Dodla Dairy Achieves 3.6% Profit Increase Amid Strategic Changes

Dodla Dairy, a prominent dairy company in India, reported a 3.6% year-on-year increase in consolidated net profit (PAT) for the second quarter of Fiscal Year 2026, reaching ₹65.7 crore. This growth was accompanied by a 2.1% increase in revenue from operations, totaling ₹1,018.8 crore compared to the previous year's same period.

The company's operational performance was strong, with milk procurement volume rising 13.4% year-on-year to 19.5 lakh litres per day (LLPD), and average milk sales volume increasing 12.6% to 13.1 LLPD. Despite these positive figures, Dodla Dairy's EBITDA saw a 3.6% decline to ₹92.8 crore from ₹96.3 crore in Q2 FY25. This was attributed to the recent acquisition of OSAM Dairy, which operates at lower margins, impacting overall profitability.

The company's strategic shift towards high-margin value-added products such as curd, ghee, lassi, flavored milk, and ice cream has been significant. This reorientation of the product mix reduced reliance on bulk sales and contributed to a strong improvement in gross profit.

Dodla Dairy has maintained a Compound Annual Growth Rate (CAGR) above 15% in both revenue and EBITDA over the last two years, with an even stronger CAGR of over 22% in PAT. The company’s non-Indian operations, particularly in Africa, continue to grow, although margins in Kenya are under pressure due to strategic pricing initiatives.

The company operates extensively across India, with procurement in 8 states, products available in 15 states, and a network of 236 milk chilling centers/plants. Following the Q2 results announcement, Dodla Dairy's stock experienced a slight decrease, trading at ₹1251.55 on the BSE.