Dodla Dairy Delivers Record Revenue of ₹1,197.9 Crore in Q1 FY27 Driven by VAP Surge and 45.6% Growth in Africa

Integrated dairy major Dodla Dairy Limited (BSE: 543306, NSE: DODLA) announced its financial performance for the first quarter ended June 30, 2026. The company posted its highest-ever quarterly revenue of ₹1,197.9 crore, marking a 19.0% year-on-year increase from ₹1,006.9 crore in Q1 FY26 and an 11.5% sequential growth over ₹1,074.5 crore in Q4 FY26.

Despite strong top-line expansion, profitability faced pressure due to elevated milk procurement costs, rising packing material prices, and higher operational expenses. Consolidated EBITDA stood at ₹64.9 crore, down 21.3% year-on-year, yielding an EBITDA margin of 5.4%. Net profit after tax came in at ₹40.6 crore, compared to ₹62.9 crore in Q1 FY26.

Record Procurement and Strong Operational Milestones

Operational metrics reached historical peaks across core segments during the quarter:

Milk Procurement: Reached an all-time high volume of 21.1 lakh liters per day (LLPD), growing 13.0% year-on-year.

Milk Sales Volume: Stood at 13.6 LLPD, registering a 14.5% year-on-year expansion.

Value-Added Products (VAP): Revenue from VAP climbed to a record ₹414.7 crore, accounting for 34.6% of total sales.

Core VAP Growth: Excluding bulk sales of skimmed milk powder (SMP) and butter-which stood at ₹57.7 crore in Q1 FY26 but were nil in Q1 FY27-core VAP revenue surged by 40.5% year-on-year from ₹295.1 crore. Curd sales posted exceptional momentum, expanding 41.4% to reach a record peak of 642.6 metric tonnes per day (MTPD). High-margin summer products such as ice cream, buttermilk, flavoured milk, lassi, and paneer performed strongly, aided by an extended summer season.

Margin Compression and Cost Dynamics

Elevated raw milk procurement costs and operational expenses impacted gross profit margins across domestic and overseas verticals.

Procurement vs. Realization: Procurement prices rose 10.4% year-on-year to ₹41.3 per liter, while average realization prices grew by 3.9% to ₹59.4 per liter. Higher procurement costs were passed on to end consumers in a gradual manner, in alignment with industry trends.

Cost Drivers: Domestic margins were further impacted by a 48% jump in packing material costs driven by geopolitical tensions and product mix shifts. Additionally, employee costs increased following minimum wage compliance for off-roll staff, alongside higher transport and fuel expenses linked to the distribution of liquid milk and VAP.

Segmental Performance Highlights

International & Subsidiary Operations

Africa Business: Delivered exceptional performance with revenues surging 45.6% year-on-year, propelled by a 52.3% spike in milk sales volume. Targeted market share expansion and strategic pricing in Kenya helped the division post its highest-ever EBITDA of ₹24.2 crore.

Orgafeed Business: Revenue increased by 25.9% year-on-year with an EBITDA margin of 10.5%. Although raw material inflation compressed margins compared to the prior-year period, performance reflected a meaningful recovery over Q4 FY26.

OSAM Business: Operational efficiency improvements resulted in improved operating margins for Q1 FY27 compared to the overall FY26 performance, despite sustained procurement cost pressures.

Strategic Investment in Premium D2C Segment

The Board of Directors approved a primary equity investment of ₹11.6 crore to acquire a 2% stake in Sids Farm Private Limited at a pre-money valuation of ₹500 crore.

Sids Farm operates as a premium, antibiotic- and hormone-free dairy brand with an established direct-to-consumer (D2C) and e-commerce presence across multiple regions. The strategic investment complements Dodla Dairy's existing commercial operations by providing direct entry into the high-growth, premium D2C dairy category.

Shares of Dodla Dairy Limited was last trading in BSE at Rs. 1052.75 as compared to the previous close of Rs. 1039.90. The total number of shares traded during the day was 876 in over 93 trades.

The stock hit an intraday high of Rs. 1063.40 and intraday low of 1022.60. The net turnover during the day was Rs. 907146.00.

Source : Equity Bulls

Keywords

DodlaDairy Q1FY27 Q1FY2027 ResultUpdate