Market Brief: Milky Mist Strategic Expansion & IPO Outlook Indian dairy major Milky Mist is moving forward with its ₹2,035 crore initial public offering despite recent global market fluctuations. The company received regulatory approval in October 2025 and aims to complete the listing before its clearance expires in October 2026. This move comes as India solidifies its position as the world's largest milk producer, with national output reaching 247.87 million tonnes for the 2024-25 period. The IPO structure includes a fresh issue of ₹1,785 crore and an offer for sale of ₹250 crore. The company has dedicated ₹750 crore of the proceeds to debt repayment, addressing a debt-to-equity ratio that stood at 4.20 as of March 2025. Remaining funds are earmarked for expanding the Perundurai manufacturing facility and deploying 55,000 new cooling units to strengthen its cold-chain retail presence. Milky Mist reports a strong growth trajectory with a 29.8% revenue CAGR over the last three fiscal years. Revenue for FY25 reached ₹2,349.5 crore, up from ₹1,821.6 crore the previous year. Profitability has seen a significant surge, with net profit jumping 2.4 times to reach ₹46.1 crore in FY25. The company currently maintains an EBITDA margin of 13.2%, driven by a shift toward high-margin value-added products. Product performance highlights: - Paneer remains the flagship product, generating ₹694 crore in FY25 revenue. - Cheese and curd followed with contributions of ₹408 crore and ₹370 crore respectively. - Ice cream emerged as the fastest-growing segment, recording a 294% revenue increase. The brand holds a 17% market share in India's organized packaged paneer segment. While operations are heavily concentrated in South India—drawing 97% of raw milk from 67,615 farmers in Tamil Nadu, Karnataka, and Andhra Pradesh—the company is now targeting 49% to 55% growth in Western and Northern Indian markets. Future strategy focuses on premiumization and digital integration. Milky Mist expects quick-commerce and e-commerce platforms to contribute 15% of total revenue within three years. Additionally, the company is expanding its global footprint, with exports to 15 countries currently accounting for 4% of total sales. New high-protein offerings, including Greek yogurt and specialized cottage cheese, are being launched to capture the rising demand for health-focused nutrition in urban centers.