Dodla Dairy Q2 FY27 results: net profit down 44.3% to ₹36.59 crore, revenue up 17.4%

How did Dodla Dairy perform in Q2 FY27?

Dodla Dairy reported consolidated revenue of ₹1,196 crore in Q2 FY27, up 17.4% from ₹1,019 crore in Q2 FY26. Revenue was ₹1.92 crore lower than ₹1,198 crore in Q1 FY27. EBITDA was ₹64.09 crore, down ₹28.72 crore from ₹92.81 crore a year earlier, while EBITDA margin declined 3.7 percentage points to 5.4% from 9.1%.

Profit before tax fell 38.9% to ₹50.57 crore from ₹82.77 crore, and net profit fell 44.3% to ₹36.59 crore from ₹65.67 crore. Basic EPS declined 44.4% to ₹6.06 from ₹10.89. Against Q1 FY27, net profit fell 10.0% by ₹4.05 crore and EPS fell 10.1% by ₹0.68.

On a standalone basis, Q2 FY27 revenue was ₹936.06 crore and profit after tax was ₹25.08 crore. The Board approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026.

What changed in Dodla Dairy's costs and profit?

Cost of materials consumed was the largest increase, rising ₹216.21 crore, or 28.6%, to ₹973.14 crore from ₹756.93 crore in Q2 FY26. Total expenses increased ₹208.96 crore, or 22.1%, to ₹1,156.39 crore, ahead of the 17.4% rise in revenue.

Employee cost increased ₹5.04 crore, or 10.1%, to ₹54.96 crore; finance costs increased ₹0.08 crore, or 9.6%, to ₹0.91 crore; depreciation increased ₹2.95 crore, or 14.3%, to ₹23.55 crore; and other expenses increased ₹17.32 crore, or 12.4%, to ₹156.63 crore. Other income fell ₹0.44 crore, or 3.9%, to ₹10.94 crore.

There was no exceptional item. Tax expense was ₹13.98 crore, down ₹3.12 crore, or 18.2%, from ₹17.10 crore. The company said milk procurement costs remained elevated, while logistics, packaging and other overheads also increased; the quarter’s price increase was implemented towards the end of the period, so its full benefit was expected in the next quarter.

How did the first half of FY27 go?

Dodla Dairy’s H1 FY27 consolidated revenue rose 18.2% to ₹2,393.96 crore from ₹2,025.69 crore in H1 FY26. Total income increased 17.7% to ₹2,418.48 crore from ₹2,053.98 crore, while basic EPS fell 39.9% to ₹12.8 from ₹21.31.

Profit before tax fell 35.7% to ₹105.27 crore from ₹163.74 crore, and profit after tax fell 39.9% to ₹77.23 crore from ₹128.54 crore. The decline in profit was ₹51.31 crore, against a ₹368.27 crore increase in revenue.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹2,200.76 crore, against ₹2,096.44 crore at 31 March 2026, while total equity was ₹1,721.65 crore against ₹1,674.08 crore. Borrowings increased to ₹44.48 crore from ₹29.77 crore, and cash rose to ₹151.75 crore from ₹81.23 crore.

Inventories increased to ₹231.62 crore from ₹155.34 crore, trade receivables to ₹17.0 crore from ₹13.5 crore, and trade payables to ₹208.89 crore from ₹188.42 crore. H1 FY27 operating cash flow was ₹86.71 crore, compared with ₹174.2 crore in H1 FY26; investing cash flow was ₹25.24 crore against negative ₹120.61 crore, and financing cash flow was negative ₹39.16 crore against negative ₹17.96 crore. Capital expenditure was ₹120.45 crore against ₹77.2 crore.

How has Dodla Dairy done over the last 8 quarters?

Revenue increased year on year in each of the last eight quarters and reached ₹1,196.02 crore in Q2 FY27, nearly level with ₹1,197.94 crore in Q1 FY27. The peak in the provided period was ₹1,197.94 crore in Q1 FY27, while the low was ₹901.22 crore in Q3 FY25.

Net profit reached its highest level of ₹69.73 crore in Q4 FY26 before falling to ₹40.64 crore in Q1 FY27 and ₹36.59 crore in Q2 FY27; the period low was ₹36.59 crore in the latest quarter. EBITDA margin peaked at 10.6% in Q3 FY25, bottomed at 5.0% in Q4 FY26 and was 5.4% in Q2 FY27.

What else did the company announce?

The Board approved the proposal to establish a joint venture in India with Meadow India Holdings Limited for marketing and selling high-quality dairy ingredients in the business-to-business market. The proposed equity participation is 40% for Dodla Dairy and 60% for Meadow India Holdings Limited, subject to execution of the joint venture agreement, completion of formalities and applicable approvals.

The Board also approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026 and noted the unmodified limited review reports of the statutory auditors. The same-day investor presentation stated that revenue increased 17.4% year on year, while margins and profit fell.

What did Dodla Dairy's management say?

Management guided to a consolidated EBITDA margin of 7.5%-8% in Q3 FY27 and hoped it would continue in subsequent quarters if there were no major changes. It expected procurement prices to remain near current elevated levels, with possible variation of INR0.20-INR0.30 from location and mix, and said it did not plan further selling-price increases unless cooperatives raised prices.

Management said the company would strengthen procurement and distribution, improve operating efficiency, expand its value-added products portfolio and execute expansion plans. Maharashtra liquid milk operations were planned for March-April 2027, powder operations for September 2027, and Uganda operations for early FY28; overall capital expenditure could rise 5%-10% above the prior approximately INR600 crore estimate.

Management identified elevated milk procurement and farmer feed and fodder costs, logistics, packaging, labour and geopolitical inflation as risks. Other stated risks included OSAM integration, direct-procurement transition, competitive intensity, seasonal softness in summer-oriented value-added products, and El Niño and drought effects on milk availability and farm productivity. The call transcript did not record any analyst questions.

How did Dodla Dairy shares react?

Dodla Dairy shares were up 2.6% after five minutes, 2.5% after 15 minutes and 1.8% after 30 minutes from the price when the filing appeared. The stock closed the reaction session down 2.1% from its pre-results close, compared with a 0.5% median rise for other Dairy Products stocks, underperforming the industry by 2.6 percentage points.

By the next day’s close, the stock was down 0.9% from its pre-results close, against a 0.3% median rise for the industry. Its relative performance was 1.2 percentage points below the sector. Earlier results-day moves included declines of 2.9% on 25 July 2026, 3.0% on 3 November 2025 and 8.0% on 21 July 2025, alongside gains of 1.8% on 16 May 2026 and 2.1% on 19 May 2025.

How did other Dairy Products companies do?

Five other Dairy Products companies that had filed for the quarter were compared with Dodla Dairy. Their median revenue growth was 21.7%, compared with Dodla Dairy’s 17.4% growth in Q2 FY27. One peer grew more slowly than the company, while four peers grew faster than the company.

Two of the five peers reported higher profit. The peer comparison was based on results available as of 4 November 2026.