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India being a vegetarian country, milk is the major source of dietary bio-energy, but majority of animals are routinely being evaluated on the basis of their milk producing ability. The present study was aimed to come up with a sire evaluation methodology based on first lactation Fat Energy Corrected Milk Yield (FBE) in order to obtain an accurate and unbiased estimate of breeding value of Mehsana buffalo bulls and ranking them on the basis of their daughter's performance for future herd improvement. Data for the present study included 7825 she buffaloes in their first lactations, extended over a period of 25 years (1989 to 2013), from field progeny testing programme of Dudhsagar Research and Development Association (DURDA), Dudhsagar Dairy, Mehsana, Gujarat. The data were classified into different subclasses based on period, season, cluster and age at first calving group. The average breeding values of Mehsana buffalo bulls evaluated for FBE by least squares method (LSM), best linear unbiased prediction sire model (BLUP-SM) and best linear unbiased prediction animal model (BLUP-AM) methods were 1215.89, 1185.7 and 1185.7 kcal, respectively. BLUP-AM method had lowest error variance as compared to LSM and BLUP-SM methods of sire evaluation. This indicated that BLUP-AM was most efficient method.