Hyderabad, May 2025 ā Riding on a robust uptick in operational revenue and disciplined cost management, Dodla Dairy Limited has reported a net profit of ā¹2,599.30 million for the financial year ended March 31, 2025, marking a 47% jump year-on-year.
The company, which operates across southern and eastern India and in select African markets, continues to strengthen its position in the competitive Indian dairy sectorālargely through a focus on value-added dairy products (VADP) and lean, tech-enabled operations.
š FY25 Financial Performance Overview
Dodla's audited consolidated results underscore its strongest financial year to date:
| Financial Metric | FY25 (ā¹ Mn) | FY24 (ā¹ Mn) | YoY Change |
|---|---|---|---|
| Total Income | ā¹37,733.59 | ā¹31,528.79 | +19.7% |
| Total Expenses | ā¹34,175.82 | ā¹29,090.87 | +17.5% |
| Profit Before Tax | ā¹3,557.78 | ā¹2,437.92 | +46% |
| Net Profit (After Tax) | ā¹2,599.30 | ā¹1,957.37 | +47% |
| Q4 FY25 Net Profit | ā¹679.65 | ā¹468.31 (Q4 FY24) | +45.1% |
This marks a significant milestone for the company, especially against rising raw milk procurement prices and volatile input costs across the sector.
š§® Q4 FY25: Strong Finish to a High-Growth Year
For the JanuaryāMarch 2025 quarter, Dodla reported:
- Total revenue of ā¹9,354.15 million, up from ā¹7,952.45 million in Q4 FY24
- Total expenses of ā¹8,451.29 million, reflecting sound cost discipline
- Profit before tax at ā¹902.86 million, compared to ā¹641.42 million a year ago
- Net profit of ā¹679.65 million, the companyās highest-ever Q4 earnings
These figures suggest seasonal demand tailwinds in Q4 and efficient inventory turnover, especially in liquid milk and fast-moving packaged products.
š§ Value-Added Products (VAP) Driving Margins
Dodlaās strategic pivot toward value-added segmentsāincluding paneer, ghee, UHT milk, flavoured milk, and curdācontinues to pay off.
- VAPs generally offer gross margins 2xā3x higher than liquid milk
- Improved distribution across modern trade, quick-commerce, and export channels has bolstered growth
- The company has also expanded processing capacity in Andhra Pradesh and Tamil Nadu, optimising product mix by region
āWith input volatility stabilizing and demand for VAPs rising in urban and Tier-II markets, Dodla has captured margin growth without overextending cost structures,ā said a dairy sector analyst.
š Operational Efficiency: A Key Differentiator
Despite industry-wide challenges such as:
- Fluctuating fodder and energy prices
- Rising transportation costs
- Farmer price negotiations for raw milk
Dodla maintained cost increases at just +17.5%, lower than its income growth rate. This shows robust cost-to-income leverage.
Contributing factors:
- Streamlined procurement networks with cooperative milk producers
- Energy-efficient chilling and processing infrastructure
- Investments in logistics tech and cold-chain tracking systems
š Global Presence, Local Strength
Dodlaās African operations (Uganda and Kenya) remain a niche but growing part of its portfolio, contributing to foreign currency revenues and product diversification. However, the companyās core strength lies in South India, where it maintains a strong presence in Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu.
š§ Looking Ahead: A Stable Outlook for FY26
With a sharp rise in profitability and consistent volume growth, Dodla Dairy is entering FY26 on strong footing. Key trends supporting continued expansion:
- Indiaās rising per capita dairy consumption in value-added formats
- Government support for dairy cooperatives and rural logistics
- Increased consumer preference for fortified, clean-label dairy products
The companyās emphasis on farmer partnerships, food safety, and brand trust positions it well to tap into both urban growth and rural consolidation.
