Dodla Dairy Q2 FY27 Results (NSE: DODLA)
Signal: Margin pressure
The read
The trajectory remains revenue-positive but earnings-negative: Q2 revenue rose 17.4% YoY on 8.4% milk-sales volume growth, while EBITDA margin stayed at 5.4% for a second consecutive quarter and PAT fell 44.3% as procurement prices increased 15.7% versus 8.0% realisation growth. Africa's 55.9% revenue growth and the 27.3% VAP mix provide offsets, but margin recovery depends on fuller price-pass-through and moderation in raw-milk inflation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,196 Cr | 17.4% | -0.2% |
| Net profit | ₹36.6 Cr | -44.3% | |
| EPS | ₹6.1 | -44.0% | |
| EBIT margin | 5.4% |
P&L walk
Revenue increased 17.4% YoY to ₹1,196.0 crore on 8.4% milk-sales volume growth and improved realisation, but EBITDA fell 30.9% to ₹64.1 crore as procurement prices rose 15.7% versus an 8.0% realisation increase; PAT consequently declined 44.3% to ₹36.6 crore.
Segments
Africa was the clearest growth driver, with revenue up 55.9% YoY and quarterly EBITDA of ₹18.9 crore, while domestic VAP momentum was mixed: VAP sales rose 11.7% to ₹327.0 crore but summer-product demand softened sequentially.
Key positives
- Revenue rose 17.4% YoY to ₹1,196.0 crore, supported by 8.4% milk-sales volume growth and 9.3% procurement-volume growth to a record 21.3 LLPD.
- Africa revenue increased 55.9% YoY, with milk-sales volume up 68.5% and quarterly EBITDA of ₹18.9 crore.
- VAP sales increased 11.7% YoY to ₹327.0 crore, and VAP contribution excluding bulk sales improved to 27.3% from 26.0%.
Key concerns
- EBITDA margin compressed 371bps YoY to 5.4% as procurement prices rose 15.7% against an 8.0% increase in realisation prices, indicating incomplete cost pass-through.
- PAT declined 44.3% YoY to ₹36.6 crore despite 17.4% revenue growth, while EBITDA fell 30.9% to ₹64.1 crore.
- Packing-material costs increased 41.6% YoY, while overhead cost per litre also increased due to inflation, the new labour code and geopolitical issues.
- Demand for summer-related VAP products moderated sequentially, and festive demand shifted to Q3 against a high Q2FY26 base.
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