Dodla Dairy Limited announced its unaudited financial results for Q2 FY27, reporting a strong 17.4% year-over-year revenue growth to ₹1,196.0 crore. The company highlighted an all-time high milk procurement volume and robust growth in its Africa and Orgafeed businesses, despite margin pressures from elevated raw material costs. A new joint venture for B2B dairy ingredients was also approved.
Dodla Dairy Reports Strong Q2 FY27 Performance
Dodla Dairy Limited has announced its unaudited financial results for the second quarter and first half of fiscal year 2027 (Q2 FY27). The company demonstrated a healthy performance, with total revenue for Q2 FY27 increasing by 17.4% year-over-year to reach ₹1,196.0 crore. This growth was attributed to a combination of volume expansion and improved realisations, including a price increase implemented during the quarter.
Key Financial Highlights
Consolidated financial highlights for Q2 FY27 show total revenues of ₹1,196.0 crore, a 17.4% increase compared to Q2 FY26. EBITDA stood at ₹64.1 crore, while Profit After Tax (PAT) was ₹36.6 crore. For the first half of FY27 (H1 FY27), revenues grew by 18.2% to ₹2,394.0 crore, with EBITDA at ₹129.0 crore and PAT at ₹77.2 crore. The company also reported its highest ever milk procurement volume at 21.3 LLPD, a 9.3% YoY growth.
Segmental Performance and Operational Updates
The Value-Added Products (VAP) portfolio contributed ₹327.0 crore in revenue, representing 27.3% of total sales. The Africa business delivered a significant revenue growth of 55.9% YoY, driven by a 68.5% increase in milk sales. The Orgafeed business also recorded strong revenue growth of 39.9% YoY.
Despite these positive top-line results, gross margins faced pressure due to elevated procurement costs and inflationary impacts. The company is navigating these challenges by focusing on strengthening procurement and distribution capabilities, driving operational efficiencies, and expanding its value-added product portfolio.
Joint Venture Approval
In a significant recent update, the Board of Directors has approved a proposal to establish a joint venture company in India with Meadow India Holdings Limited (MIHL). Dodla Dairy will hold a 40% equity participation, while MIHL will hold 60%. This joint venture will focus on marketing and selling high-quality dairy ingredients to the business-to-business (B2B) market in India. The proposal is subject to regulatory and statutory approvals.
Source: BSE
