Dodla Dairy Reports Strong Revenue Growth in FY26 Amid Margin Pressure

Dodla Dairy Reports Strong Revenue Growth in FY26 Amid Margin Pressure​

Dodla Dairy Ltd., a leading integrated dairy company, has announced its audited financial results for the fourth quarter (Q4) and the full fiscal year (FY26). The company reported robust revenue figures, noting record sales volumes and solid growth in its Africa and Orgafeed segments, despite input costs putting pressure on gross margins.

Consolidated Financial Overview​

The financial results for Q4 FY26 and FY26 show significant top-line growth for the company. Consolidated revenues reached ₹ 10,745 Mn in Q4 FY26, marking an 18.1% year-on-year (YoY) increase from ₹ 9,096 Mn in Q4 FY25. Over the full fiscal year, revenues for FY26 stood at ₹ 41,252 Mn, demonstrating a 10.9% YoY rise compared to FY25.

Profitability figures showed variations across the quarters. While the PAT grew moderately, the EBITDA figures declined. For instance, EBITDA in Q4 FY26 was ₹ 538 Mn, a 35.6% decrease compared to ₹ 835 Mn recorded in Q4 FY25.

The financial performance across the quarters and years is detailed below:

Operational and Volume Highlights​

Operationally, the company recorded a Milk Procurement volume of 18.5 LLPD, reflecting a 13.4% YoY increase. Milk sales volume reached an all-time high of 14.0 LLPD, representing a 19.5% YoY increase.

Value Added Products (VAP) sales contributed ₹ 2,969 Mn in Q4 FY26, accounting for 28% of total sales. This was compared to ₹ 2,841 Mn in the previous year. Excluding bulk sales, VAP contribution stood at ₹ 2,969 Mn, which constituted 28% of total sales, up from 27% of revenue in the prior year. Curd sales volume showed solid growth of 15.4%.

The company’s specialized business units also reported robust performance:

• Africa Business: This segment delivered strong revenue growth of 48% YoY, primarily driven by a 63% YoY growth in milk sales. It achieved its highest ever EBITDA of ₹ 184 Mn in Q4 FY26.
• Orgafeed Business: This segment recorded a strong revenue growth of 23.2% YoY, maintaining an EBITDA margin of 9.5%.

Milk Pricing and Input Costs​

The financial data for the dairy input market indicates a rising cost environment. The procurement price for milk increased significantly, recording ₹ 40.97 in Q4 FY26, up 9.7% YoY from ₹ 37.36 in Q4 FY25. The realization price rose 4.0% YoY, reaching ₹ 58.4.

Management noted that milk procurement costs remained elevated due to constrained milk supply in the industry. The Milk Price Per Liter (₹) metrics highlight this trend:

Management Commentary and Outlook​

Commenting on the results, Dodla Dairy's Managing Director, Mr. Dodla Sunil Reddy, stated that the company delivered a resilient performance in FY26 despite a challenging operating environment. He attributed margin pressure to the increase in procurement costs, which were not fully passed on to consumers.

He noted that for FY26, revenue growth was largely volume-driven, with margins compressed due to the high input costs. Looking ahead, Mr. Reddy stated that the milk supply situation showed signs of improvement, suggesting a possible gradual normalization in procurement prices. The company believes there is an opportunity to pass on a part of the elevated input costs to consumers in the near term.

The company remains focused on long-term growth. Future plans include an integrated dairy plant in Maharashtra within India and plans to leverage its brand recall by establishing a greenfield plant in Uganda in Africa.

DODLA Stock Price Movement​

Shares of Dodla Dairy Limited on Friday slipped by 2.59% to settle at ₹1025.6. The stock saw a total traded volume of 36,665 shares, indicating selling pressure throughout the session.