Dodla Dairy Limited — Investor Meet, 07-11-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:**

Q2 FY26 revenue reached INR1,019 Cr (+2.1% YoY), marking the second consecutive quarter over INR1,000 Cr. EBITDA stood at 9.1% and PAT at 6.4%. Core business, excluding OSAM and bulk sales, grew 13% YoY. Gross profit margin improved to 27.7%. H1 FY26 revenue was INR2,026 Cr (+6.1% YoY). Bulk sales were significantly lower at INR28 Cr compared to INR167 Cr in Q2 FY25.

**Management Commentary & Outlook:**

Management strategically pivoted from bulk sales to higher-margin Value-Added Products (VAP). Procurement costs rose due to unseasonal rains and lean season pressure, but product mix shifts improved net sales realization. Africa and Orgafeed businesses delivered healthy growth. The company expects standalone India revenue growth of 6-8% in H2, with consolidated margins projected to stay within 8-10%.

**Operational Updates:**

Milk procurement increased to 19.5 lakh liters/day (+13.4% YoY), and liquid milk sales grew 12.6% YoY. VAP sales (excluding bulk) jumped 22% YoY, primarily driven by paneer and curd. The OSAM acquisition contributed INR52.6 Cr in revenue over two months, with a focus on enhancing operational efficiency to scale volumes and improve its 2.6% EBITDA margin to consolidated levels within 2-3 years. Maharashtra expansion continues.

**Analyst Q&A Highlights:**

Discussions confirmed procurement cost pressures due to adverse weather impacting milk supply. Management clarified that recent price adjustments stemmed mostly from an improved product mix rather than significant MRP hikes. Advertisement and promotional spend increased to INR10 Cr from INR7.2 Cr YoY to boost brand presence.

**Strategic Themes & Sentiment:**

The company is focused on brand building, expanding its VAP portfolio, and improving operational efficiency, particularly with the successful integration of OSAM. Management expressed confidence in achieving sustained long-term growth and maintaining profitability across all business segments by strategically adapting to market dynamics.