Milky Mist beats FY26 growth estimates, IPO on track, says CEO

Milky Mist has beaten its own revenue growth estimates in FY26 driven by broad-based growth across its ice creams, beverages, paneer, cheese and other categories and a stand-out performance of the emerging protein offerings, K. Rathnam, CEO and Whole-time Director, Milky Mist Dairy Food, told businessline.

The ballpark figure, what we estimated was 33 per cent top line growth. And we have achieved a 34 per cent top line growth. Whatever the estimates we did at the beginning of the year, we are able to exceed the target, he said. Being a complete value-added dairy company, and having the products starting from breakfast to dinner table, we are in a better position despite the marco situation and see a bright future, he observed.

Founded in Erode, Tamil Nadu, Milky Mist is one of the leading dairy brands in India, producing value-added dairy products like paneer, cheese, yogurt, curd, ice cream, butter and ghee. It does not sell milk, enabling higher margins and strong positioning akin to FMCG companies.

IPO

The dairy value-add company obtained approval from SEBI for its ₹2,035 crore IPO in October 2025, and says they are evaluating the market conditions and looking for the “right opportunity” to kick off the listing. The IPO is definitely on track, he adds, noting that the SEBI approval expires in October this year. The offer comprises a fresh issue of up to ₹1,785 crore and an offer for sale of up to ₹250 crore by promoter shareholders.

Summer demand

An early and intense summer has set the demand for ice creams and beverages going up already, at a rate higher than last summer, The 15-20 per cent increase in packaging material cost may impact the bottom-line marginally, he added. “More and more demand is coming for our high protein categories like Greek yogurt, high-protein paneer and high-protein cheddar among others. In protein offerings, we have been growing 100 per cent as compared to the last year,” he added.

Manufacturing plans

As for capacity planning, Rathnam notes that the company’s efforts to expand production in the last two years has now become operational, and there is still a large headroom for capacity expansion. “Our existing plant (in TN) can do three times or three to four times of revenue what we have achieved now in FY26,” he said.

The company, which recently signed an investment MoU with the Maharashtra government, has now taken the possession of a land parcel at Baramati, and the facility is in planning stage. “25-30 per cent of our revenue comes from non-South regions, so it makes sense for us to have decentralised, manufacturing operations,” he said.

Quick Commerce - beyond the hype

As for the bump in business from the quick commerce wave, Rathnam says that quick commerce is now “a way of life” in India. “It’s not a hype, but it’s a reality; they are doing well,” he said. The channel now contributes 10 per cent of revenue for Milky Mist.

Published on April 9, 2026