Date and Time: The call was held on Monday, 27 July 2026. A specific time was not mentioned in the transcript.
Purpose: The event was held to discuss the financial and operational performance for the quarter ended 30 June 2026 (Q1 FY27).
Earnings Timing: The meeting was held after the earnings announcement, as management referred to results being uploaded on exchanges.
Management Participants: Mr. Dodla Sunil Reddy (Managing Director), Mr. B.V.K. Reddy (Chief Executive Officer), and Mr. Murali Mohan Raju (Chief Financial Officer). The moderator and representatives from Investor Relations Advisors, SGA, were also present.
Availability of Materials: The financial results and an investor presentation were uploaded on the stock exchanges and the company website prior to the call. The audio recording of the call was uploaded to the stock exchange on July 27, 2026, and is the definitive record in case of any discrepancy with the transcript.
UPSI Statement: The call contained forward-looking statements but did not include a specific disclaimer stating that no Unpublished Price Sensitive Information (UPSI) would be shared. The standard forward-looking statement caveat was provided by the moderator.
Financial Period Discussed: Q1 FY27 (Quarter ended 30 June 2026).
Revenue: Consolidated revenue from operations stood at ₹1,198 crores, a 19% year-on-year (YoY) increase and the highest-ever quarterly revenue.
Profitability: EBITDA was ₹65 crores with a margin of 5.4%. Profit After Tax (PAT) was ₹41 crores with a net profit margin of 3.4%.
Procurement: Record milk procurement of approximately 21.1 lakh liters per day, a 13% YoY increase.
Margin Pressure: The decline in EBITDA and PAT YoY was attributed to high milk procurement costs (avg. ₹41.3/liter vs. ₹37.4/liter in Q1 FY26) that were not fully passed on to consumers. The spread between realization and procurement cost narrowed to ₹18.1/liter from ₹19.8/liter a year ago.
Value-Added Products (VAP): Sales reached a record ₹414.7 crores, registering 17.6% YoY growth. On a like-to-like basis (excluding bulk sales), VAP growth was 40.6% YoY. Curd and curd-based products saw 41.4% growth.
Africa Business: Delivered record revenue of ₹154 crores, a 45.6% YoY growth. EBITDA was ₹24 crores, up 74% YoY. Market share is ~50% in Uganda's long-life milk and yogurt category.
Guidance & Outlook: Management expects a gradual recovery in margins from Q2 FY27 onwards, confident of achieving 7-8% EBITDA margins for the full year. Volume growth guidance for India is maintained at 8-10% and revenue growth at ~15% for the consolidated entity.
Expansion: The Maharashtra Greenfield project is on track. Strategy for Eastern India expansion (Bihar, Jharkhand) is being revisited for capital effectiveness.
Investment: The Board approved a primary investment of ₹11.65 crores for a ~2% stake in Sids Farm Private Limited, a premium D2C dairy brand.
Balance Sheet: The company remains net debt-free with approx. ₹689 crores of cash and investments, funding its ₹590 crores capex program.
Additional Notes
Attachment: The document submitted to the exchanges was the enclosed transcript of the earnings call.
Financial Data: This announcement itself did not contain financial data; it was an intimation enclosing the transcript of a call where detailed financial data was discussed.
Compliance: The submission was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
