Modern Dairies Reports Mixed Q2 Results: Revenue Up, Profit Down

Modern Dairies Limited , a key player in the milk and milk products industry, has announced its unaudited financial results for the second quarter ended September 30, 2025, revealing a mixed performance with increased revenue but decreased profitability.

Revenue Growth Amid Challenging Environment

The company reported a total income of Rs. 8,241.70 lacs for Q2 FY2026, marking an 11.1% increase from Rs. 7,420.00 lacs in the corresponding quarter of the previous year. This growth in revenue showcases the company's ability to expand its market presence despite challenging economic conditions.

Profitability Under Pressure

Despite the revenue growth, Modern Dairies experienced a significant decline in profitability:

Particulars	Q2 FY2026	Q2 FY2025	YoY Change
Total Income (Rs. lacs)	8,241.70	7,420.00	+11.1%
Net Profit (Rs. lacs)	169.23	334.79	-49.5%
EPS (Basic) (Rs.)	0.64	1.42	-54.9%
EPS (Diluted) (Rs.)	0.60	1.42	-57.7%

The net profit for Q2 FY2026 stood at Rs. 169.23 lacs, a substantial 49.5% decrease from Rs. 334.79 lacs in Q2 FY2025. This decline in profitability may be attributed to increased operational costs or market pressures, although specific reasons were not provided in the financial results.

Half-Year Performance

For the half-year period ended September 30, 2025:

Total income reached Rs. 16,085.62 lacs, down 4.7% from Rs. 16,878.98 lacs in the previous year.
Net profit declined to Rs. 334.29 lacs, a 53.4% decrease from Rs. 717.63 lacs in the corresponding period.

Operational Highlights

The company's Board of Directors approved these results in their meeting held on November 10, 2025, in Chandigarh. Modern Dairies continues to face ongoing litigation regarding milk cess liability to the Government of Haryana, with the matter pending before the Supreme Court.

Financial Position

As of September 30, 2025, Modern Dairies reported:

Total assets of Rs. 11,990.22 lacs, a slight increase from Rs. 11,691.40 lacs as of March 31, 2025.
Equity share capital remained unchanged at Rs. 2,565.89 lacs.
Other equity increased to Rs. 1,799.08 lacs from Rs. 1,469.73 lacs at the end of the previous fiscal year.

Looking Ahead

While Modern Dairies has shown resilience in revenue growth, the significant decline in profitability may pose challenges for the company. The company's ability to maintain revenue growth while improving profit margins will be crucial for its performance in the remainder of the fiscal year. Additionally, the resolution of the milk cess liability issue could have an impact on the company's financial outlook.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.18%	-1.76%	-6.62%	-26.17%	-29.50%	+943.38%

Modern Dairies Limited , a leading manufacturer of milk and milk products, has reported its financial results for the first quarter. The company faced challenges during the quarter, with both revenue and profit showing significant declines compared to the same period last year.

Financial Highlights

Revenue from operations decreased by 17.08% to ₹783.03 crores, down from ₹944.34 crores in the same quarter of the previous year.
Total income declined to ₹784.39 crores from ₹945.90 crores year-over-year.
Profit after tax dropped by 57.22% to ₹16.51 crores, compared to ₹38.59 crores in the previous year's quarter.
Cost of materials consumed decreased to ₹605.72 crores from ₹783.21 crores.

Quarterly Performance Analysis

Despite the overall decline in revenue and profit, Modern Dairies managed to maintain profitability in a challenging environment. The company's cost-cutting measures are evident in the reduced cost of materials consumed, which decreased by approximately 22.66% compared to the same quarter last year.

The following table summarizes the key financial metrics:

Particulars (in ₹ crores)	Q1	Q1 (Previous Year)	YoY Change
Revenue from Operations	783.03	944.34	-17.08%
Total Income	784.39	945.90	-17.08%
Cost of Materials Consumed	605.72	783.21	-22.66%
Profit After Tax	16.51	38.59	-57.22%

Operational Overview

Modern Dairies Limited continues to focus on its core business of manufacturing milk and milk products. The company's financial results reflect the challenges faced in the dairy industry, including potential fluctuations in raw material costs and market demand.

Ongoing Legal Matter

The company disclosed an ongoing legal issue regarding Milk Cess liability to the Haryana government. As of December 31, 2023, Modern Dairies had received a demand notice for ₹544.31 crores for Milk Cess along with compounded interest. The matter is currently pending before the Supreme Court, with an interim stay granted in 2012.

As a precautionary measure, the company has made provisions for Milk Cess in its accounts. For the current quarter, an additional provision of ₹11.81 lakhs was made, bringing the total provision to ₹21.42 crores. Modern Dairies has already deposited ₹9.91 crores as per the orders of the Supreme Court and the Punjab & Haryana High Court.

Conclusion

Modern Dairies Limited's quarterly results reflect the ongoing challenges in the dairy sector. While the company has experienced a notable decline in both revenue and profit, its ability to reduce costs and maintain profitability indicates resilience in a difficult market environment. Investors and stakeholders will likely be watching closely to see how the company navigates these challenges in the coming quarters and addresses the ongoing legal matter regarding Milk Cess liability.