Milky Mist Dairy Food Ltd. experienced a significant surge in its stock price, closing up 8.62% at Rs 252.04 on September 2, 2026. This impressive market performance followed the announcement of the company's robust Q1 FY27 financial results, which showcased substantial growth across key metrics.
Strong Q1 FY27 Performance Fuels Optimism
For the first quarter of fiscal year 2027, Milky Mist reported a revenue of Rs 973.4 crore, marking a substantial 43.6% increase year-on-year. This growth was primarily driven by strong demand in its core product categories, particularly paneer, cheese, and curd.
- Paneer revenue grew by 34%
- Cheese revenue increased by 38%
- Curd revenue saw a 27% rise
- The standout performer was yogurt, with revenue skyrocketing by 153%
- Ice cream also contributed significantly, growing by 60%
The company's profitability also saw a remarkable improvement. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) surged by 77% year-on-year, reaching Rs 143.8 crore. This led to an expansion in the EBITDA margin to 14.8% from 12% in the previous year. Gross margin also improved by 275 basis points to 34.2%, attributed to a richer product mix and strategic pricing.
Profit After Tax (PAT) for Q1 FY27 stood at Rs 64.7 crore, a significant leap from Rs 6.5 crore reported in Q1 FY26. This was further bolstered by a 29% decline in finance costs, which came in at Rs 24 crore.
DAM Capital Maintains 'Buy' Rating, Raises Target
Following the strong results, brokerage firm DAM Capital reiterated its 'Buy' rating on Milky Mist Dairy Food Ltd. The firm expressed confidence in the company's ability to sustain its growth momentum, projecting revenue to grow at a 26.5% compounded annual rate from FY26 to FY29E. Additionally, DAM Capital anticipates an improvement in margins by 226 basis points over the same period.
DAM Capital has also revised its revenue estimates upwards for FY27E, FY28E, and FY29E by 1.5%, 3.4%, and 8.7% respectively. Correspondingly, EBITDA estimates were raised by 8.9%, 11.3%, and 16.3% for these years.
The brokerage has set a new 12-month target price of Rs 285 for Milky Mist, valuing the company at 40 times its FY29E EPS. This target implies a potential upside of approximately 13% from the stock's closing price of Rs 252.04 on Wednesday.