Dodla Dairy (DODLA) Q2 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly revenue of INR 998 crore (₹9,976.22 million) in Q2 FY25, up 29.9% YoY, with strong value-added product (VAP) growth and robust milk procurement during the flush season.

• Declared interim dividend of INR 3 (₹2.3) per share, the first since listing, reflecting confidence in financial strength and future growth.

• Expansion plans underway with acquisition of 35 acres in Maharashtra for an integrated plant, targeting enhanced operational efficiency and product portfolio.

• Maintained strong brand presence across South India, including tier-two and tier-three cities, and continued investments in brand-building activities.

• 835,074 equity shares allotted under ESOP during the period.

Financial highlights

• Q2 FY25 revenue from operations was INR 998 crore (₹9,976.22 million), up from INR 768 crore (₹7,677.50 million) in Q2 FY24.

• Gross margin for the quarter stood at 25.5%, with EBITDA at INR 96 crore (₹963 million, margin 9.6%) and net profit at INR 63 crore (₹633.76 million, margin 6.4%).

• H1 FY25 revenue reached INR 1,990 crore (₹19,092 million), EBITDA at INR 201 crore (₹2,014 million), and net profit at INR 128 crore (₹1,284 million).

• Cash from operations in H1 FY25 was INR 342 crore (₹3,421.19 million), strengthening the balance sheet.

• Earnings per share (basic) for H1 FY25 was ₹21.47, compared to ₹13.21 in H1 FY24.

Outlook and guidance

• Expecting stable procurement prices with only marginal increases in FY25; Q3 prices remain stable, with possible increases in Q4.

• Profitability expected to be maintained at current levels, with a focus on absolute earnings growth and maintaining 9%-10% EBITDA margins.

• Guidance for 10% volume growth and 15% value growth annually, with profitability at current levels.

• Focus on expanding VAP portfolio, organic and inorganic growth, and leveraging strong balance sheet for future investments.

• CapEx for Maharashtra plant to be staged, with major spend in FY26; project expected to commence operations by April 2026.