Parag Milk Foods Expands Focus to Health and Nutrition with Protein Strategy
Parag Milk Foods is undergoing a strategic shift from traditional dairy to focus more on health and nutrition, primarily through protein-led initiatives. This move is part of a long-term transformation rather than a short-term tactical change, according to Executive Director Akshali Shah.
In the second quarter of FY26, Parag Milk Foods reported its highest-ever quarterly revenue of ₹1,008 crore, a 16% year-on-year increase. The first half of FY26 saw revenues reach ₹1,859 crore, marking a 14% increase from the previous year. EBITDA also rose by 12% to ₹155 crore, with a volume growth of 8%.
Despite its new focus, the company's core dairy products such as ghee, cheese, and paneer remain the primary revenue contributors, accounting for 59% of total turnover in Q2 FY26. These segments experienced 23% value growth and 14% volume growth.
The company's whey protein brand, Avvatar, has grown significantly, capturing nearly 10% of the Indian whey protein market. Parag Milk Foods is currently the only domestic manufacturer supplying whey protein to India’s sports nutrition market, providing a supply-side advantage.
Parag’s premium and clean-label products, including the brands Pride of Cows and Avvatar, have increased their share of overall revenue to 9% in Q2 FY26, up from 6% the previous year. This segment saw a 79% year-on-year growth, indicating strong consumer demand for premium, nutrition-focused products.
The company is also addressing India’s protein deficit, as internal research showed a significant portion of the population to be protein-deficient. To meet this demand, Parag plans to expand Avvatar into ready-to-drink formats and protein snacks.
To support international growth, Parag has established a subsidiary in Dubai, targeting markets in the Gulf and East Africa. This expansion is expected to enhance the company's growth prospects over the next 18 months.
