Dodla Dairy Limited , a leading integrated dairy company, has announced its unaudited financial results for the second quarter of fiscal year 2026, showcasing resilient performance and strategic growth.

Financial Highlights

For Q2 FY26, Dodla Dairy reported:

• Revenue of ₹10,188.00 million, up 2.1% year-on-year
• Gross margin expansion of over 200 basis points, reaching 27.7%
• EBITDA of ₹928.00 million with a 9.1% margin
• PAT of ₹657.00 million, representing a 6.4% margin

Operational Performance

The company demonstrated strong operational metrics:

• Milk procurement volume increased by 13.4% year-on-year to 19.5 LLPD
• Average milk sales volume grew by 12.6% to 13.1 LLPD
• Curd sales showed an 11.2% year-on-year growth

Strategic Developments

Dodla Dairy's performance in Q2 FY26 includes two months of contribution from its recently acquired OSAM Dairy business. While OSAM currently operates at lower margins, it's expected to contribute to the company's long-term growth strategy.

Product Mix Shift

A significant change in product mix was observed:

• Bulk sales contribution declined
• Growth driven by liquid milk and high-margin value-added products
• Value-added products (excluding bulk sales) contributed 27% to total sales, up from 22% in Q2 FY25

Management Commentary

Dodla Sunil Reddy, Managing Director of Dodla Dairy, stated, "Over the last two years, we have maintained a CAGR above 15% in revenue and EBITDA, and over 22% in PAT, reflecting the strength of our business strategies. Our Africa and Orgafeed segments continue to show robust growth, with temporary margin pressures arising from strategic product pricing in Kenya to gain market share and seasonal factors in the feed business."

Future Outlook

The company remains optimistic about its future prospects:

• Well-positioned to sustain consistent growth
• Focus on enhancing the share of value-added products
• Continued emphasis on brand building, increasing procurement, portfolio expansion, and market reach

Corporate Governance

The Board of Directors has approved the re-appointment of Dr. Raja Rathinam as a Non-executive Independent Director for a second term of five consecutive years, from February 1, 2026, to January 31, 2031, subject to shareholder approval. Dr. Rathinam brings over 41 years of experience in the dairy industry to the board.

Dodla Dairy's Q2 FY26 results demonstrate the company's ability to navigate market challenges while focusing on strategic growth initiatives and value-added product expansion.

Dodla Dairy Limited , a prominent player in the Indian dairy industry, has reported mixed results for the second quarter, with revenue growth offset by a decline in EBITDA.

Financial Highlights

Dodla Dairy reported Q2 revenue of ₹10.19 billion, up from ₹10.00 billion in the same quarter last year, showing modest growth. However, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) declined to ₹928.00 million from ₹962.00 million year-over-year.

Profitability Metrics

The EBITDA margin compressed to 9.11% from 9.64% in the previous year's corresponding quarter, indicating some pressure on profitability. Despite this, the company's consolidated net profit for Q2 rose by 3.6% year-over-year to ₹657.00 million, up from ₹634.00 million in the same period last year, marking a growth of ₹23.00 million.

Revenue Breakdown

The company's revenue from operations for the quarter stood at ₹10,188.22 million. Dodla Dairy's performance in its home market remained strong, with domestic revenues reaching ₹9,037.58 million for the quarter.

International Presence

Dodla Dairy's international operations contributed significantly to its overall performance. The company reported revenues of ₹1,150.64 million from its operations outside India, underscoring its growing global footprint in the dairy sector.

Strategic Acquisition

In a significant move to expand its market presence, Dodla Dairy completed the acquisition of HR Food Processing Private Limited, also known as Osam Dairy, for a consideration of ₹2,710.00 million. This strategic acquisition is expected to strengthen Dodla Dairy's position in the market and potentially contribute to future growth.

Board Expansion and Corporate Governance

The company has also taken steps to enhance its corporate governance structure. The Board of Directors has approved the re-appointment of Dr. Raja Rathinam as a Non-executive Independent Director for a second term of five years, subject to shareholder approval.

Dr. Rathinam brings over 41 years of experience in the dairy industry to Dodla Dairy's board. His extensive background includes roles with various dairy organizations and consultancy for international bodies like the World Bank. Dr. Rathinam's reappointment is expected to provide valuable insights and guidance as the company navigates its growth trajectory.

Looking Ahead

While Dodla Dairy has shown resilience in its Q2 performance with revenue growth, the company faces challenges in maintaining profitability as evidenced by the decline in EBITDA and margin compression. The strategic acquisition of Osam Dairy and the strengthening of its board indicate that Dodla Dairy is positioning itself for long-term success in the dairy industry.

Investors and industry observers will be watching closely to see how these strategic moves translate into financial performance in the coming quarters, as Dodla Dairy continues to expand its operations both domestically and internationally.