Dodla Dairy (DODLA) Q1 25/26 earnings summary

Executive summary

• Achieved record quarterly revenue of ₹10,069 million in Q1 FY26, up 10.5% year-over-year, with EBITDA margin at 8.2% and PAT margin at 6.2%.

• Record milk procurement of 18.7 LLPD, a 6.2% year-over-year increase.

• Performance impacted by early monsoon, leading to lower demand for value-added products and underperformance of high-margin summer products.

• Strategic focus on procurement strength, product portfolio expansion, and distribution reach, with inorganic growth via Osam acquisition and greenfield expansion in Maharashtra.

• Unaudited consolidated financial results for the quarter ended June 30, 2025, were reviewed and approved by the Board on July 21, 2025, with an unmodified review opinion from the statutory auditors.

Financial highlights

• Q1 FY26 consolidated revenue: ₹10,069 million (up 10.5% YoY); EBITDA: ₹825 million (margin 8.2%); PAT: ₹629 million (margin 6.2%).

• Gross profit for Q1 FY26 was ₹2,600 million, with a gross margin of 25.8%.

• Net profit for the quarter was ₹628.71 million, compared to ₹650.24 million in the same quarter last year.

• Employee expenses rose 19.4% year-over-year to ₹470 million due to increments and new hires.

• Orgafeed business delivered ₹411 million revenue (up 29.4% YoY) and 17.6% EBITDA margin.

Outlook and guidance

• Expect margin improvement in Q2 FY26 as lower procurement prices take full effect.

• Guidance for FY27: absolute growth of 15%-20% in EBITDA/PAT, and 10%-15% in top-line revenue.

• Focus on expanding geographic reach and product portfolio, especially in East India via Osam acquisition and Maharashtra expansion.

• Long-term aim to accelerate growth while maintaining profitability, leveraging synergies from acquisitions.

• Africa and Orgafeed expected to grow in higher teens, India in low teens, with Osam acquisition to boost growth.