$25\%$ of $40 = \frac{25}{100} \times 40 = 10.$
So, $10$ litres of water and $30$ litres of milk out of $40$ litres of mixture.
$10$ more litres of water is added. So, we have $30$ litres of milk out of $40+10 = 50$ litres of mixture
$\implies \frac{30}{50}\times 100 = 60\%$