Dodla Dairy's record ₹1,197.9 crore revenue fails to halt 35% profit slide
Higher milk procurement costs squeezed margins to 5.4% from 8.2%, while a small ₹11.6 crore D2C investment hints at future strategy.
— 4 earlier stories on Dodla Dairy Ltd →What's new
- Revenue hit ₹1,197.9 crore, up 19% YoY, the highest ever.
- Net profit fell 35% to ₹40.6 crore, with EBITDA margin narrowing to 5.4% from 8.2%.
- Invested ₹11.6 crore for a 2% stake in premium D2C brand Sids Farm.
Why this matters
The top line is growing strongly, but Dodla can't escape the milk cost vise. Procurement prices rose 10.4% while realisations managed only 3.9%. Until that gap closes, profit growth will lag revenue. The Sids Farm stake is a small bet on D2C but does little for near-term earnings.
What we're watching
- Whether milk procurement costs ease in H2 FY27.
- Any expansion of the Sids Farm partnership beyond the initial stake.
- If realisation growth accelerates to close the price cost gap.
The full read
Dodla Dairy clocked its highest ever quarterly revenue of ₹1,197.9 crore, up 19% on record milk procurement and strong value added product sales. But the headline profit tells a different story. Net profit slumped 35% to ₹40.6 crore as milk procurement costs rose 10.4% while realisations inched up only 3.9%. The EBITDA margin contracted to 5.4% from 8.2% a year ago, a squeeze that reflects persistent input cost inflation. The company also announced a ₹11.6 crore investment for a 2% stake in premium D2C brand Sids Farm, a small but strategic toehold in the direct to consumer space. No new guidance accompanied the numbers; this is a routine earnings update confirming that top line momentum remains intact but profitability continues to suffer. The market already knew milk costs were high. The question is when they will ease and allow margins to recover. That timeline remains uncertain.
Questions answered
- Why did Dodla Dairy's profit fall despite record revenue?
- Milk procurement costs surged 10.4% year on year, far outpacing realisation growth of only 3.9%. This compressed gross margins and pushed EBITDA margin down to 5.4% from 8.2%, causing net profit to drop 35% to ₹40.6 crore.
- What drove the 19% revenue growth?
- Record milk procurement volumes and strong growth in value added products. The company did not break out segment numbers, but the press release cited both as key drivers.
- What is the Sids Farm investment about?
- Dodla invested ₹11.6 crore for a 2% stake in Sids Farm, a premium D2C dairy brand. The move is exploratory, a toehold in the fast growing direct to consumer segment, not a major strategic pivot.
- How does this quarter compare to the previous one?
- The prior quarter (Q4 FY26) saw standalone profit fall 61 to 65 percent year on year. The consolidated numbers now show a 35 percent decline, but margin compression remains the dominant theme. Improvement in the pace of profit decline is not evident yet.
- What is the company's debt and valuation position?
- Dodla has negligible debt (debt to equity 0.02) and a trailing P/E of 25.1. The low leverage provides cushion, but the stock's valuation still assumes a margin recovery that hasn't materialised.
Dodla Dairy Ltd
Latest quarter · Jun 2026
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All notes on DODLA →- 25 Jul 2026 · 11:24 AM IST Dodla Dairy's record ₹1,197.9 crore revenue fails to halt 35% profit slide
- 1d ago Dodla Dairy cuts FY27 margin guidance as milk costs bite
- 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
- 3d ago Dodla Dairy profit falls 65% as milk costs bite