Dodla Dairy hits record revenue but profit falls 35% in Q1FY27
Dodla Dairy achieved record quarterly revenue of ₹1,197.9 crore in Q1FY27, driven by 13% growth in milk procurement and strong value-added product sales. However, net profit declined 35% to ₹40.64 crore due to elevated input costs and inventory adjustments. The company also approved a ₹11.65 crore investment in Sids Farm Private Limited.
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Dodla Dairy reported a consolidated net profit of ₹40.64 crore for the quarter ended June 30, 2026 (Q1FY27), a 35% decline from ₹62.87 crore in Q1FY26. Despite achieving its highest-ever quarterly revenue of ₹1,197.9 crore, up 19% year-on-year, profitability contracted due to elevated milk procurement prices and strategic inventory buildup for upcoming quarters. The standalone net profit fell sharply to ₹21.75 crore from ₹62.36 crore in the prior year period.
The Board of Directors, meeting on July 25, 2026, approved the unaudited financial results pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by statutory auditors S.R. Batliboi & Associates LLP. The Board also approved the acquisition of a 2% equity stake in Sids Farm Private Limited, a premium direct-to-consumer dairy brand, for approximately ₹11.65 crore.
Financial Performance
Consolidated revenue from operations increased to ₹1,197.94 crore in Q1FY27, up from ₹1,006.87 crore in Q1FY26. Domestic revenue contributed ₹1,042.46 crore, while international operations generated ₹155.48 crore, a significant rise from ₹106.41 crore in the prior year. Total expenses rose to ₹1,156.82 crore from ₹942.81 crore, primarily due to higher cost of materials consumed (₹940.61 crore vs ₹710.61 crore) and other expenses (₹157.79 crore vs ₹129.88 crore).
| Metric | Q1FY27 (₹ cr) | Q1FY26 (₹ cr) | Change |
|---|---|---|---|
| Consolidated Net Profit | 40.64 | 62.87 | -35% |
| Standalone Net Profit | 21.75 | 62.36 | -65% |
| Consolidated Revenue | 1,197.94 | 1,006.87 | +19% |
| Standalone Revenue | 955.66 | 900.67 | +6% |
| Earnings Per Share (Basic) | ₹6.74 | ₹10.42 | -35% |
The company’s earnings per share (basic and diluted) stood at ₹6.74, down from ₹10.42 in the previous year. Standalone EPS was ₹3.61 compared to ₹10.34 in Q1FY26. EBITDA was reported at ₹64.9 crore during the quarter. The decline in profitability is attributed to the seasonal nature of the business and higher input costs, as noted in the segment-wise analysis where non-current assets outside India decreased to ₹117.09 crore from ₹126.16 crore.
Operational Highlights
Milk procurement grew by 13.0% year-on-year to an average of 21.1 lakh litres per day (LLPD), while milk sales volume increased by 14.5%. Value-added products (VAP), including curd, buttermilk, lassi, and ice cream, delivered record sales, contributing about 34.6% of total sales. Curd sales volume registered a robust 41.4% year-on-year growth. Bulk sales for the quarter were nil, compared to ₹57.7 crore in Q1FY26.
Procurement prices remained at an elevated level despite healthy milk supply, rising 10.4% year-on-year to ₹41.3 per litre. Realization prices increased by 3.9% to ₹59.4 per litre. Management stated that the strategy of building inventory during strong procurement cycles aligns with industry trends, with prices expected to normalize from Q2 onwards.
Strategic Initiatives
Dodla Dairy approved a primary investment of approximately ₹11.6 crore for a 2% stake in Sids Farm Private Limited, a D2C dairy brand. Sids Farm reported an unaudited turnover of ₹240 crore in FY25-26 and manufactures antibiotic- and hormone-free milk products. The acquisition aims to complement Dodla’s existing market operations by providing exposure to the fast-growing premium D2C dairy segment.
The company continues its expansion plan focused on increasing capacity by ~15 LLPD, expanding geographic footprint, and deepening market presence. A total capex plan of ₹590.0 crore+ is allocated for FY26 to FY28, with ₹350.0 crore+ already executed in FY26. Recent updates include the inauguration of a milk parlour in Patna, Bihar, and a 2kl RMC plant in Bhandra, Jharkhand.
What the Numbers Show
Despite robust top-line growth, particularly in international revenues which surged 46% year-on-year, the bottom line faced pressure. The cost of materials consumed rose disproportionately to revenue growth, increasing by 32% to ₹940.61 crore against a 19% revenue increase. This divergence suggests margin compression in the current quarter. Additionally, the change in inventory valuation, showing an increase of ₹21.13 crore, impacted the profit before tax figures. Investors should monitor whether these cost pressures are temporary or indicative of broader structural shifts in input pricing.
Historical Stock Returns for Dodla Dairy
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.30% | -1.04% | -3.82% | -11.57% | -20.83% | +76.69% |
How will the anticipated normalization of milk procurement prices in Q2FY27 impact Dodla Dairy's margin recovery trajectory?
What specific synergies does Dodla Dairy expect to realize from its 2% stake in Sids Farm to accelerate growth in the premium D2C segment?
Can the company sustain its 19% revenue growth momentum while managing the structural increase in input costs and inventory valuation changes?
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