Dodla Dairy profit falls 65% as milk costs bite
Higher procurement costs drove standalone net profit down to ₹21.75 crore in Q1 FY27 from ₹62.36 crore a year ago, even as revenue rose to ₹955.66 crore.
— 4 earlier stories on Dodla Dairy Ltd →What's new
- Standalone net profit fell 65% to ₹21.75 cr on higher milk procurement costs.
- Revenue grew to ₹955.66 cr standalone; consolidated revenue was ₹1,197.94 cr.
- Board approved ₹11.65 cr for a 2% stake in D2C brand Sids Farm.
Why this matters
The profit drop is steep but not a surprise. Margin pressure from elevated milk procurement costs has been building for quarters. The Sids Farm investment, though small, signals Dodla's push into premium direct-to-consumer channels.
What we're watching
- Whether milk costs ease in coming quarters to revive margins.
- Any further consolidation or expansion in the D2C space.
- How the Uganda subsidiary Lakeside Dairy performs.
The full read
Profit fell 65%. Standalone net profit of ₹21.75 crore in Q1 FY27 is a steep drop from ₹62.36 crore a year earlier, despite revenue climbing to ₹955.66 crore. Consolidated numbers, which include Uganda-based Lakeside Dairy and the newly acquired HR Food Processing, came in at ₹1,197.94 crore in revenue and ₹40.64 crore in profit. The board also nudged into D2C via a ₹11.65 crore, 2% stake in Sids Farm. Not material. The margin story is what matters — and it won't improve until milk procurement costs ease.
Questions answered
- Why did Dodla Dairy's profit drop so sharply?
- Higher milk procurement costs compressed margins, driving Q1 FY27 standalone net profit to ₹21.75 cr from ₹62.36 cr a year earlier.
- How did revenue perform?
- Standalone revenue rose to ₹955.66 cr, and consolidated revenue including Uganda and HR Food Processing reached ₹1,197.94 cr.
- What is the Sids Farm deal?
- Dodla bought a 2% stake in Sids Farm, a premium D2C dairy brand, for ₹11.65 cr. The investment is small relative to Dodla's ₹6,689 cr market cap.
- Is the profit decline a one-off or a trend?
- The analyst rationale says it's consistent with broader margin pressure already observed in prior quarters and likely anticipated by the market.
- What are Dodla's key subsidiaries?
- They include Uganda-based Lakeside Dairy and the recently acquired HR Food Processing (Osam).
Dodla Dairy Ltd
Latest quarter · Jun 2026
Strength & growth
Story so far
All notes on DODLA →- 25 Jul 2026 · 10:45 AM IST Dodla Dairy profit falls 65% as milk costs bite
- 1d ago Dodla Dairy cuts FY27 margin guidance as milk costs bite
- 3d ago Dodla Dairy's record ₹1,197.9 crore revenue fails to halt 35% profit slide
- 3d ago Dodla Dairy profit falls 61% as milk costs squeeze margins
- 3d ago Dodla Dairy's Q1 profit slumps 61% as milk costs bite