Dodla Dairy Q2 Results: Revenue slightly rises from last year, margins at 9%

Dodla Dairy Ltd. reported a 3.6% year-on-year rise in net profit to ₹65.6 crore for the July–September quarter, compared to ₹63.3 crore in the same period last year.

Revenue from operations increased 2% to ₹1,019 crore from ₹997.6 crore a year ago.

However, operating performance remained subdued, with EBITDA falling 3.5% to ₹92.7 crore from ₹96 crore in the corresponding quarter last year.

EBITDA margin stood at 9.1%, down from 9.6% in the year-ago period, indicating slight pressure on profitability.

"This quarter’s performance includes 2 months of contribution from our recently acquired OSAM Dairy business, which currently operates at lower margins. A significant change in product mix was observed for Dodla’s portfolio, with bulk sales contribution declining and growth being driven by liquid milk and high margin value-added products such as curd, ghee, lassi, flavoured milk, and ice cream. This shift resulted in modest revenue growth but strong gross profit improvement," said Dodla Sunil Reddy, Managing Director of Dodla Dairy.

Looking ahead, with GST benefits and festive demand, Dodla is well positioned to sustain consistent growth and enhance the share of value-added products, the MD added.

Following the earnings announcement, shares of Dodla Dairy Ltd. are trading 3% lower at ₹1,248.80. On a year-to-date basis, the stock is flat.