Dodla Dairy Limited has secured a significant victory in the Karnataka High Court regarding the GST classification of its flavored milk products. The court's ruling on December 30, 2025, addresses a dispute that has been ongoing since 2022, providing substantial financial relief to the dairy company.

Court Ruling Details

The Karnataka High Court quashed previous GST orders dated July 25, 2022, and April 25, 2023, that had classified flavored milk under an unfavorable tax category. The court's decision establishes the correct GST classification for flavored milk products and provides clear direction on tax rates.

Financial Impact

The favorable ruling will have a positive impact on Dodla Dairy's financial position. The company had been operating under the higher tax regime following the disputed classification orders.

The ₹2.03 crores represents provisions that had been accounted for in the company's books due to the disputed classification. The ₹1.47 crores refund amount consists of taxes that Dodla Dairy had paid under protest during the dispute period.

Implementation Timeline

The Karnataka High Court has directed the tax authorities to process the refund within a specific timeframe. The refund of taxes paid under protest, along with applicable interest, must be completed within three months from the date of receipt of the court order.

Regulatory Compliance

Dodla Dairy disclosed this development in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The disclosure was made on December 31, 2025, following the court's ruling on December 30, 2025. The company confirmed that no violations or contraventions were committed in this matter, as the dispute centered on the interpretation of GST classification rules rather than any compliance issues.

HDFC Mutual Fund has filed a substantial acquisition disclosure with Dodla Dairy Limited after its aggregate holdings crossed the 5% threshold mandated under SEBI regulations. The mutual fund's total stake in the dairy company reached 5.34% of the paid-up equity share capital as of December 10, 2025.

Regulatory Disclosure Details

The disclosure was made under Regulation 29(1) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. HDFC Asset Management Company Limited, acting as investment manager for HDFC Mutual Fund, submitted the required documentation to both the National Stock Exchange and BSE Limited on December 11, 2025.

Company Share Capital Structure

Dodla Dairy's current equity structure comprises a paid-up share capital of ₹60.33 crores, divided into 6.03 crore equity shares with a face value of ₹10.00 each. The company's shares are listed on both major Indian stock exchanges - NSE and BSE.

Acquisition Framework

The shares were acquired through open market transactions, with HDFC Small Cap Fund being the specific scheme under HDFC Mutual Fund that participated in the acquisition. The filing indicates that prior to this acquisition, the fund house held shares below the 5% disclosure threshold.

Compliance and Documentation

The substantial acquisition disclosure includes detailed annexures as prescribed under SEBI regulations, covering acquisition specifics and fund details. The documentation was signed by Dinesh Bhakade, Deputy Vice President - Compliance at HDFC Asset Management Company Limited, ensuring full regulatory compliance.

The disclosure confirms that no encumbrances, warrants, or convertible securities were involved in this transaction, with the acquisition limited to equity shares carrying voting rights in the target company.