Key Financial Figures (Consolidated, Q2 FY27)

  • Revenue from Operations: ₹1,196 crores (17.4% YoY growth)
  • EBITDA: ₹64.1 crores
  • EBITDA Margin: 5.4%
  • PAT: ₹36.6 crores
  • PAT Margin: 3.1%
  • Gross Profit: ₹275.7 crores
  • Gross Margin: 23.1%
  • Employee Expenses: ₹55 crores (10.1% YoY increase)
  • Other Expenses: ₹156.6 crores
  • Depreciation: ₹23.6 crores
  • Other Income: ₹10.9 crores

Key Financial Figures (H1 FY27)

  • Revenue from Operations: ₹2,394 crores (18.2% YoY growth)
  • PAT: ₹77.2 crores
  • PAT Margin: 3.2%
  • Deferred Tax Charge: ₹5.77 crores (includes ₹4.6 crores in CDDL for first-time deferred tax liability recognition and ₹1.17 crores in HR Food due to tax rate change)
  • Capital Expenditure: ₹66 crores (primarily for Maharashtra expansion)
  • Cash & Bank Balance (as of September 2026): ₹659.4 crores
  • Inventory (as of September 2026): ₹232 crores (includes ₹76 crores buildup in H1 for SMP and butter)

Operational Highlights

  • Milk Procurement: 21.3 lakh liters per day (9.3% YoY growth)
  • Milk Procurement Cost: ₹43.2 per liter (vs. ₹41.0 in Q1 FY27 and ₹37.3 in Q2 FY26)
  • Milk Sales Realization: ₹61.9 per liter (vs. ₹59.4 in Q1 FY27 and ₹57.3 in Q2 FY26)
  • Spread (Realization - Procurement): ₹18.7 per liter (narrowed from ₹20.0 in Q2 FY26)
  • Milk Sales Volume: 14.2 lakh liters per day (8.4% YoY growth)
  • Value-Added Products (VAP) Revenue: ₹327 crores (11.7% YoY growth)
  • Curd & curd-based products: 444.7 metric tons per day (23% YoY volume growth)
  • Paneer: 64% volume growth (approx. 2.5 tons per day increase)
  • Lassi: 163% volume growth
  • Consolidated Realization: ₹65.06 per liter
  • India Realization: ₹63.59 per liter
  • Africa Realization: ₹73.14 per liter
  • VAP Realization: ₹66.46 per liter

Segment Performance

  • Africa Business: Revenue of ₹179 crores (56% YoY growth), driven by 68.5% increase in milk sales.
  • OSAM Dairy: Revenue of ₹82.37 crores, milk sales volume of 1.43 lakh liters per day, EBITDA margin of 1% for the quarter.
  • Orgafeed Business: Revenue growth of 40% YoY, though margins impacted by higher raw material costs.

Strategic Updates & Joint Venture

  • The Board approved a proposal to establish a joint venture in India with Meadow India Holdings Limited.
  • Equity stake: Dodla Dairy (40%), Meadow India Holdings (60%).
  • The JV will focus on marketing and selling high-quality dairy ingredients to the B2B market.
  • The proposal is subject to execution of the JV agreement, completion of formalities, and receipt of applicable regulatory/statutory approvals.
  • Initial investment: Dodla to invest ₹1 crore for its 40% stake.

Expansion Projects

  • Maharashtra Plant: Liquid milk operations to commence March-April 2027; powder operations by September 2027.
  • Africa Greenfield Expansion (Uganda): Civil work commenced; targeting operations by beginning of FY28.

Management Commentary & Outlook

  • Price increase of ₹2.5 per liter implemented in September 2026; full impact expected in Q3 FY27.
  • Margins were compressed due to elevated raw milk prices, inflationary pressure on logistics, packaging, and other overheads.
  • Management expects Q3 FY27 EBITDA margins to improve to 7.5-8%.
  • Procurement costs assumed to have peaked; no significant further increases anticipated in the near term.
  • Focus remains on strengthening procurement and distribution, driving operational efficiencies, and expanding VAP portfolio.

Capital Structure & Liquidity

  • Healthy cash balance of ₹659.4 crores as of September 2026 is sufficient for future capex requirements.
  • No significant change to overall capex plan of ~₹600 crores (may see 5-10% increase due to inflation).

Q&A Highlights

  • Gross margin trend has been firm at ~23% despite raw material inflation.
  • OSAM margins were muted at 1% (vs. 2.6% in previous quarter) due to focus on stabilization over margin expansion.
  • Procurement by state: Andhra Pradesh (4.76 lakh LPD), Karnataka (5.1 lakh LPD), Maharashtra (2.99 lakh LPD), Tamil Nadu (4.25 lakh LPD), Telangana (0.45 lakh LPD).
  • Buffalo milk proportion is declining year-on-year across India in favor of cow milk.
  • VAP revenue breakdown (India): Curd/yogurt/lassi/buttermilk (₹251 crores), ice cream (₹11 crores), flavored milk (₹13 crores), paneer (₹21 crores), sweets (₹6.6 crores), ghee/butter (₹22.1 crores).