Hyderabad | 22 July 2025 – Dodla Dairy Ltd, one of India’s prominent private dairy companies, reported its highest-ever quarterly revenue of ₹1,006.9 crore for Q1 FY26, representing a 10.5% year-on-year growth. However, this topline achievement came with margin compression, as profit before tax (PBT) fell 12.74% to ₹80.97 crore, down from ₹92.79 crore in Q1 FY25.
Financial Highlights: Q1 FY26 vs Q1 FY25
| Key Metric | Q1 FY26 | Q1 FY25 | YoY Change |
|---|---|---|---|
| Revenue | ₹1,006.9 Cr | ₹911.1 Cr | +10.5% |
| EBITDA | ₹82.5 Cr | ₹105.1 Cr | -21.5% |
| EBITDA Margin | 8.2% | 11.5% | – |
| PBT | ₹80.97 Cr | ₹92.79 Cr | -12.7% |
| Milk Procurement Volume | 18.7 LLPD | 17.6 LLPD | +6.2% |
| Milk Sales Volume | 11.9 LLPD | 11.3 LLPD | +4.9% |
| VAP Sales | ₹351.6 Cr | ₹313.9 Cr | +12.0% |
| Bulk Sales | ₹57.72 Cr | ₹35.49 Cr | +62.6% |
Comparison with Previous Quarter (Q4 FY25)
In Q4 FY25, Dodla Dairy reported revenue of ₹922.1 crore, with an EBITDA of ₹87.4 crore and Pa BT of ₹88.3 crore. The current quarter reflects:
- Higher topline sequentially (+9.2%)
- Lower EBITDA (-5.6% QoQ)
- Slight dip in PBT (-8.3% QoQ)
This suggests that while revenue growth is steady, margin pressures persist.
Value-Added Products and Africa Business Fuel Revenue
Value-Added Product (VAP) sales — comprising items like curd, lassi, ice cream, paneer, and doodh peda — continued to drive revenue, growing by 12% YoY to ₹351.6 crore.
Dodla’s Africa business also performed well, with 26.9% YoY revenue growth, aided by the ramp-up of the new Kenya plant. However, the focus on market penetration through strategic pricing led to lower margins.
Challenges: Short Summer Impacts VAP, Procurement Costs Rise
India’s shorter-than-usual summer impacted the sales of temperature-sensitive products, such as lassi, curd, and ice cream. Additionally, the company faced elevated milk procurement costs, both domestically and in Africa.
Despite these challenges, milk procurement rose 6.2% YoY to 18.7 LLPD, indicating a healthy supply chain, and milk sales improved to 11.9 LLPD.
Bright Spot: Orgafeed Business Delivers Margin Boost
Dodla’s Orgafeed segment, which sells dairy-based feed and nutrition products, posted strong results:
- Revenue up 29.4% YoY to ₹41.1 crore
- EBITDA up 84.4% YoY, with a margin of 17.6%
This business line continues to be a high-margin contributor, helping offset pressure in other verticals.
Outlook: Focus on Market Penetration, Premiumization
Despite the dip in profitability, Dodla Dairy remains focused on long-term growth through:
- Expanding Africa operations, particularly in Kenya and Uganda
- Increasing contribution of value-added and branded products
- Improving margin sustainability via cost controls and product mix optimisation.
