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View Promises →Dodla Dairy Limited — Q3 FY26
Dodla Dairy reported Q3 FY26 revenue of ₹1,025 crore (+13.7% YoY), driven by strong volume growth in liquid milk and value-added products, partially offset by a sharp decline in bulk sales (from ₹72 crore to negligible).
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Dodla Dairy reported Q3 FY26 revenue of ₹1,025 crore (+13.7% YoY), driven by strong volume growth in liquid milk and value-added products, partially offset by a sharp decline in bulk sales (from ₹72 crore to negligible). EBITDA margin contracted to 7.7% due to a ₹2.5/liter sequential increase in procurement costs, which were not fully passed on to consumers amid subdued winter demand. A one-time provision of ₹6 crore for labor law changes was offset by a ₹22 crore tax reversal. Africa revenue grew 34.5% YoY to ₹133 crore, with EBITDA improving to ₹17 crore. Management expects margin pressure to persist in Q4 but anticipates recovery in summer with price hikes of ₹2-3/liter. Risks include prolonged milk shortage due to erratic weather and potential El Niño impact on procurement costs.
डोडला डेयरी ने वित्त वर्ष 2026 की तीसरी तिमाही में 1,025 करोड़ रुपये की कमाई की, जो पिछले साल से 13.7% ज्यादा है। यह बढ़ोतरी दूध और दूध से बने उत्पादों की ज्यादा बिक्री से हुई, लेकिन थोक बिक्री 72 करोड़ से घटकर लगभग शून्य हो गई। कंपनी का मुनाफा मार्जिन 7.7% रहा, क्योंकि दूध खरीद की लागत 2.50 रुपये प्रति लीटर बढ़ गई, जिसे सर्दियों में कम मांग के कारण ग्राहकों पर पूरा नहीं डाला जा सका। श्रम कानून बदलाव के लिए 6 करोड़ का एकमुश्त खर्च हुआ, लेकिन टैक्स में 22 करोड़ की छूट मिली। अफ्रीका में कमाई 34.5% बढ़कर 133 करोड़ रुपये हुई। कंपनी का कहना है कि मार्जिन पर दबाव चौथी तिमाही में भी रहेगा, लेकिन गर्मियों में दूध के दाम 2-3 रुपये बढ़ाने से सुधार होगा। खतरा है कि मौसम खराब रहने से दूध की कमी और लागत बढ़ सकती है।
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Risk Intelligence
Prolonged milk shortage and procurement cost inflation
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Read Transcript →Quarter Snapshot
Milk procurement volume
18.3 lakh liters/day
+7.5% YoY
Procurement volume increased despite industry-wide milk shortage, aided by new chilling centers.
Liquid milk sales volume
13.9 lakh liters/day
+19.6% YoY
Strong liquid milk growth driven by market share gains and Osam acquisition.
Curd sales volume
355 metric tons/day
+15.5% YoY
Curd remains the largest value-added product, growing steadily.
Africa revenue (Q3)
₹133 crore
+35% YoY
Africa business driven by Kenya expansion; EBITDA margin improved to ~12.8%.
What Changed vs Last Quarter
NEW
Price hike of ₹2-3/liter expected in summer
Management plans to increase milk prices by ₹2-3 per liter once summer demand picks up, to offset higher procurement costs.
NEW
Maharashtra plant to start commercial operations by end of FY27
The Maharashtra greenfield project is on track, with ₹69 crore already spent out of ₹280 crore total capex. First-year revenue potential of ₹500-600 crore.
NEW
Uganda greenfield expansion to generate revenue by end of FY28
A new 3 lakh liter/day plant near Kampala will focus on fresh milk and yogurt, with phase one capex of ₹50-60 crore funded by internal accruals.
NEW
Value-added product mix target of 30-32% over long term
Management aims to increase VAP share from current 25% to 30-32% through paneer, curd, and ice cream growth.
DROPPED
EBITDA margin guidance of 8-10% for H2 FY26
Management expects to maintain EBITDA margins between 8% and 10% in the second half, barring weather-related disruptions.
DROPPED
India standalone revenue growth of 5-6% in H2
India standalone revenue is expected to grow at 5-6% in the second half due to winter seasonality impacting value-added products.
DROPPED
Maharashtra plant to scale to 2 lakh litres/day in 2 years
The Maharashtra facility currently processes 1.2 lakh litres/day and is targeted to reach 2 lakh litres/day within two years, with breakeven expected in 3-4 quarters.
NEW RISK
Prolonged milk shortage and procurement cost inflation
Erratic rainfall and lack of flush season have driven procurement costs up ₹2.5/liter sequentially, with no immediate relief expected.
NEW RISK
Inability to pass on cost increases due to subdued demand
Management delayed price hikes to maintain market share, compressing margins. If summer demand remains weak, margin recovery may be delayed.
NEW RISK
Execution risk in Maharashtra and Uganda expansions
Large capex projects (₹280 crore in Maharashtra, ₹50-60 crore in Uganda) face timeline and cost overrun risks.
NEW RISK
Potential El Niño impact on milk supply and costs
El Niño could lead to severe summers and further milk shortages, increasing procurement costs and pressuring margins.
RISK GONE
Elevated procurement costs due to weather
Erratic rainfall and lean season have pushed procurement costs to ₹37.29/litre, up 7.6% YoY, and management expects further pressure in Q3.
RISK GONE
Osam Dairy margin improvement timeline
Osam operates at low margins (~2.6% EBITDA margin) and management could not provide a specific timeline for improvement to 8-9% levels, citing operational inefficiencies.
RISK GONE
Bulk sales volatility impacting revenue growth
Bulk SMP/butter sales dropped from ₹165 crore to ₹28 crore YoY, causing overall revenue growth to slow to 2.1%. This volatility may recur.
Fast read
Guidance and risk preview
Management plans to increase milk prices by ₹2-3 per liter once summer demand picks up, to offset higher procurement costs.
Erratic rainfall and lack of flush season have driven procurement costs up ₹2.5/liter sequentially, with no immediate relief expected.
View Risks →