Dodla Dairy reported a 13.75% year-on-year revenue growth in Q3 FY26, reaching INR 1025 crores. Despite procurement cost increases, the company maintained volume growth across milk and value-added products. Africa operations saw a 34.5% revenue increase, and Orgafeed’s revenue grew by 16%. The company anticipates improved performance in the upcoming quarters due to anticipated seasonal changes and strategic initiatives.
Financial Performance
In Q3 FY26, Dodla Dairy reported a revenue of INR 1025 crores, a 13.7% increase year-on-year. EBITDA stood at INR79 crores with a margin of 7.7%, while net profit reached INR69 crores. Despite challenges, the company experienced volume growth in milk and value-added products (VAP).
Segment Performance
The company delivered strong results across its key segments:
- Africa: Revenue grew by 34.5% year-on-year, driven by expansion in Kenya.
- Orgafeed: Revenue increased by 16%, although margins were affected by raw material price inflation.
Strategic Initiatives and Outlook
Dodla Dairy is focusing on several key initiatives to drive future growth:
- Expansion in Uganda: The company has secured land for a greenfield expansion project with a planned capex of INR 50-60 crores.
- Maharashtra Project: Civil work is underway with commercial operations expected to commence by the end of FY27.
- Product Innovation: The company has launched new offerings such as masala paneer and new ice cream flavors.
Procurement and Pricing
The average milk procurement stood at 18.3 lakh liters per day, a 7.5% increase year-on-year. Average procurement cost in Q3 FY26 was INR39.8 per liter, up from INR35.6 per liter in Q3 FY25. Despite cost pressures, the company expects to mitigate the situation in coming quarters and is considering strategic price hikes.
Source: BSE
