Capacity addition

September 21, 2026 Compliance Department, Compliance Department, BSE Limited, National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Tower, Exchange Plaza, Dalal Street, Fort, Plot No. C/1, G-Block, Mumbai - 400 001 Bandra Kurla Complex, Bandra (E), Mumbai - 400 051 Scrip Code: 539889 NSE Symbol: PARAGMILK Dear Sir/Madam, Sub: Press Release and Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Proposed Expansion of Paneer Manufacturing Capacity Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI LODR Regulations"), we wish to inform that the Company proposes to augment its paneer manufacturing capacity by approximately 60 MT per day through brownfield and greenfield expansion initiatives. Upon completion of the proposed expansion, the Company's aggregate paneer manufacturing capacity is expected to increase from 20 MT per day to approximately 80 MT per day. In this regard, please find enclosed a copy of the Press Release titled "Parag Milk Foods to scale up Paneer capacity 4X to 80 MT/Day" as Annexure 1. Further, the disclosure containing the particulars of the aforesaid proposed capacity addition, as required under Regulation 30 of the SEBI LODR Regulations read with the SEBI Master Circular dated January 30, 2026, is enclosed as Annexure 2. The aforesaid information is also being made available on the Company's website at www.paragmilkfoods.com. Kindly take the same on record. Yours faithfully, For Parag Milk Foods Limited Virendra Varma Company Secretary and Compliance Officer FCS No. 10520 Encl: As above. Parag Milk Foods to scale up Paneer capacity 4X to 80 MT/Day Plans to invest ₹100 Crore to add a new 60 MT/day facility, taking total paneer capacity from existing 20 MT/day to 80 MT/day; expansion to strengthen flagship category with pan-India distribution Mumbai, September 21, 2026: Parag Milk Foods Limited, one of India’s leading dairy and nutrition companies, plans to invest approximately ₹100 crore to expand its paneer manufacturing capacity from existing 20 MT/day to 80 MT/day at Manchar (Maharashtra) and Palamaner (Andhra Pradesh). The expanded facilities will produce both regular and high protein paneer and are expected to be commissioned by June 2027. Value added products contribute more than 90% of the company’s turnover and Paneer is one of its flagship categories which is growing by 28% over the last two years. The investment builds on Parag’s technology-led innovation in fresh paneer. Its branded paneer offers a shelf life of up to 75 days without preservatives, enabled by its advanced manufacturing and packaging technology. Paneer is one of the largest categories in Indian dairy. Demand is shifting from unorganised to organised players, which account for only about 5-6% of the category today, as consumers look for higher and more consistent quality. To capitalise on this shift, Parag is quadrupling its capacity. This will allow the company to strengthen its national footprint across both its standard and high-protein ranges. Parag will use its manufacturing capabilities and pan-India distribution network to make paneer more widely available across General Trade, Modern Trade, Quick Commerce, E- commerce and HoReCa. The combination of manufacturing scale and packaging innovation will support distribution of branded paneer over longer distances and across channels, while maintaining the freshness and quality consumers expect. The investment is part of Parag's strategy to build scale in high-growth value-added categories, strengthen its flagship brands and create differentiated products through innovation. It also responds to rising consumer preference for branded, packaged and standardised products. Rahul Kumar Srivastava, COO, Parag Milk Foods Limited, said: “Paneer is an important part of the Indian consumer’s diet. We have the manufacturing excellence to maintain the freshness and quality of paneer over an extended period. We are pleased to announce our plan to add 60 MT/day of capacity, taking our overall paneer capacity from 20 MT/day to 80 MT/day. This scale-up will allow us to expand our pan-India distribution and make our paneer available across distribution channels. We see a significant opportunity to strengthen our position in value-added dairy through innovation, scale and wider consumer access.” According to IMARC report, the Indian paneer market was valued at ₹73,140 crore in 2025 and is projected to reach ₹2.15 lakh crore by 2034, growing at a CAGR of 12.34% between 2026 and 2034. Growth is driven by rising demand for protein-rich foods, a growing preference for branded and packaged dairy, organised retail, and the expansion of e- commerce and quick-commerce channels. About Parag Milk Foods Ltd: Parag Milk Foods Limited, established in 1992, is the largest private dairy FMCG Company with a Pan India presence. The Company’s manufacturing facilities with in-house technology which are strategically located at Manchar and Thorandale in Maharashtra and Palamner in Andhra Pradesh. The Company sells 100% cow’s milk products that are healthy and nutritious. Integrated business model and strong R&D capabilities have helped the Company emerge as a leader in innovation. The Company’s dairy farm, Bhagyalaxmi, houses more than 5,000 cows, with an automated milking process. The Company offers traditional products like Ghee, Dahi, Paneer, Liquid Milk, etc. under brand “Gowardhan”, and products like Cheese, UHT Milk, Buttermilk, Lassi, Flavoured Milk Shakes, etc. under the brand name “Go”. “Pride of Cows”, the flagship brand of the Company based on proposition of Farm to Home – single origin concept targeting customers seeking premium quality dairy products. The Company is also present in Whey Protein based sports nutrition under the brand Avvatar – India’s 1st 100% vegetarian whey protein. The Company’s goal is to become the global nutrition provider and become the largest dairy FMCG Company that emphasizes health and nutrition to consumers through quality and innovation. For more information, please connect with Mr. Brian D’penha - 02243005555 / brian.dpenha@parag.com Annexure 2 Disclosure under Regulation 30 read with Para B of Part A of Schedule III of Listing Regulations Sr. No. Particulars Details 1. Existing capacity 20 MT/day 2. Existing capacity utilisation The existing capacity is close to full utilisation. 3. Proposed capacity addition Additional 60 MT/day (approx.) resulting in aggregate paneer manufacturing capacity of 80 MT/day (approx.) 4. Period within which the proposed Financial Year 2027-28 capacity is to be added 5. Investment required ₹100 Crore (approx.) 6. Mode of financing Internal accruals/Borrowings/Lease 7. Rationale The investment is being undertaken to support the Company’s future business plans and capacity requirements due to growing market demand. Note: The Date and Time of Occurrence of Event is September 21, 2026 at 7:29 p.m. (IST)