by 3180% to INR 2.22 Cr, indicating ongoing facility upgrades at the Gajraula plant.

Raw Material Costs

Raw material costs are highly volatile; a moderation in raw milk prices in FY24 improved margins to 3.7%, but subsequent fluctuations led to a loss in FY25.

Manufacturing Efficiency

Manufacturing efficiency is impacted by the seasonal nature of operations; depreciation decreased by 8.9% to INR 4.40 Cr in FY25.

📈 Strategic Growth

Expected Growth Rate

3.50%

Growth Strategy

Growth will be achieved through a major corporate restructuring; the dairy business is being demerged into Panchmahal Properties Limited, while the residual business is amalgamating into Bengal and Assam Company Limited (BACL) to leverage group-wide synergies and financial scale.

Products & Services

Skimmed Milk Powder (SMP), Butter, Ghee, and Liquid Milk.

Brand Portfolio

Umang Dairies and the JK Group brand.

Market Expansion

Restructuring aims to consolidate the dairy business under a specialized entity (PPL) to focus on market expansion in North India.

Market Share & Ranking

Not disclosed; however, the company faces intense competition from large cooperatives like Amul and Mother Dairy.

Strategic Alliances

Scheme of Arrangement with Bengal and Assam Company Limited (Parent) and Panchmahal Properties Limited.

🌍 External Factors

Industry Trends

The industry is shifting toward organized players and value-added products (VADP) like flavored milk and cheese, which offer 10-15% higher margins than basic commodities.

Competitive Landscape

Intense competition from large-scale organized cooperatives and a fragmented unorganized sector that controls a significant portion of milk collection.

Competitive Moat

The primary moat is the 'JK Group' association, which provides a cost-of-capital advantage and financial support during lean seasonal cycles.

Macro Economic Sensitivity

Highly sensitive to inflation in cattle fodder prices and rural income levels, which dictate milk procurement costs and supply.

Consumer Behavior

Increasing consumer preference for branded, packaged dairy products over loose milk is driving demand for Umang's processed products.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by FSSAI food safety standards and ISO 9001:2008/HACCP quality certifications.

Environmental Compliance

The company is ISO 14001:2004 and OHSAS 18001:2007 certified, indicating compliance with environmental and safety standards.

Taxation Policy Impact

The company paid direct taxes of INR 0.31 Cr in FY25.

Legal Contingencies

The company was involved in NCLT proceedings (Case CP.(CAA)No. 16/ALD/2024) regarding the approval of its Scheme of Arrangement for amalgamation.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the volatility of milk and SMP prices; the high inventory of INR 62.27 Cr poses a risk of significant write-downs if market prices for dairy commodities fall.