Dodla Dairy guides 10-12% growth, stable margins
Dodla Dairy Ltd has reported its Q2 earnings and maintained guidance for FY26 revenue growth of about 10-12%, with margins remaining stable. Company officials said they expect to hold their market share at around 6.5% in the domestic milk business.
The firm emphasised that despite cost pressures and inflation in input supplies, it remains focused on operational discipline and value-added product development to support margin stability. Further data on volume growth, product segments or regional performance was not disclosed in the update.
Investors will be watching how Dodla’s strategy plays out amid a challenging rural demand scenario and rising feed/cattle upkeep costs facing the Indian dairy industry.
Dodla Dairy Ltd reported consolidated revenue of ₹1,018.82 crore for the quarter ended 30 September 2025 (Q2 FY26), showing a year-on-year increase of approximately 2.1% (from ~₹997.6 crore a year ago). The company’s net profit rose to ₹65.67 crore, up around 3.6% year-on-year (against ~₹63.4 crore last year).
Despite the top-line growth, margin pressure remains a concern. Operating margin for Q2 stood at ≈ 9.11%, down from ~9.65% in Q2 last year. The PAT margin was around 6.45%, marginally up from ~6.35% a year ago.
In terms of forward guidance, Dodla has set FY26 revenue growth in the range of 10-12%, reduced from an earlier expectation of ~15%. The company expects margins to remain 8-9% in FY26 and aims to maintain its market share at ~6.5% in its core market. Management also flagged that production operations in Maharashtra are scheduled to begin in March 2027.
The company further highlighted cost-side challenges, including higher procurement costs, logistics inflation, and competitive intensity in the organised dairy sector, which are constraining margin expansion despite stable demand in value-added categories such as curd, paneer and ghee.
On the balance sheet side, Dodla continues to enjoy a strong financial position: very low debt, robust return on equity (~18.49%) and increasing institutional interest among domestic mutual funds.
Source : Dairynews7x7 Nov 21st 2025 CNBC TV