Modern Dairies FY26 Results: Revenue down 2%, profit falls 31%
- Modern Dairies reports FY26 total income of ₹3,412.17 crore, down 2.2% YoY
- Net profit falls 94.1% to ₹48.84 crore, impacted by high prior-year exceptional items
- Board seeks approval to raise related-party transaction limit with Nabha Commerce to ₹145 crore annually
- Executive Director Ashwani Kumar Aggarwal's salary revised to ₹3 lakh per month
- No dividend declared for FY26 due to operational fund requirements
*this image is generated using AI for illustrative purposes only.
Modern Dairies has scheduled its 34th Annual General Meeting (AGM) for September 26, 2026, to adopt audited financial statements for FY26. The dairy products manufacturer reported a contraction in both top-line and bottom-line figures during the fiscal year ended March 31, 2026.
The company posted total income of ₹3,412.17 crore, a decline from ₹3,489.14 crore in the previous year. Profit before tax fell to ₹67.35 crore, down sharply from ₹657.28 crore in FY25.
Financial Performance
Modern Dairies faced margin pressure due to elevated raw milk prices that could not be fully passed on to customers. Operating profit dropped to ₹111.11 crore from ₹147.70 crore in FY25. Finance costs decreased to ₹11.16 crore from ₹18.29 crore.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Total Income | ₹3,412.17 crore | ₹3,489.14 crore | -2.2% |
| Operating Profit | ₹111.11 crore | ₹147.70 crore | -24.8% |
| Profit Before Tax | ₹67.35 crore | ₹657.28 crore | -89.8% |
| Net Profit | ₹48.84 crore | ₹829.61 crore | -94.1% |
The previous year's profit figure included exceptional items of ₹559.39 crore, which significantly inflated the year-on-year comparison base. Excluding these one-time gains, operational profitability remains under scrutiny as input costs remain high.
Related Party Transactions
A key agenda item is the ratification of material related-party transactions with Nabha Commerce Private Limited. The board seeks approval to increase the annual transaction limit from ₹60 crore to ₹145 crore for three years until the 37th AGM in 2029. Nabha Commerce is a related party because Mr. Krishan Kumar Goyal, the Chairman and Managing Director, and his relatives are shareholders in the entity.
Corporate Governance & Auditors
Shareholders will also vote on the reappointment of Mr. Ashwani Kumar Aggarwal as Executive Director for a three-year term ending in 2029. His monthly salary will be revised to ₹3 lakh, up from ₹2.5 lakh previously.
The company proposes appointing M/s Sanjeev Sharma & Associates as statutory auditors for a one-year term with remuneration of ₹11 lakh. M/s K K Sinha & Associates will continue as cost auditors for FY27 with fees totaling ₹70,000.
What the Numbers Show
The divergence between the reported net profit decline of 94.1% and the more modest operating profit drop of 24.8% highlights the distorting effect of non-recurring items in the prior year. While operational margins contracted due to input cost inflation, the absolute profit impact was severe only when compared against the exceptional gains of FY25. This suggests underlying operational resilience despite challenging market conditions, though cash flow generation requires monitoring given the working capital intensity of the dairy sector.
Historical Stock Returns for Modern Dairies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.96% | +0.22% | +21.53% | +10.18% | -25.21% | 0.0% |
How does Modern Dairies plan to mitigate the impact of persistent raw milk price inflation on operating margins in FY27?
What specific operational strategies will the company employ to improve cash flow generation given the sector's working capital intensity?
Will the increased related-party transaction limit with Nabha Commerce Private Limited lead to changes in supply chain efficiency or cost structures?
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