Dodla Dairy profit falls 44.3% to 36.59 crore rupees in second quarter
Key Facts
Dodla Dairy’s consolidated net profit fell 44.3% to 36.59 crore rupees in the quarter ended September 30, 2026, compared with 65.67 crore rupees in the same period a year earlier, according to Business Line via TradingView. Revenue from operations rose 17.4% to 1,196.02 crore rupees, from 1,018.82 crore rupees a year earlier. The results show a widening gap between sales growth and profitability, as the cost of procuring milk rose faster than the realized selling price. The company said its milk procurement price rose 15.7% year on year to 43.2 rupees per litre in the second quarter of fiscal 2026-2027. By contrast, the realized selling price rose 8% to 61.9 rupees per litre, adding pressure to operating margins.
Cost pressures also extended to packaging materials and overheads. Packaging material costs rose 41.6% year on year in the second quarter, Business Line reported, while overheads per litre increased due to inflation, the new labor law and geopolitical factors. The company said, "Packaging material costs rose 41.6%, and overheads per litre increased due to inflation, the new labor law and geopolitical factors." To pass on some of the higher costs, Dodla raised milk prices by 2.5 rupees per litre during the quarter. But the increase had only a partial effect on the period’s results because the price adjustment began in its second half, according to the newspaper. The combination of higher input costs and the delayed full effect of price increases coincided with a sharp decline in net profit.
Operationally, milk procurement volume rose 9.3% to 21.3 lakh litres per day in the second quarter, while milk sales volume increased 8.4% to 14.2 lakh litres per day, according to data reported by Business Line. The higher volumes point to growth in procurement and sales alongside rising milk costs, but volume growth did not prevent a decline in quarterly profit. The company also said festive demand shifted to the third quarter this year, after falling in the second quarter last year. The difference in the timing of this demand means the two quarters do not reflect the same seasonal timing, according to the company. It said, "Festive demand shifted to the third quarter this year from the second quarter last year."
First-half figures for fiscal 2026-2027 show that the profit decline extended beyond the latest quarter. Net profit fell to 77.23 crore rupees in the first six months, from 128.53 crore rupees in the corresponding period a year earlier, according to Press Trust of India in a report published by Rediff. Over the same period, total income rose to 2,418.48 crore rupees, from 2,053.98 crore rupees in the previous first half. This places higher income alongside lower profit during April-September, mirroring the divergence between revenue growth and declining net profit in the second quarter. The comparison reinforces the picture of a period in which income expanded while the profitability pressures reported by the company continued.
In a separate expansion initiative, Dodla’s board approved a proposal to establish a joint venture in India with Mido India Holdings to market and sell dairy ingredients to businesses. The proposal provides for a 40% stake for Dodla and 60% for Mido India Holdings, according to Business Line. The joint venture has not been established; the proposal remains subject to signing the joint venture agreement and obtaining regulatory approvals. The company said, "The proposal is subject to signing a joint venture agreement and obtaining regulatory approvals." The venture therefore remains a proposed expansion into the dairy ingredients market, pending completion of the procedures specified in the proposal.