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1 — At a Glance
Milkfood Ltd closed FY26 with reported profit after tax of ₹44.29 crore — roughly ten times the ₹4.52 crore it earned in FY25, and the kind of jump that usually means something either went very right or simply went very one-off. The operating profit for the same year was ₹6 crore on revenue of ₹412.93 crore, an operating margin of about 2%. The gap between those two numbers is the entire entry.
Other Income for FY26 came in at ₹71.66 crore — larger than operating profit by a factor of roughly twelve. Per the filing, the bulk is a ₹47.6 crore gain on the sale of the Moradabad plant property plus a ₹31.97 crore land revaluation at Patiala. The dairy business itself shrank: revenue fell 7.8% year on year.
Two flags sit beside the headline. The statutory auditor issued a modified (qualified) opinion — its first such qualification — and the company’s own impact statement shows that adjusting for those qualifications cuts reported PAT from ₹44.29 crore to ₹9.81 crore. Separately, a CGST demand of ₹18.96 crore with an equal penalty sits in contingent liabilities.
A profit that needs an asterisk is still a profit. Whether it is a business is the question the operating line keeps asking.
2 — Introduction
Milkfood was incorporated in 1973 and is part of the Jagatjit Group of Industries. Per the credit-rating note, it was founded by Mr. Karamjit Jaiswal and built a presence across Delhi, Punjab, and Rajasthan under the “Milkfood” brand. It runs two plants: ghee at Patiala (11,700 MTPA installed) and butter plus skimmed milk powder at Moradabad (5,400 and 12,240 MTPA).
The FY26 story is mostly about what left the building. In March 2026 the company agreed to sell its 20.084-acre Moradabad property to Bareilly Dairies and others for ₹130 crore. That sale runs straight through the FY26 financials — the cash flow shows ₹125.92 crore arriving as investing inflow.
On the financing side, the share count has been busy. A bonus issue added 1.22 crore shares, equity capital moved from ₹5.13 crore to ₹12.19 crore, and in June 2026 the board allotted 12,18,000 ESOP shares, taking paid-up capital to 2,55,96,180 shares. A further board meeting was scheduled for 30 June 2026 to consider a fresh preferential issue of shares or warrants.
Meanwhile Infomerics downgraded the long-term rating to IVR BB+/Negative in November 2025, citing declining revenue and an H1FY26 net loss of ₹8.55 crore.
3 — Business Model: WTF Do They Even Do?
Milkfood makes dairy in two registers. There is the consumer-facing half — Pure Ghee and milk powders sold under the “Milkfood” name across Northern India — and there is the industrial half: Edible Grade Acid Casein and Demineralized Whey Powder, which per the About section feed into chocolates, ice cream, coffee whiteners, infant food, and, delightfully, knitting needles and automobile paint. A company that puts the same protein into both your child’s formula and your car’s bumper has range.
The clientele list is genuinely heavyweight: Nestlé India, Cadbury, ITC, Mother Dairy, Reliance Retail domestically, plus exporters across Europe and Thailand. This is not a fly-by-night operation; it is a fifty-year-old supplier with real institutional buyers.
The problem is what those buyers leave behind. FY26 operating margin was 2%, and the five-year operating profit never cleared ₹28 crore even in its best year (FY19). For a business selling commodity ghee and powder against Amul and cooperatives — which the rating note names as competitors with superior pricing power — the model is thin by design: buy volatile milk, sell standardised fat, keep almost nothing.
The Moradabad plant did job work for Mother Dairy. That plant is now being sold. A model that monetises the factory floor rather than the product on it is a model telling you something about the product on it. Fifty years of brand, and the most profitable transaction of the decade was real estate.
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