Dairy company Milky Mist Dairy Food has reported stronger-than-expected performance in FY26, surpassing its own growth projections driven by wide-ranging demand across its product portfolio.
According to CEO and Whole-time Director K. Rathnam, the company aimed for 33% revenue growth but achieved around 34%, supported by strong sales in categories such as ice creams, beverages, paneer, cheese, and protein-based products.
The company recorded revenues of approximately ₹3,275 crore during the financial year.
Strong Demand Across Product Categories
Milky Mist’s value-added dairy portfolio, which spans from breakfast to dinner-time products, has helped it maintain steady growth despite broader market conditions.
The strongest momentum came from emerging protein-focused products like Greek yogurt, high-protein paneer, and high-protein cheese, which saw around 100% year-on-year growth.
An early and intense summer season also boosted demand for ice creams and beverages, pushing sales higher than last year.
Rising Costs and Market Trends
The company noted a 15–20% increase in packaging material costs, which may slightly impact profit margins. However, overall demand strength is expected to offset some of the pressure.
Quick commerce platforms have also become a key distribution channel, now contributing about 10% of total revenue.
IPO Plans and Expansion Strategy
Milky Mist received SEBI approval in October 2025 for its ₹2,035 crore IPO, which includes a fresh issue of ₹1,785 crore and an offer for sale of ₹250 crore by promoters. The company is currently waiting for the right market conditions to proceed with the listing.
The firm, originally founded in Erode, Tamil Nadu, operates as a pure value-added dairy brand without selling liquid milk, allowing it to maintain FMCG-like margins.
Manufacturing Expansion and Future Plans
The company has expanded capacity over the past two years and now has significant room for further growth. Existing facilities in Tamil Nadu are capable of scaling up to three to four times current revenue levels.
Milky Mist is also setting up a new facility in Baramati, Maharashtra, after signing an investment agreement with the state government. This move is aimed at expanding its presence beyond southern India, where around 25–30% of revenue currently comes from non-South markets.
