Dodla Dairy reports revenue of US$114.7M in Q2 FY26

INDIA – Dodla Dairy Limited has announced Q2 FY26 results with revenue of US$114.7 million (₹10,188.00 million), up 2.1% year-on-year as gross margin expanded by over 200 basis points to 27.7%.

EBITDA stood at US$10.45 million (₹928.00 million) with a 9.1% margin, while PAT was US$7.4 million (₹657.00 million) with a 6.4% margin.

Operational highlights include a 13.4% increase in milk procurement volume and 12.6% growth in average milk sales volume.

The company saw a shift in product mix, with value-added products (excluding bulk sales) contributing 27% to total sales, up from 22% in Q2 FY25.

The results include two months of contribution from the recently acquired OSAM Dairy business. The company maintains a positive outlook, focusing on sustaining growth and enhancing its value-added product portfolio.

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, and the curd sales showed an 11.2% year-on-year growth.

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.”

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.

Future Outlook

The company remains optimistic about its prospects. It noted that it is well-positioned to sustain consistent growth, will focus on enhancing the share of value-added products, and continue to emphasize brand building, increase procurement, expand the portfolio, and expand market reach.

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