Milky Mist Sees Paneer Driving Quarterly Revenue Past Rs 1,000 Crore

Paneer has emerged as the primary growth driver for newly listed dairy company Milky Mist Dairy Food Ltd as it enters a quarterly revenue trajectory exceeding Rs 1,000 crore, supported by consumer transitions from loose, unbranded dairy products to packaged alternatives.

The Erode-based dairy firm, which maintains a significant market presence across Tamil Nadu and Karnataka, reported a sharp rise in its financial performance for the first quarter of FY27. Milky Mist posted a net profit of Rs 65 crore in Q1FY27, up from Rs 7 crore during the corresponding quarter of the previous year. Revenue for the period increased 44% to Rs 973 crore from Rs 678 crore.

According to K Rathnam, Chief Executive Officer of Milky Mist Dairy Food Ltd, paneer will continue to serve as the core product anchoring the brand's business expansion. The company’s paneer sales volumes have been growing at 34% annually, outpacing the broader paneer sector's estimated annual growth rate of 20%.

Milky Mist currently operates a production facility capable of manufacturing approximately 150 tonnes of paneer per day, which the company identifies as the largest single-roof paneer manufacturing capacity in India. With current capacity utilisation hovering between 50% and 60%, the firm has sufficient operational headroom to support future growth without requiring immediate capital expenditure for capacity expansion.

Industry estimates value the overall Indian paneer market at approximately Rs 97,500 crore, with the unorganised sector comprising between 90% and 94% of total production. Organised dairy brands account for only 6% to 7% of the total market, with Milky Mist holding an estimated 20% share of this organised segment.

Market prospects are expected to broaden further as food safety authorities intensify regulatory scrutiny against analogue paneer made using vegetable fats instead of milk fat. Increased enforcement is projected to accelerate the consumer shift toward authentic branded dairy products, potentially raising category volume growth to around 25%.

Broader consumer interest in protein-rich nutrition is also boosting demand across the value-added dairy segment, which is expanding at 15% to 18% overall. In comparison, Milky Mist has recorded value growth between 35% and 38%, alongside increased momentum across other product lines including curd, cheese, ghee, ice creams, yoghurt, sweets, and condensed milk.

A recent assessment by Crisil Ratings noted that the company is undertaking geographic expansion to establish its presence in newer markets across India beyond its established southern strongholds.