Dodla Dairy Ltd (BSE: 543306 / NSE: DODLA) reported higher revenue in the quarter ended December 2025, supported by volume growth in milk procurement and sales, while profitability was affected by rising procurement costs and lower contribution from high-margin products. The company reported consolidated revenue of ₹10,250 million in Q3 FY26, up 13.7% year-on-year and 0.6% sequentially. EBITDA declined 17.3% year-on-year to ₹793 million, while profit after tax rose 8.1% to ₹687 million. EBITDA margin stood at 7.7%, compared with 10.6% a year earlier.
Business overview
Dodla Dairy is an integrated dairy company engaged in procurement, processing and distribution of milk and value-added dairy products across India and Africa. Its product portfolio includes milk, curd, ghee, butter milk, paneer, flavoured milk, ice cream and milk-based sweets.
The company operates an integrated supply chain with procurement from farmers, processing facilities and a distribution network spanning multiple states, along with operations in Kenya and Uganda.
Financial performance
In Q3 FY26, revenue increased to ₹10,250 million from ₹9,012 million in Q3 FY25. EBITDA declined to ₹793 million from ₹959 million, while PAT increased to ₹687 million from ₹636 million. For the nine months ended December 2025, revenue rose 8.5% year-on-year to ₹30,507 million, while EBITDA declined 14.3% to ₹2,546 million and PAT increased 2.7% to ₹1,972 million.
Operating metrics
Milk procurement volume increased 7.5% year-on-year to 18.3 lakh litres per day (LLPD), while milk sales volume rose 19.6% to 13.9 LLPD.
Value-added products (VAP) sales stood at ₹2,581 million, representing 25% of total sales, compared with ₹2,812 million and 32% of revenue in Q3 FY25.
Realisation price per litre increased 4.9% year-on-year to ₹57.68, while procurement price rose 11.8% to ₹39.83.
Key developments
The company highlighted higher milk procurement prices due to supply shortages and erratic rainfall, while selling price increases were limited to maintain market share.
Dodla is progressing with its Maharashtra expansion project and plans a greenfield capacity expansion in Uganda with estimated capital outlay of ₹500–600 million over two years.
Risks and constraints
Disclosures indicate that profitability remains sensitive to milk procurement prices, seasonal demand patterns, product mix shifts and competitive pricing in domestic and African markets.
Outlook and commentary
Management stated that revenue growth momentum continued in Q3 FY26, while margins were affected by higher procurement costs, seasonal factors, lower bulk sales and margin pressure in Africa and Orgafeed segments.
