Dodla Dairy543306Quarterly results

Q2 FY27 results: revenue up 17.4% to Rs. 1,196.0 crore, PAT down 44.3% on milk cost pressure

Q2 FY27 results: revenue Rs. 1,196.0 crore, up 17.4% YoY; PAT Rs. 36.6 crore, down 44.3%.

By ScoutQuest · Wed 28 Oct 2026, 10:18 PM IST · 3 min read

₹2,394.0 Cr

Q2 FY27₹1,196.0 CrH1 FY27₹2,394.0 Cr

Consolidated revenue: ₹1,196.0 Cr (Q2 FY27) and ₹2,394.0 Cr (H1 FY27).

Revenue: Rs. 1,196.0 crore, up 17.4% YoY
PAT: Rs. 36.6 crore, down 44.3%
Milk Procurement: record 21.3 LLPD, up 9.3%

Quarterly numbers

Revenue for Q2 FY27 was Rs. 1,196.0 crore against Rs. 1,018.8 crore a year earlier, a rise of 17.4%.
EBITDA was Rs. 64.1 crore against Rs. 92.8 crore, down 30.9%; EBITDA margin fell to 5.4% from 9.11%.
Profit after tax was Rs. 36.6 crore against Rs. 65.7 crore, down 44.3%; PAT margin was 3.1% against 6.4%.
For the half year, revenue was Rs. 2,394.0 crore (up 18.2%) and PAT Rs. 77.2 crore (down 39.9%).

So sales grew in double digits while profit fell by more than a third, meaning costs rose faster than revenue.

Why margins came under pressure

Milk procurement price was Rs. 43.2 per litre against Rs. 37.3, up 15.7%, while realisation price was Rs. 61.9 per litre against Rs. 57.3, up 8.0%. Buying cost rose about twice as fast as the selling price.
Packing material costs rose 41.6% year on year for the quarter, and overheads per litre rose due to inflation, new labour code and geopolitical issues.
A price increase of Rs. 2.5 per litre was implemented during the quarter, largely towards the end of Q2 FY27, so only part of its benefit shows in this quarter.
Festive demand moved to Q3 this year from Q2 last year, which the company says makes the Q2 FY26 base high by comparison.

Volume and product mix

Milk procurement was the highest ever at 21.3 LLPD, up 9.3% year on year.
Milk sales volume was 14.2 LLPD, up 8.4%.
Total value-added product sales were Rs. 327.0 crore, or 27.3% of total sales. Excluding bulk sale, the contribution was 27.3% against 26.0% a year earlier; bulk sales of SMP and butter were not present in Q2 FY27 against Rs. 28.3 crore in Q2 FY26.
Curd sales volume grew 23.0% to 444.7 MTPD.
Demand for summer products such as ice cream, flavoured milk, buttermilk and lassi softened sequentially due to seasonality.

Other businesses

Africa business revenue grew 55.9% year on year with milk sales up 68.5%, helped by pricing aimed at gaining share in Kenya; EBITDA for the quarter was Rs. 18.9 crore.
OrgafeED business revenue grew 39.9% with an EBITDA margin of 5.9%, though raw material prices rose faster than selling prices.
OSAM saw healthy revenue from milk volumes, but value-added product contribution stayed low and margins remained under pressure.

Proposed joint venture

The Board approved a proposal to set up a joint venture in India with Meadow India Holdings Limited, with equity participation of 40% by the company and 60% by Meadow India Holdings Limited.
The venture is proposed to focus on marketing and selling high-quality dairy ingredients to the business-to-business market in India.
The proposal is subject to execution of the joint venture agreement, completion of necessary formalities and receipt of applicable regulatory and statutory approvals.

What the management said

The Managing Director attributed the revenue growth to a mix of volume growth and improved realisation, and said milk availability was healthy but procurement costs stayed elevated, pressuring gross margins. The company said it has started seeing positive momentum in the current month and remains focused on procurement and distribution capabilities, operating efficiencies and expanding the value-added product portfolio.

What a retail investor can watch

Whether procurement prices cool off, since that is the main swing factor between revenue growth and profit.
Whether the full effect of the Rs. 2.5 per litre price increase and the festive quarter lift value-added product sales.
Progress on the proposed joint venture, which is still subject to agreements and approvals.

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