DODLABSEDodla Dairy LtdHighNeutral
Announced Sat, 16 May · 22:45 IST

Intimation attached

Ebitda Margin CompressionResults View source PDF

DODLA · price

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Price reaction · full curve 14 horizons · vs prior close
+0.0%1-day move
₹1025.00
prior close
₹1009.00
base price
After-mkt
timing
5m10m15m30m1D2D3D4D5D7D15D1M2M3M
-1.5-1.5-1.4-1.6+0.0-0.6+0.8+3.9+6.5+9.3+5.4+7.0+4.8
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AI summary

Dodla Dairy reported its highest-ever quarterly revenue of ₹10,745 Mn (up 18.1% YoY) and yearly revenue of ₹41,252 Mn (up 10.9% YoY). Milk sales volume hit a record 14.0 LLPD, up 19.5% YoY, driven by strong India and Africa performance. However, EBITDA fell 35.6% YoY in Q4 to ₹538 Mn and 19% for the full year to ₹3,085 Mn, as EBITDA margin compressed sharply from 10.2% in FY25 to 7.5% in FY26. PAT grew a modest 2.7% YoY to ₹2,670 Mn, supported by a one-time tax credit of ₹292 Mn from a favorable ITAT order. The margin compression was driven by elevated milk procurement costs rising faster than realization prices, higher advertising spend, and increased transport overhead costs. Africa business delivered robust 48% YoY revenue growth. The company also flagged one-time exceptional item reversal of ₹32 Mn related to labour code expenses.

Likely market impact

Top-line growth is strong on the back of volume expansion, but the sharp EBITDA margin compression from 10.2% to 7.5% signals significant cost pressure. PAT growth of only 2.7% despite a ₹292 Mn tax benefit indicates underlying profitability weakness. The stock may face near-term pressure if input cost normalisation is delayed.