Dodla Dairy (DODLA) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 consolidated revenue reached ₹10,188 million (INR 1,019 crores), up 2.1% year-on-year, with EBITDA margin at 9.1% and PAT margin at 6.4%.

• Osam Dairy acquisition completed in July/August 2025, contributing two months of revenue and expanding the East India footprint.

• Core business (excluding Osam and bulk sales) delivered 13% year-on-year revenue growth, with robust volume growth in liquid milk and value-added products.

• Africa and Orgafeed segments showed strong revenue growth, though Africa margins were pressured by strategic pricing in Kenya.

• Brand-building initiatives and market expansion continued, with a focus on local markets, Africa, and portfolio expansion.

Financial highlights

• Q2 FY26 revenue from operations: ₹10,188 million (INR 1,019 crores), up 2.1% YoY; H1 FY26 revenue: ₹20,257 million (INR 2,026 crores), up 6.1% YoY.

• Q2 FY26 EBITDA: ₹928 million (INR 93 crores), margin at 9.1%; PAT: ₹657 million (INR 66 crores), margin at 6.4%.

• Gross profit margin improved to 27.7% from 25.5% in Q2 FY25.

• Net cash from operating activities in H1 FY26 was ₹1,719 million.

• Capex of INR 77 crores in H1, mainly for Maharashtra expansion; strong cash and bank balances at INR 596 crores as of September 2025.

Outlook and guidance

• Standalone India expected to grow 6-8% in H2; Africa and Osam to improve profitability.

• Margins expected to remain in the 8-10% range, with some uncertainty due to weather and procurement costs.

• Focus on increasing value-added product share, product mix, and operational efficiency; no significant price hikes planned.