Dodla Dairy (DODLA) investor relations material

Executive summary

• Achieved highest-ever quarterly revenue of INR 1,198 crore in Q1 FY27, up 19% YoY, with record milk procurement of 21.1 lakh liters per day and strong VAP sales growth; milk sales volume up 14.5% YoY.

• EBITDA stood at INR 65 crore (margin 5.4%), and PAT at INR 41 crore (margin 3.4%), both lower YoY due to elevated procurement costs not fully passed to consumers.

• Africa business delivered record revenues of INR 154 crore, up 45.6% YoY, and EBITDA of INR 24 crore, up 74%, driven by 52.3% YoY milk sales growth.

• Board approved INR 11.65 crore investment for a 2% stake in Sid's Farm, a premium D2C dairy brand.

• Approved unaudited standalone and consolidated financial results for Q1 FY27, with unmodified limited review reports from statutory auditors.

Financial highlights

• Revenue from operations: INR 1,198 crore (+19% YoY); gross profit: INR 278 crore (gross margin 23.2% vs 25.8% YoY).

• EBITDA: INR 65 crore (margin 5.4% vs 8.2% YoY); net profit: INR 41 crore (net margin 3.4%).

• Employee expenses: INR 56 crore (+18% YoY), mainly due to OSAM addition and higher minimum wage costs.

• Packing material cost up 48% YoY, now 5.6% of revenue, driven by geopolitical tensions and product mix changes.

• Remain net debt-free with INR 689 crore cash/investments, funding INR 590 crore CapEx and expansions.

Outlook and guidance

• Expect gradual margin recovery from Q2 onwards as procurement costs stabilize and price hikes are passed to consumers.

• Maintain guidance of 10% volume growth and 15% revenue growth for FY27.

• Confident in sustaining 7%-8% EBITDA margins over the next 2-3 years, viewing current margin pressure as cyclical.

• Expansion plans underway to increase capacity, geographic footprint, and VAP mix to enhance margins.

• No major ice cream expansion planned currently; will reassess after observing current year trends.