Dodla Dairy earnings fell in the quarter ended September 30, 2026, as consolidated net profit declined 44.3% to ₹36.59 crore from ₹65.67 crore a year earlier. Revenue rose, but the company said its results were not directly comparable with the prior-year period following an acquisition.

Key Takeaways

  • Milk procurement prices rose faster than the company’s realization price.
  • A ₹2.5-per-litre milk price increase took effect in the second half of the quarter.
  • Dodla’s board approved a proposed dairy ingredients joint venture, subject to an agreement and regulatory approvals.

Dodla Dairy earnings face higher costs

Revenue from operations rose 17.4% to ₹1,196.02 crore in the second quarter of fiscal 2027, from ₹1,018.82 crore a year earlier. Dodla said the consolidated periods were not comparable following its acquisition of HR Food Processing Private Ltd, effective August 1, 2025.

The company said its milk procurement price increased 15.7% year over year to ₹43.2 a litre, while its realization price rose 8% to ₹61.9 a litre. Packing material costs climbed 41.6%, and per-litre overheads increased because of inflation, the new labour code and geopolitical issues, it said.

Managing Director Dodla Sunil Reddy said the benefit of the quarter’s milk price increase was only partly reflected in the results because the revision took effect in the second half of the quarter. The company also said festive demand shifted to the third quarter this year from the second quarter last year.

Milk volumes and African business grow

Milk procurement rose 9.3% to 21.3 lakh litres a day, while milk sales increased 8.4% to 14.2 lakh litres a day. Value-added product sales were ₹327 crore, up from ₹292.8 crore, and curd sales volume grew 23% to 444.7 tonnes a day.

Dodla said revenue from its African business, which operates in Kenya and Uganda, grew 55.9%. Group subsidiary Lakeside Dairy describes its presence in western and central Uganda in its corporate overview.

Proposed ingredients venture

The board approved a proposal for an Indian joint venture with Meadow India Holdings Ltd to market and sell dairy ingredients to businesses. Dodla would own 40% and Meadow India Holdings 60%. The proposal remains subject to signing a joint venture agreement and obtaining regulatory approvals.

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