Dodla Dairy reports US$124.2M in Q1 FY2027

INDIA – Dodla Dairy has reported a 35.4% fall in net profit to US$4.21 million (Rs 40.6 crore) despite a 19% rise in revenue to US$124.2 million (Rs 1,197.9 crore) in Q1 FY27 as compared with Q1 FY26.

During the period under review, milk procurement volume aggregated to 21.1 LLPD (up 13.0% YoY) while milk sales volume added up to 13.6 LLPD (up 14.5% YoY).

As a result, EBITDA fell by 21.3% YoY to US$6.73 million (Rs 64.9 crore) and EBITDA margin contracted by 280 basis points to 5.4% in the June 2026 quarter.

The board of directors of Dodla Dairy has approved primary investment proposal worth US$1.20 million (Rs 11.6 crore) for acquiring 2% stake in Sids Farm at a pre-money valuation of US$51.9 million (Rs 500 crore).

Sids Farm is a premium, antibiotic- and hormone-free dairy brand with a strong multi-region direct-to-consumer (D2C) and e-commerce presence.

Dodla Dairy said that the investment is within the company’s line of business (dairy) and complements the company’s established market dairy operations.

It provides the company exposure to the fast-growing premium and direct-to-consumer dairy segment and an opportunity to associate with, and support the growth of, a differentiated, high-quality dairy brand.

Dodla Sunil Reddy, managing director of Dodla Dairy, said: “During the quarter, the company banked upon a strong procurement cycle to be able to build inventory for upcoming quarters while also maintaining the market share.

As a result, procurement prices remained elevated despite a healthy milk supply. This strategy is in line with overall industry trends, and we expect prices to start normalising Q2 onwards.

With extended summers, our VAP portfolio, including curd, buttermilk, lassi, and ice cream, delivered record sales, reaching about a third of our total sales.

At the operating level, the company saw improvement in our Africa, OSAM and Orgafeed businesses. However, standalone business performance was impacted primarily due to pricing pressure.

“We are also progressing well towards our expansion plan focused on capacity increase, expanding our geographic footprint to deepen market presence and widen distribution reach, and increasing our VAP mix to enhance margins as well as diversify the product portfolio.”

Dodla Dairy is one of India’s leading integrated dairy companies. The company procures, processes, and sells milk and milk products.

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