Dodla Dairy's net profit for the second quarter decreased by 44%

For the second quarter ended September 30, 2026, Dodla Dairy Ltd reported a consolidated net profit of ₹36.59 crore, down 44.3% compared to ₹65.67 crore in the corresponding period of the previous year. Meanwhile, the company's operational revenue increased by 17.4% to reach ₹1,196.02 crore against ₹1,018.82 crore a year earlier. Company representatives noted that the consolidated results are not directly comparable with the previous period due to the acquisition of HR Food Processing Private Ltd, which became effective on August 1, 2025.

Financial performance in the second quarter experienced pressure due to rising expenses: milk procurement costs increased by 15.7% year-on-year to ₹43.2 per litre, while the selling price grew by only 8% to ₹61.9 per litre. The cost of packaging materials rose by 41.6%, and an increase in overhead costs per litre of product was also recorded against the backdrop of inflation, a new labor code, and geopolitical factors. During the quarter, the company raised milk prices by ₹2.5 per litre, but due to the changes taking effect in the second half of the quarter, this effect was only partially reflected in the results. An additional factor was the shift in festive demand from the second quarter of last year to the third quarter of the current year.

During operational activities, milk procurement grew by 9.3% (to 2.13 million litres per day), and milk sales increased by 8.4% (to 1.42 million litres per day). Sales of value-added products amounted to ₹327 crore compared to ₹292.8 crore, and curd sales volumes grew by 23% to 444.7 tonnes per day. The company's business in Africa, covering Kenya and Uganda, demonstrated a revenue growth of 55.9%.

The company's Board of Directors approved the initiative to establish a joint venture in India with Meadow India Holdings Ltd (MIHL) for the sale of dairy ingredients to businesses. Dodla's stake in the new venture will be 40%, and MIHL's 60%, with the project awaiting the signing of the agreement and regulatory approvals. On the BSE exchange, the company's shares declined by 1.11% during the first hour of trading and were traded at ₹983.40.