Dodla Dairy reported a 13.7% YoY increase in revenue, reaching ₹10,250 million in Q3 FY26. Despite robust volume growth, profitability was impacted by higher procurement costs and other factors. The company is progressing with its Maharashtra expansion and planning new capacity in Uganda. A one-time provision of ₹57 million for revised labor codes was recognized, offset by a tax reversal of ₹219 million.
Financial Performance
In Q3 FY26, Dodla Dairy achieved revenue of ₹10,250 million, a 13.7% increase year-over-year. However, margins faced pressure due to several factors, including higher procurement costs, early winter onset, and reduced bulk sales. For the nine-month period, revenue stood at ₹30,507 million. EBITDA for Q3 FY26 was ₹793 million with a margin of 7.7%, while PAT was ₹687 million with a margin of 6.7%.
Key Highlights and Challenges
Despite strong revenue growth, profitability was affected by:
- Higher milk procurement costs
- Early onset of winter impacting sales of certain products
- Negligible bulk sales
- Margin compression in African and Orgafeed segments
The company recognized a one-time provision of approximately ₹57 million due to revised labor code guidelines, which was offset by a tax reversal of ₹219 million.
Strategic Developments
Dodla Dairy is continuing its Maharashtra expansion project, with approximately ₹690 million of capital expenditure already deployed. Furthermore, the company is planning a greenfield capacity expansion in Uganda with a capital outlay expected in the range of ₹500-600 million over the next two years. This project includes securing approximately 70 acres of land.
Segment Performance
The Africa business saw a healthy revenue growth of 34.5% YoY, but margins remained under pressure. Orgafeed reported consistent double-digit YoY growth, with revenue up by 16.0% and an EBITDA margin of 11.6%.
Operational Metrics
Milk procurement volume reached 18.3 LLPD, up 7.5% YoY, and milk sales volume was 13.9 LLPD, an increase of 19.6% YoY. Value-Added Products (VAP) contributed 25% to total sales, excluding bulk sales.
ESG Initiatives
The company consumed 20,522 GJ from renewable sources and has been recognised with the 25th National Award for Excellence in Energy Management 2024 from CII
Source: BSE
