GRB Dairy Foods Private Limited increased operating income in the year ended March 31, 2026, but lower profit and Crisil’s cost and regional-risk warnings point to pressures behind its expansion.
Crisil Ratings’ Aug. 24 assessment lists Rs 1,287 crore in operating income and Rs 67 crore in profit after tax for the year. Its figures for the prior year were Rs 1,081 crore and Rs 75 crore, respectively.
Founder G.R. Balasubramaniam said in a March interview with YourStory that his revenue target was Rs 1,400 crore “this year.” The interview did not specify whether he meant a fiscal or calendar year, so the target is distinct from the fiscal 2026 operating income cited by Crisil.
In the same interview, Balasubramaniam recalled leaving his brother-in-law’s butter business in 1984 with Rs 6,000 in savings after a misunderstanding. The outlet reported that he paid Rs 3,000 in advance rent and later used about Rs 50,000 from a chit fund to buy butter. His early deliveries in Bengaluru totaled 75 kilograms of butter a month, according to the interview.
Crisil says Balasubramaniam and his wife, B. Mahalakshmi, began the business as a partnership in Hosur, Tamil Nadu, in 1984. The firm adopted its current name as a private limited company in 2001. GRB’s website says it exports ghee and dairy products to more than 40 countries.
Crisil estimates that South India generates 80% to 90% of the company’s revenue and cites strong competition in the region. It also flags butter costs, which move with raw milk prices, as a risk for ghee production; the agency says passing higher costs on to customers can be difficult. Crisil points to past margin pressure when drought-like conditions sharply raised input prices.
The assessment lists Rs 81 crore in rated bank facilities and says utilization was about 34% over the 12 months through May 2026. It says past capital spending was funded mainly through internal accruals. Crisil lists operating margins of 11% to 12% as an upward rating sensitivity and cash accrual below Rs 80 crore as a downward sensitivity.
