Dodla Dairy Limited announced its unaudited financial results for Q2 and H1 FY27 ended 30 September 2026.

Consolidated Financial Performance (Q2 FY27)

  • Revenue: ₹1,196.0 Crores, up 17.4% YoY from ₹1,018.8 Crores in Q2FY26
  • EBITDA: ₹64.1 Crores, down 30.9% YoY from ₹92.8 Crores
  • EBITDA Margin: 5.4%, down from 9.11% in Q2FY26
  • PAT: ₹36.6 Crores, down 44.3% YoY from ₹65.7 Crores
  • PAT Margin: 3.1%, down from 6.4%
  • EPS: ₹6.1, down from ₹10.9 in Q2FY26

Consolidated Financial Performance (H1 FY27)

  • Revenue: ₹2,394.0 Crores, up 18.2% YoY from ₹2,025.7 Crores in H1FY26
  • EBITDA: ₹129.0 Crores, down 26.4% YoY from ₹175.32 Crores
  • EBITDA Margin: 5.4%, down from 8.7%
  • PAT: ₹77.2 Crores, down 39.9% YoY from ₹128.5 Crores
  • PAT Margin: 3.2%, down from 6.3%
  • EPS: ₹12.8, down from ₹21.3 in H1FY26

Operational Highlights - Q2 FY27

  • Milk Procurement: Record 21.3 LLPD (Lakh Liters Per Day), up 9.3% YoY
  • Milk Sales: 14.2 LLPD, up 8.4% YoY
  • Value Added Products (VAP) Sales: ₹327.0 Crores (27.3% of total sales)
  • VAP contribution excluding bulk sale was 27.3% compared to 26.0% in Q2FY26
  • No bulk sales for SMP and butter in Q2FY27 (compared to ₹28.3 Crores in Q2FY26)
  • Curd sales volume grew 23.0% to 444.7 MTPD (Metric Tonnes Per Day)
  • Demand for high-margin summer products (ice cream, flavored milk, buttermilk, lassi) moderated sequentially due to seasonal factors

Milk Price Impact

  • Realization Price: ₹61.9 per liter, up 8.0% YoY and 4.2% QoQ
  • Procurement Price: ₹43.2 per liter, up 15.7% YoY and 5.3% QoQ
  • Procurement costs increased faster than realization prices, keeping gross margins under pressure
  • Price hike of ₹2.5 per liter implemented towards end of Q2FY27
  • Pricing strategy in line with overall industry trend

Segment Performance

India Dairy Business:

  • Milk procurement prices rose faster than realization prices
  • Festive demand shifted to Q3 FY27 compared to Q2 FY26
  • Overheads cost per liter increased due to inflation, new labor code, and geopolitical issues
  • Packing material costs increased 41.6% YoY driven by geopolitical tensions and product mix changes

OSAM Business:

  • Healthy revenue driven by milk volumes
  • VAP sales contribution remained low due to seasonal factors
  • Higher procurement prices and inflationary cost environment pressured gross profit margins

Africa Business:

  • Revenue growth of 55.9% YoY
  • Milk sales increased 68.5% supported by strategic pricing initiatives in Kenya
  • EBITDA: ₹18.9 Crores

Orgafeed Business:

  • Revenue growth of 39.9% YoY
  • EBITDA margin: 5.9%
  • Raw material prices grew faster than selling prices, leading to margin compression

Recent Corporate Development

The Board of Directors approved a proposal to establish a Joint Venture company in India in collaboration with Meadow India Holdings Limited (MIHL):

  • Equity participation: 40% by Dodla Dairy, 60% by Meadow India Holdings Limited
  • Focus: Marketing and selling high-quality dairy ingredients to B2B market in India
  • Subject to execution of Joint Venture Agreement, completion of formalities, and receipt of applicable regulatory and statutory approvals

Management Commentary

Mr. Dodla Sunil Reddy, Managing Director, commented:

  • Revenue growth driven by volume growth and improved realization supported by ₹2.5 per liter price increase
  • Milk availability remained healthy, enabling adequate inventory procurement
  • Milk procurement costs remained elevated, pressuring gross margins
  • VAP portfolio recorded revenue of ₹327 crore, registering 11.7% YoY growth
  • Expect festive season in Q3 to boost value-added products like ghee, sweets, flavored milk
  • Positive momentum witnessed in current month
  • Operating environment remains dynamic with elevated raw milk prices and inflationary pressures from geopolitical uncertainties
  • Focus remains on strengthening procurement and distribution capabilities, driving operational efficiencies, expanding VAP portfolio, and executing expansion initiatives