🥛 Dodla Dairy Reports Record Revenue Despite Profit Pressure in Q1 FY27
Dodla Dairy Ltd has reported record consolidated revenue of ₹1,197.94 crore for the quarter ended June 30, 2026, reflecting strong business growth despite a decline in profitability. The company attributed lower earnings to higher milk procurement prices and a strategic inventory buildup aimed at supporting future demand.
📈 Revenue Reaches Record High
Dodla Dairy posted a 19% increase in revenue, reaching its highest-ever quarterly sales. However, consolidated net profit declined to ₹40.64 crore, down around 42% sequentially from ₹69.8 crore recorded in the previous quarter.
According to the company, increased raw milk procurement costs and planned inventory accumulation weighed on margins during the quarter.
🧀 Value-Added Products Drive Growth
Managing Director Dodla Sunil Reddy stated that the inventory strategy aligns with broader industry trends and expects milk procurement prices to begin normalising from the second quarter.
Extended summer conditions significantly boosted demand for the company’s value-added products (VAP), including:
- 🥣 Curd
- 🥛 Buttermilk
- 🍶 Lassi
- 🍦 Ice Cream
These products contributed nearly one-third of Dodla Dairy’s total sales, delivering record performance during the quarter.
🚜 Milk Procurement Hits New High
Dodla Dairy achieved its highest-ever milk procurement volume of 21.1 lakh litres per day (LLPD), representing a 13% year-on-year increase.
The company also reported improved operational efficiency within its procurement business, helping strengthen operating margins compared to the previous financial year.
💼 Rising Costs Impact Margins
The company recorded EBITDA of ₹64.9 crore, while rising operating expenses affected overall profitability.
Key cost pressures included:
- 👨💼 Higher employee expenses following revised labour regulations for off-roll workers
- 🥛 Elevated milk procurement prices
- 📦 Strategic inventory buildup for future demand
Employee costs increased to ₹55.7 crore, reflecting both sequential and annual growth.
🌍 Africa Business Shows Strong Momentum
Dodla Dairy’s international operations continued to perform strongly.
The Africa business recorded 45.6% year-on-year revenue growth, supported by an impressive 52.3% increase in milk sales, highlighting expanding demand across its overseas markets.
🤝 Investment in Sids Farm
The Board of Directors also approved a primary investment of approximately ₹11.6 crore to acquire a 2% stake in Sids Farm, a direct-to-consumer (D2C) dairy brand, strengthening Dodla Dairy’s presence in the premium dairy segment.
